Magni: Earnings stablilized

Results Update

For QE30/4/2015, Magni's net profit dropped 5% q-o-q but rose 95% y-o-y to RM16.5 million while revenue dropped 12% q-o-q but rose 9% y-o-y to RM177 million. Revenue increased q-o-q due to higher sale orders received from garment and packaging businesses by 29.0% and 1.1% respectively. PBT for the current quarter increased q-o-q mainly due to higher revenue and other operating income.

Table: Magni's last 8 quarterly results


Chart 1: Magni's last 25 quarterly results

Valuation

Magni (trading at RM3.60 yesterday) has a trailing PE of 7.5 times (based on last 4 quarters' EPS of 48 sen). At this PER, Magni's valuation is still undemanding. It may command a PE of 9-10 times.

Technical Outlook

Magni is in a gradual uptrend line. Its immediate support is at the horizontal support of RM3.10- coinciding with the 10-Month SMA line.


Chart 2: Magni's weekly chart as at Jun 23, 2015 (Source: ShareInvestor.com)

Conclusion

Despite the satisfactory financial performance & attractive valuation, Magni is still a good stock for long-term investment.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Magni.