Monday, March 27, 2017

Astino: Earning Soared

Recent Financial Results

In QE31/1/2017, Astino's net profit rose by 117% q-o-q or 75% y-o-y to RM12 million while its revenue rose by 18% q-o-q or 12% y-o-y to RM134 million. Revenue rose q-o-q primarily due to increase in overseas market demand and the selling price. PBT rose q-o-q mainly due to increase in sales and profit margin. [FYI, Astino is involved in the manufacture & sale of metal roof sheets & other building related products. I posted on this stock 10 years ago. (here)]


Table: Astino's last 8 quarters' results


Graph: Astino's last 39 quarters' results

Financial Position

Astino's financial position as at 31/1/2017 is deemed healthy with current ratio at 3.1x and gearing ratio at 0.3x.

Valuation

Astino (closed at RM0.75 last Friday) is now trading at a trailing PER of 5.7x (based on last 4 quarters' EPS of 13.16 sen). At this PER, Astino is deemed fairly attractive.

Technical Outlook

Astino has tested its long-term uptrend line at RM0.70. If it can break above its intermediate downtrend line at RM0.80, it may continue with its prior uptrend.


Chart: Astino's monthly chart as at Mar 24, 2017(Source: Shareinvestor.com)

Conclusion

Based on good financial performance, attractive valuation & mildly bullish technical outlook, Astino could be a good stock for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

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