MAGNI (7087) -MAGNI-TECH INDUSTRIES BHD: Earning Growth Slowed
Results Update
For QE31/1/2017, Magni's net profit rose 3.6% q-o-q or 13.4% y-o-y
to RM29.6 million while revenue rose 3.3% q-o-q or 7.5% y-o-y to
RM289 million. Revenue increased q-o-q due to 3.7%-increase in Garment
revenue as a result of favorable foreign exchange rate but was partially
weighed down by lower sale orders received and 0.4%-increase in
Packaging revenue as a result of higher sale orders received. PBT
increased q-o-q due to higher PBT for Garment PBT of 14.2% mainly due to
higher revenue and higher foreign exchange gain (Other operating
income) which was partially offset by a 158.5%-drop in packaging PBT
mainly due to the provision of SIPP's closure costs of RM2.877 million.
Had there been no provision for the closure costs, packaging PBT would
have been higher by 18.6% versus the preceding quarter mainly due to
better productivity, aided by a slight increase in revenue.
Table: Magni's last 8 quarterly results
Graph: Magni's last 32 quarterly results
Valuation
Magni (trading at RM5.16 yesterday) has a trailing PE of 8.4 times (based on last 4 quarters' EPS of 61.73 sen). Its last 2 years' earning CAGR was at 50%; giving the stock a PEG ratio of less than 0.2x. At this PEG ratio, Magni's valuation is still very attractive.
Technical Outlook
Magni is in a long-term uptrend. The stock broke above the January 2016 high of RM4.60; signaling the continuation of the long-term uptrend.
Chart 1: Magni's monthly chart as at Mar 16, 2017 (Source: ShareInvestor.com)
Chart 2: Magni's weekly chart as at Mar 16, 2017 (Source: ShareInvestor.com)
Conclusion
Based on good financial performance, attractive valuation and bullish technical outlook, Magni remains a very 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.
MAGNI (7087) -MAGNI-TECH INDUSTRIES BHD: Earning Growth Slowed
http://nexttrade.blogspot.my/2017/03/magni-earning-growth-slowed.html
