MBSB- an attractive finance stock

by **hlk** Fri 03 May 2013, 16:33

Result Update
MBSB has just announced
its result for QE31/3/2013. Its net profit dropped 9.5% q-o-q but rose
109% y-o-y to RM166 million while revenue rose 15% q-o-q or 48% y-o-y
to RM562 million. The q-o-q decline in net profit was attributable to
the gain of RM55.4 million from the disposal of property development by
a wholly-owned subsidiary accounted for in the immediate preceding
quarter, QE31/12/2012. If this exceptional gain is excluded, MBSB's
pre-tax profit actually rose by 25% or RM47 million.

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Table: MBSB's last 8 quarterly results

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Chart 1: MBSB's last 35 quarterly results
Valuation

MBSB
(at RM2.77 as at 4.15pm) is now trading at a PE of 5.3 times (based on
annualized EPS of 52 sen). At this PE, MBSN is deemed very attractive.

Technical Outlook

MBSB is in a steady uptrend, with immediate support at RM2.65.

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Chart 2: MBSB's daily chart as at May 3, 2013_4.15pm (Source: quickcharts)

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Chart 3: MBSB's weekly chart as at May 3, 2013_4.15pm (Source: quickcharts)

Conclusion

Based
on improving financial performance & relatively attractive
valuation, MBSB is 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, MBSB.

Author: Alex Lu