Magni: Profits Rose Despite Lower Revenue19th March 2019
Revenue receded slightly by 1.4% y-o-y due to lower revenue from the garment segment (dropped by 1.1% mainly due to lower sale orders received) and lower revenue for the packaging revenue (dropped by 4.2% mainly due to lower sale orders received). Profit before tax improved by 7.7% y-o-y due to 6.4%-increase in PBT from the Garment segment (mainly due to higher foreign exchange gain by RM2.992 million and lower operating expenses incurred) and 46.4%-increase in PBT from the packaging segment (mainly due to lower operating expenses incurred).
Table: Magni’s last 8 quarterly results
Graph: Magni’s last 48 quarterly results
As at 31/1/2019, Magni’s financial position was very healthy with current ratio at 5.4 times and gearing ratio at only 0.14 time.
Magni (closed at RM4.66 yesterday) has a trailing PE of 7.5 times (based on last 4 quarters’ EPS of 62.15 sen). At the same time, Magni paid quarterly dividend which totaled 23 sen; giving the stock a DY of 4.9%. Overall, Magni is still fairly attractive.
Magni has been trading sideways for the past 1 years, mostly in a range between RM4.00 and RM5.00. Until a breakout of this range has happened, Magni would remain range bound.
Chart: Magni’s weekly chart as at Mar 18, 2019 (Source: Malaysiastock.biz)
Based on good financial performance and position plus attractive valuation, Magni is a good stock to consider for long-term investment.
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