Results Update

Measat has just announced its results for QE31/3/2010. Its net profit increased by 137% q-o-q to RM49.8 million on the back of a marginal 1.1%-increase in turnover to RM70.5 million. Compared to the previous corresponding quarter, Measat's bottom-line turned around from a net loss of RM41.5 million (in QE31/3/2009) while turnover was up 30.4%. The improved bottom-line was attributable to forex translation gain of RM41.7 million. If the impact of the forex translation gain is excluded, Measat's net profit would still be up by 42% to RM12.5 million.


Table 1: Measat's last 8 quarterly results


Table 2: Measat's adjusted profit for QE31/3/2010 cf QE31/12/2009 (Source: Link to the filling on Bursa Malaysia)


Chart 1: Measat's 12 quarterly results

Valuation

Based on Measat (closed at RM2.93 on Friday) is now trading at a PER of 23 times (based on annualized, adjusted net profit of RM12.5 million fro QE31/3/2010). At this multiple, Measat is deemed fully valued.

Technical Outlook

Measat has strong resistance at RM2.90-3.00. Its support is at RM2.40-2.50.


Chart 2: Measat's week chart as at May 17, 2010 (Source: Tradesignum)

Conclusion

Measat is deemed fully valued at the present price. As such, it is a good idea to take profit on this stock.