Muar Ban Lee Group (MBL) is a manufacturer of oil seed crushing machinery. MBL has successfully completed many oil seed crushing plants for major plantations and oil mills throughout the world. For further details, one may visit its webpage: www.mbl.com.
Fundamental Analysis:
Table 1: Income data of MBL.
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |
| Revenue (mil) | 55.1 | 44.1 | 25.4 | 41.4 | 40.9 | 34.2 | 24.1 |
| Net Profit (mil) | 12.2 | 7.2 | 8.6 | 8.0 | 8.0 | 6.7 | 4.1 |
| Profitability (%) | 22.2 | 16.4 | 33.9 | 19.3 | 19.5 | 19.6 | 17.2 |
| PER | 4.7 | 7.8 | 6.7 | ||||
| Total Borrowings (mil) | 0 | 0 | 0.2 |
From Table 1, MBL can be considered as a fundamentally sound company that deserve further attention. Its net profit has been increasing steadily from 2005 to 2011, albeit experiencing a slight drop in year 2010. Furthermore, the profit margin of about 20%-30% and zero borrowings are another attractive features that deserve serious attention into this stock.
Technical Analysis:
Figure 1: Historical price of MBL (source: www.tradesignum.com)
The stock is currently traded above its 20day MA line. Currently, the width of the Bollinger Band is experiencing marginal changes, indicating that the stock is experiencing a consolidation mode. Its immediate support is ~ RM 0.85.
Recommendation:
MBL is going to release its 1Q 2012 result soon. Considering its current PER (~7.0), this stock is very attractive for long term investment. However, by considering the current outlook of the global financial market, we should not trade heavily on this stock unless its PER has reached to its historially low value (<5). Let's wait for its 1Q 2012 result and we shall come to a more solid conclusion on the investment plan on this counter.
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