MAGNI (7087) - MAGNI: Earnings Rebounded

MAGNI (7087) - MAGNI: Earnings Rebounded

Results Update

For QE31/7/2016, Magni's net profit rose 25% q-o-q or 51% y-o-y to RM23.5 million while revenue rose 40% q-o-q or 40% y-o-y to RM271 million. Revenue increased q-o-q due to 48%-increase in sales for garment segment but a slight 2%-drop in sales for packaging segment. PBT increased by 29% q-o-q due to 33%-increase PBT for Garment which was mainly due to higher revenue and higher currency exchange gain, partially weighed down by higher operating expenses while PBT for Packaging dipped by 14.3% which was mainly due to the cumulative effect of lower revenue and higher operating expenses.

Table: Magni's last 8 quarterly results

Chart 1: Magni's last 30 quarterly results


Magni (trading at RM4.15 last Thursday) has a trailing PE of 7.5 times (based on last 4 quarters' EPS of 55.35 sen). Its last 2 years' earning CAGR was at 45%; giving the stock a PEG ratio of 0.2x. At this PEG ratio, Magni's valuation is still very attractive. 

Technical Outlook

Magni is in a long-term uptrend. There are negative technical reading; MACD has just crossed below its MACD signal line and ADX has hooked down. Both are signaling a possible correction in the near term.

Chart 2: Magni's monthly chart as at Sep 15 2016 (Source:

The weekly chart shows that Magni is moving in a gradual downward channel, with support at RM3.80 & resistance at RM4.40. MACD looks poised to cross above the MACD signal line. 

Chart 3: Magni's daily chart as at Sep 15 2016 (Source:


Based on good financial performance and attractive valuation, Magni remains a good stock for long-term investment.


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MAGNI (7087) - MAGNI: Earnings Rebounded