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During the lunch break, TM announced its results for QE31/3/2019. Its net profit rose 342% q-o-q or 96% y-o-y to RM308 million. Revenue dropped 10% q-o-q or 2% y-o-y to RM2.779 billion. As at 3.30 pm, TM share price rose 61 sen (or 22%) to RM3.33.

Table 1: TM's 8 quarters' P&L

Looking at the slightly weaker revenue and the big jump in profits which came after a big drop 2 quarters ago, the excitement about TM's performance looks unjustified.

Graph 1: TM's 45 quarterly P&L

On the other hand, BAT has undergone the opposite treatment when it announced its result for QE31/3/2019 after market close on May 28. On opening the next day (May 29), BAT (closed at RM33.44 the day before) started dropping. As at 3.30 pm today, BAT was trading at RM28.94. In total, BAT lost 13.5%.

Table 12; BAT's 8 quarters' P&L

Graph 2: BAT's 45 quarterly P&L

In my opinion, TM is over-rewarded for the "good" result while BAT is over-punished for the "bad" result.

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