AMBANK's result for QE31/12/2016 (3Q17) was released on February 24. That quarter saw AMBANK's net profit dropped 15.4% q-o-q but rose 4.3% y-o-y to RM313 million. Revenue dropped 5.8% q-o-q or 6.5% y-o-y to RM1978 million.
Table: AMBANK's last 8 quarterly results
Graph 1: AMBANK's last 22 quarterly results
Notwithstanding the dip in its earnings for QE31/12/2016, AMBANK's annualized earning for FY2017 is expected to be slightly higher than FY2016.
Graph 2: AMBANK's last 12 yearly results
AMBANK (closed at RM4.99 yesterday) is now trading at a trailing PER of 11.9x (based on last 4 quarters' EPS of 42 sen). At this PER, AMBANK is deemed fairly valued.
AMBANK is now testing its intermediate downtrend line, RR at RM5.00. If it can break above this line, AMBANK could begin its next upleg.
Chart 1: AMBANK's weekly chart as at Mar 7, 2017 (Source: MalaysiaStock.Biz)
AMBANK dropped from a high of RM8.00 in 2013 to a recent low of RM4.00. It tested its long-term uptrend line support at RM4.00 before recovery.
Chart 2: AMBANK's monthly chart as at Mar 7, 2017 (Source: ShareInvestor.com)
Based on satisfactory financial performance & tentative signs of earning recovery, AMBANK could be a good stock for a recovery play.
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