MPHB doing good in gaming division

FY30/9/10
Financial Result
Compare to same quarter last year, MPHB revenue stay flat at RM850.7m. However, PBT jumped 105% to RM138.06m from RM67.24m. Lets have a look at the result of each division.

• Gaming division contribute 91% of company's revenue. Current quarter, its net profit is up RM76.3m to RM89.1m from RM12.8m last year. 4D Jackpot which launched in September last year, lower prizes payout ratio and reduced financial cost contributed to this substantial increase.
• Stock Broking division's PBT increase 34.8% to RM6.2m mainly due to debts recovery and higher net gain from proprietary trading. 
• Financial Services division drop slightly to RM17.7m from RM18m. This is mainly due to write back of provision for impairment of investments in previous corresponding quarter.

In summary, company current quarter's net profit up 67% to RM86m from RM51.6m on 3Q09. Which translate into EPS RM0.081.

Technical Outlook
Support at RM2.12. There are three hurdles pass, as R1 has been broke. R2 was broke a few weeks ago, but it pulled back very quickly. Break above R2(RM2.18) in short term is crucial for this uptrend to continue.

Stock Valuation
Base on EPS RM0.30(ttm) and today's closing price RM2.18, it is trading at P/E 7.2x. With this multiple, i think MPHB is very cheap.

Overall
As we can see, company's revenue has been largely coming from its gaming division(91%). And as we all know, NGO business is a sure profit business and the cash generate will only become bigger and bigger like avalanche . As long as company operating as it is right now, this is only going to be our ATM.