Stock Commentary: Raslag Q1 profit up only 2% despite 15% revenue growth y/y

Raslag [ASLAG 1.77 1.14%] [link] disclosed its unaudited interim fiscal benefits for Q1/22, the place it discovered that it recorded 15% a lot more revenue y/y than in 2021, and produced a 2% larger net revenue.

The corporation famous that, without the need of 1-off merchandise (like expenditures connected to the IPO), ASLAG’s net profits would have been up 51% y/y. In its push release, ASLAG was optimistic about potential revenues at the time the company’s “Raslag-3” challenge commences commercial operations.

ASLAG also claimed that it was searching at “cost-economical financial debt financing” for its upcoming spherical of assignments.
 

MB Base-LINE

ASLAG might be a renewable strength stock with a trustworthy foundation of expanding earnings, but the stock’s cost motion has been heavy. Not heavy like “heavy obligation good”, but major as in droopy, saggy, with sluggish, laborious gains and swift, all-natural drops.

The place would this inventory be without the stabilization fund, which will expire in 3 weeks’ time?

The place would this stock be if it did not have a somewhat big cohort of retail IPO buyers who received stuck in this stock at P2.00 and that may just be ready for the inventory to tick up just a little bit earlier mentioned that price to get out?

Both equally of these issues make me anxious for ASLAG’s in the vicinity of-expression functionality.

The inventory could shock, but the sentiment (which is driving more appropriate now than the quantities) appears to say that it won’t. 

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Merkado Barkada’s thoughts are provided for informational needs only, and should really not be deemed a suggestion to buy or provide any particular inventory. These every day content are not up-to-date with new details, so just about every investor must do his or her own because of diligence just before buying and selling, as the information and figures in each and every distinct write-up might have adjusted.