Wednesday, November 28, 2012

DLady- bottom-line continued to impress

Results Update

For QE30/9/2012, DLady's net profit increased by 7% q-o-q or 36% y-o-y to RM32 million while revenue increased by 3% q-o-q or 11% y-o-y to RM225 million. from Chart 1 below, we can see that DLady's outstanding is due to rising revenue & profit margin. This means that there is still room for the earning growth for this company.

Table 1: DLady's last 8 quarterly results

Chart 1: DLady's last 18 quarterly results 


DLady (closed at RM44.30 at the end of the morning session) is now trading at a PE of 24 times (based on last 4 quarters' EPS of 184 sen). While the PE is high, the PEG (PE to Growth) ratio is about 0.8 time, which means the stock is still reasonably attractive. The only concern is that the company's growth may not be able to sustain at 30%.

Technical Outlook

DLady corrected back to its 100-day  EMA line or its 20-week SMA line. If this support is not violated, DLady would recover from this support.

Chart 2: DLady's daily chart as at Nov 28, 2012_12.30pm (Source: Quickcharts)

Chart 3: DLady's weekly chart as at Nov 27, 2012  (Source: Tradesignum)


Based on continued good financial performance, reasonable valuation & positive technical outlook, DLady could be a good stock for long-term investment.

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Dlady.

No comments: