Wednesday, May 29, 2013

DLady- Top-line and bottom-line slipped

Result Update

For QE31/3/2013, DLady's net profit dropped 14% q-o-q but rose 6% y-o-y to RM29 million while its revenue dropped by 9% q-o-q or 4% y-o-y to RM206 million. The decline in revenue was contributed by lower sales of powder and liquid products. This in turn led to lower bottom-line when compared to the immediate preceding quarter.

Table: DLady's last 8 quarterly results

Chart 1: DLady's last 20 quarterly results


DLady (closed at RM48.50 yesterday) is now trading at a PE of 25 times (based on last 4 quarters' EPS of 195 sen). With the earning growth rate slowing from 50% a year ago to 16%, DLady's PEG ratio is now well over 1 times. Thus, the valuation for this stock is deemed expensive.

Technical Outlook

DLady is still in an uptrend line with support at RM45.00-45.50. If the share price were to break below this uptrend line, DLady will then move sideway, with support at RM40.00.

Chart 2: DLady's weekly chart as at May 29, 2013_12.30pm (Source: Quickcharts)


Based on demanding valuation, DLady is to be avoided. Since the stock is still in an uptrend line, those holding the stock may choose to SELL INTO STRENGTH for now.

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.

1 comment:

leslieroycarter said...

Expensive but still got retailers chased after the stock without looking at all the important parameters?