Petdag recorded a q-o-q decline in net profit

Results Update

Petdag's net profit declined by 8.6% q-o-q but rose 4.5% y-o-y to RM208.7 million while turnover increased by 18% q-o-q or 38% y-o-y to RM7.540 billion. The q-o-q decline in net profit was attributable to lower gross profit margin.


Table: Petdag's last 8 quarterly results



Chart 1: Petdag's last 13 quarterly results

Technical Outlook

The stock is still in an uptrend, albeit some profit-taking over the past few weeks. However, you may notice the bearish divergence in both the MACD and RSI indicators, which could be signaling a top in the stock.


Chart 2: Petdag's weekly chart as at August 11, 2011 (Source: Quickcharts)

Conclusion

Based on the weakening in the technical indicators and the q-o-q decline in bottom-line, my earlier recommendation to sell into strength remained.