DLady- yet another good quarter!

Result Update

For QE30/9/2013, DLady's net profit increased by 22% q-o-q or 32% y-o-y to RM42 million while its revenue increased by 6% q-o-q or 17% y-o-y to RM264 million. The improved in top-line and bottom-line was contributed by higher sales of powder and liquid products. The q-o-q increase in revenue was "mainly contributed by higher sales of powder and liquid products" while increased net profit was "mainly due to the higher revenue and lower operating expenses during the quarter".


Table: DLady's last 8 quarterly results


Chart 1: DLady's last 22 quarterly results

Valuation

DLady (closed at RM47.00 yesterday) is now trading at a PE of 22 times (based on last 4 quarters' EPS of 218 sen). With the earning growth rate of 18%, DLady's PEG ratio is at 1.2 times. As such, Dlady is deemed fully valued. However, its dividend yield is fairly attractive at 5.5%, making this a good income stock.

Technical Outlook

DLady is now moving in sideways, with upside resistance at the horizontal line at RM48.40-48.50.


Chart 2: DLady's weekly chart as at Nov 26, 2013 (Source: Quickcharts)

Conclusion

Based on good financial performance & attractive dividend yield, DLady may be a good income stock. However, its upside potential may be limited as it is already trading at a demanding PE multiple.

Note:
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.