For QE30/6/2015, DLady's net profit increased by 186% q-o-q or 101% y-o-y to RM49 million while its revenue increased by 41% q-o-q or 4% y-o-y to RM278 million. PBT increased q-o-q due to improved revenue and lower raw material prices while the sequential increase in revenue was due to the new relaunch of Dutch Lady Children Formula Milk.
Table: DLady's last 8 quarterly results
Chart 1: DLady's last 29 quarterly results
Valuation
DLady (closed at RM45.80 yesterday) is now trading at a PE of 22 times (based on last 4 quarters' EPS of 200 sen). At this PER, DLady is deemed fairly attractive. Its DY is fairly decent at 4.8%.
Technical Outlook
Since October 2012, DLady has been moving sideways around RM40-48. Its indicators gave mixed reading, with monthly MACD hooked down. A breakout of the trading range of RM46-48 will point the way forward for the stock.
Chart 2: DLady's monthly chart as at Aug 24, 2015 (Source: Share Investor)
Conclusion
Based on improved financial performance and attractive valuation, I would revise DLady's rating from REDUCE to BUY.
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.
No comments:
Post a Comment