Result Update
For QE31/3/2015, DLady's net profit increased by 34% q-o-q or 99% y-o-y to RM34 million while its revenue was mixed; dropped by 8% q-o-q but increased by 27% y-o-y to RM250 million. Revenue decreased by 8% q-o-q largely attributed to less selling days given the Chinese New Year festive period. Profit before Tax increased by 33% driven by lower Cost of Goods and lower Distribution Expense.
Table 1: DLady's last 8 quarterly results
Chart 1: DLady's last 32 quarterly results
Historical Financial Results
From the 16 years' P&L accounts, we can see that there were 3 years where earnings surged. These are 2004 (when PBT surpassed the RM20-21 million mark); 2009 (when PBT surpassed the RM60-65 million mark); and possibly 2015 (when PBT surpassed the previous all-time high of RM186 million). These are highlighted in the table below (in green).
Table 2: DLady's last 16 years results
In the previous 2 occasions (2004 & 2009), the share price rallied strongly. Since the current breakout in earning (surpassing 2013 high), the chance of the share rallying is fairly good.
Chart 2: DLady's 16 years' Results & monthly chart as at April 25, 2016
Valuation
DLady (closed at RM54.00 yesterday) is now trading at a PE of 22 times (based on last 4 quarters' EPS of 247 sen). At this PER, DLady is deemed fairly attractive. Its DY is fairly decent at 4.1%.
Technical Outlook
We can see that DLady broke to the upside of its trading range of RM45.00 & RM49.00 in early 2016.
Chart 2: DLady's weekly chart as at Apr 25, 2016 (Source: Tradesignum)
DLady is in along-term uptrend line (SS), which accelerated since 2009 (s1-s1).
Chart 2: DLady's monthly chart as at Apr 25, 2016 (Source: Share Investor)
Conclusion
Based on improved financial performance, attractive valuation & positive technical outlook, DLady is rated a 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.
DLADY (3026) - DLady: Quarterly Earnings At New High
http://nexttrade.blogspot.my/2016/04/dlady-quarterly-earnings-at-new-high.html
