DUFU (forwarded from Mr Tan Peng Lam)
Single Tier Final Dividend of 4.5 sen per share for the year ended 31 December 2017. The above Company's securities will be traded and quoted "Ex - Dividend” as from: 25 May 2018

At PE 9, the valuation would range from 1.26 to 1.35

At PE 10 the valuation would range from 1.40 to 1.50.

Thus at 1.13 closing, there is still room for profit.

Based on our engagement with Dufu Management in April 2018, we were guided that shipments would be stronger than FY 2017 and topline would grow in tandem with expected growth in nearline (high capacity) HDD shipments and based on forward orders received from customers. Sales would be exceeding RM200 mil based on outlook of its customers. This is despite RM to USD is 3.9264 compared to 2017 average of 4.1643 (a drop of about 6%) in Q4 2017.

The Co is also upgrading its plant and machineries to cater for new titanium material being used in spacer ring. In FY 2017, Co capex was RM5.3 mil and at 31 Dec 2017 there were RM3 mil capital commitments outstanding. The Co is expecting to spend another RM10 mil capex for expansion in 2018 for CNC machines and factory expansion. The Co is running out of capacity and in process of renting a new factory for expansion of its capacity for both HDD and metal stamping business.

Given Q1 2018 global nearline HDDs shipments increased by 27% compared to Q4 2017 (and when compared to Q1 2017, the increase is 98%) using Seagate and Western Digital Qtr reports, Dufu sales of spacer ring would increase in tandem. I am also guided by another HDD player of the strong sales in in Q1 and Q2 2018.

I tend to project Dufu Q1 FY 2018 volume of shipments would grow in region of 10% to 20% based on discussion with management given the capacity expansion in FY 2017 and FY2018. However, selling price would reduce by 6% given the average Ringgit vs USD Forex rate had dropped from 4.1643 in Q4 2017 to 3.9264 in Q1 2018.
For my estimate, I am using Q4 2017 sales of RM50.3 mil as base, I would expect sales to be ranging from RM53.1 mil to RM56.7 mil. The profit before tax would range from RM7.434 mil to RM7.938 mil (assuming PBT is 14% of sales, do not asked me why 14%) compared to Q4 2017 PBT of RM7.1 mil.

Assuming the effective tax rate of 21% (same as FY 2017 but rate could be lower due to the reinvestment allowance of Capex incurred in 2017 and 2018), I project the net profit after tax to be range of RM5.872 mil to RM6.271 mil giving an EPS of 3.5 Sen to 3.77. Extrapolating for the year FY 2018 EPS could range from 14 Sen to 15.08

The above valuation would hold if Co delivered the estimated turnover.

FY 2017 Historical Comment
For FY 2017 Dufu reported a PBT of RM 32.8 mil (RM 3 mil more than FY 2016 adjusted PBT of RM29.2). The PBT for Q1, Q2, Q3 and Q4 is RM8.2 mil, RM 9.2 mil, RM8.2 mil and RM 7.1 mil respectively.

Q4 earning is flat though turnover had increased mainly due to the strengthening of USD that had affected its margin

In Q4 2017 Dufu reported a PBT 7.1 Mil and a net profit of RM 6.4 mil with an EPS of 3.9 Sen for Q4 2017 and for the year the net profit is RM26.0 Mil with a EPS of 15.6

Prudently I am giving it a PE 9 to 10 and its valuation would range from RM1.40 to RM1.56 compared to its closing price of RM1.13, a potential gain of 23.9% to 38%

IDSS trades 280 doesnt have YKGI, in other words, this counter is not allowed to short selling...

is this a good news or a bad news?
sitia and easyinvest123, can u guys explain more regarding on this announcement, just to clarify and give a clear image to the public and investors like me, thanks.

can i know why dsonic will be suspended and edaran will be limit up and where you get the info that dsonic going to acquire edaran? thanks =)

http://www.theedgemarkets.com/article/malaysia-parliament-sitting-starts-monday-ahead-ge14

no worries, i will lodge a report and send this information to the IB as i had printscreen the mislead information that given by Turbochart.

the TP that given by turbochart might be false. I will update you guys that the TP from all the IB and if the TP that given by turbochart was fake. I will lodge a police report and inform the IB to take legal action on him. Even though he delete his id or whatever, he will be tracked and caught as well. This is the world which is connected. Good luck and all the best in investment, all of you =)

The global market sentiment was not good. Even though operators want to push, retailers also will sell their stakes. Patient is the key to success in stock market. Operators will not push every day and let all of you win their money, and put them on the losing side.

The only thing that u can do is buy whenever there is a correction to reduce your risk instead of chasing high. By doing this, only will lead you to a successful pathway in the stock market.

Today buying rate for DSONIC was just 40%, in other words, most of the people are selling at the bid price. However, the price was well supported at RM1.00-1.01 which is the support of this counter despite poor market sentiment. Operators and Value investors are blocking, queueing up for your ticket as you can see, millions of ticket bidding and waiting for your ticket, which includes me.

Hope you guys have a nice day and happy Chap Goh Mei, best wishes from me =)

Datasonic Group Berhad
QoQ Revenue dropped, YoY increased, gross profit margin and net profit margin improved.

Revenue dropped mainly due to lower revenue contribution from the supply of consumables, passports and personalization services in this Q3.

Prospect:
“We are pleased with the performance for this quarter as compared to the corresponding period last year. We are optimistic on the business outlook and future growth of the group, especially for financial year 2019 onwards,” its group chairman General Tan Sri Mohamed Hashim Mohd Ali (Rtd) said in a statement.

Let me further some of the key highlights that he did not mention and why they are very optimistic and using the word "especially for FY19 onwards",
1) During the 9th AGM, they mentioned they entered Tanzania market by purchasing 67% stake into Tanzania border control-related security contract. This will their first move abroad and they have identified, Africa as having massive potential for growth especially within the data and microchips segment. This deal could bring in earnings accretion of RM10 million to RM15 million per year over eight to 10 years.
2) They will be partnering with Perum Percetakan Negara Republik Indonesia (PNRI) via a joint venture (JV) to enroll respective banks to be identified into the national printing body in Indonesia. As of now, they have estimated about 100 million [smart] card circulation in Indonesia, to assist them to migrate into EMV-based solutions as mandated by their central bank, and this Smart card business will start to contributing in FY19.
3) The orderbook as at 31 December 2017 stands at about RM750 million (latest QR), which is expected to last about five years. The next coming few months, they are some big projects to be awarded and they are highly competent in winning these big projects. How much they can secure, I have no idea. However, according to Chew Ben Ben , he said he is very confident and anticipating its total order book numbers to "surpass" RM1.3 billion.

Insiders actions:
1) Chew Ben Ben owned 0.27% of direct interest back in 2013 January 14, and currently, he holding 13.405% and 11.596% (Latest as 28 February 2018) of direct and indirect stake respectively.
2) Abu Hanifah bin Noordin remains the largest shareholder with 15.1% of direct interest.
3) Top 10 largest shareholders included Lembaga Tabung Haji, Phillip Capital Management Sdn. Bhd., CIMB-Principal Asset Management (S) Pte Ltd, and Public Mutual Bhd.


Disclaimer: Not buy call or sell call, I will not responsible on any of your loss. This is just my 2 cents opinion. A quote by cold eye, "if a stock is growing, hold it. If a stock is waning, sell it."

Thanks for the sharing, all sifus here. Appreciate that ;)

https://klse.i3investor.com/blogs/DJI_FBMKLCI/146244.jsp

thanks for sharing @ahpeng95

good evening, all of you. Good to see you guys earning money and laughing all the way out the bank. It's not easy job to push billions of net worth company, next week more to come. Once break the crucial resistance level at 1.25-1.26, the price will move upward like a rocket.

For technical wise, can refer back to my previous blog: https://klse.i3investor.com/m/blog/MBSB_finance/145946.jsp

good luck and have a nice weekend, guys :)

@orange88,

Agree with you on the RM1.40, but I think should worth more than that after the merger deal done before 1st quarter of 2018. I think should worth at least 1.50 and above. There are too many upsides for this company compared to the downside and huge potential to be an RM10 billion market capital company in Malaysia.

@orange 88,

Yea, it's illegal, especially in US and Hong Kong market, due to their SC. But in our bolehland, anything can happen. Malaysia market is too easy to manipulate, as long as you got the power and money. By the way, just my 2cents, i dont want to touch any political issues here =)

Good afternoon, all of you here.

okay guys, i saw there are a lot of argument from you guys which are not mature, by the way you guys should enjoy your holiday and be happy at this moment.

Lets put it this way, can you guys think about why they want to press down the price before the QR release? It's very simple, accumulation. Refer back to the chart, there are 2 weeks of blocking and accumulation that carried out by big boy.

Another question, accumulation for what? it's very simple as well, to push the price for distributing and earning profit. They will not buy and keep for their son.

Accumulation and distribution only will made the chart fluctuate, up and down on an uptrend or downtrend, if not the price will be stay sideway.

https://klse.i3investor.com/m/blog/MBSB_finance/145946.jsp

https://klse.i3investor.com/m/blog/MBSB_finance/145945.jsp

No ban on palm oil, says France
The Malaysian Insight

https://www.themalaysianinsight.com/s/34929/

IPO price rm4.55 per share. How many percent / money had lose by felda settlers? who is the big winner in this case? GE is coming nearer, if government want their ticket, they have to help these felda settlers. By the way, just my 2cents.

The question is not the disposal from KPF, but who the hell so dare to collect FGV from them?

https://klse.i3investor.com/blogs/PalmOilInPlayDespiteStrongerRM/145651.jsp

https://www.thestar.com.my/news/nation/2018/01/27/hishammuddin-to-raise-palm-oil-issue-during-meeting-with-french-counterpart/

guys, strictly apply cut loss if you plan to hold short term. However, if you plan for long term, current price was very attractive, but current price might went lower and lower, collect bid by bid. Just my 2cents.

http://www.themalaymailonline.com/malaysia/article/complete-switch-to-new-passport-booklet-in-feb-says-dpm

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi shows off the new Malaysian passport as he tries the auto gate machine with the facial recognition technology during his visit to Datasonic Group Berhad

to make sure the trend continues moving upward is to break the resistance at these 2 key levels, 1st at 1.24, 2nd at 1.29. Once break 1.3 level, this counter will be super bullish.

Yes, agree with that statement whoever wins the coming GE, Dsonic also will continue to get contact not only in Malaysia but in ASEAN. The coming quarter report will be superb as if you guys did collect every information that related to Dsonic, then you know what am I talking about.

Datasonic Group

Technology | Hardware & Equipment

2QFY18 review. 2QFY18 core earnings of MYR20m came in higher on both QoQ and YoY basis, thanks to stronger orders for MyKad (1.2m units for 2QFY18 vs 0.8m and nil in 1QFY18 and 2QFY17 respectively). The group delivered approximately 50,000 units of its in-house printed passport books during the quarter, following the commencement of its full production line in mid-Sep. A second interim DPS of MYR0.01 was declared, bringing its 1HFY18 DPS to MYR0.02, at an implied payout ratio of 76.9%.

3QFY18 outlook. Management highlighted that its passport book production line is running at full pace with an average output of 50,000 per week currently. This would likely lead to a stronger 3QFY18, assuming stable MyKad orders at 0.8-1.0m units per quarter. Management however pointed out that Dec 2017 would likely be a shorter working month due to the seasonal holidays. We expect orders to resume in Jan 2018. As a side note, management is looking to wrap up the auto-gate maintenance contract worth MYR10- 15m pa. The group is looking to roll out the next-generation auto-gate systems with two-stage authentication and facial recognition.

Earnings and risks. We trimmed our FY18F EPS by 11.4%, factoring in a potential slowdown in orders for Dec 2017 due to the aforementioned factor. That said, we expect earnings momentum to gain further traction in 2HFY18 (vis-à-vis 2QFY18) driven by higher earnings accretion from its passport book division. We leave our FY19F-20F EPS unchanged for now. Key risks include a prolonged slowdown in MyKad orders, fluctuations in orders for its passports, and competition from local peers.

Maintain BUY. We continue to like Datasonic, given its unique status as the largest security solutions provider in the country. We maintain our BUY recommendation, with our TP revised to MYR1.91 following our earnings revision and based on an unchanged 25x 2018F P/E.

By RHB Research

Today is T4 for Airport, big ticket still inside. MACD indicates strong uptrend and might test new high. MFI and RSI was having slightly and healthy correction in the last 4 trading days. Immediate support at RM8.83, TP RM9.41 and new high.

RHB closed with an abandoned baby in an uptrend. Next monday likely to open lower. MACD indicates uptrend, MFI and RSI was showing strong buy. Immediate support at RM5.12, if can stable above RM5.12. Next week likely to test RM5.29 and above.

KRONO as expected going lower. MACD shows downtrend, MFI indicates weak buy and RSI was below 30%, which is oversold. Based on the fibonacci retracement, the price might test rebound at RM0.835 (50% retracement) but the signal was not strong. I opine that the price will further test 61.8% of retracement and 78.6% of fans retracement before a strong rebound on earlier to mid Feb, which is zone RM0.73. Noted if break these key support level, the price might further test RM0.585.

Dsonic closed with a doji on T8 with a very less volume. Price movement was very stable at above RM1.22 which is the support of this counter. MACD was showing uptrend and not searching for deadcross yet. MFI and RSI remained 80% and 60% respectively which indicates buy. Next week might trend upward and break RM1.29 resistance level. As long as this counter was stable at current level, the return is bonus. Strictly apply cut loss once break RM1.22 with volume. Immediate TP was at RM1.33 followed by RM1.47.

Krono today huge ticket going out, MFI and RSI was lesser than 40%, which indicates this counter was strong selling. MACD was showing downtrend. Recently test to rebound on 61.8% of fibonacci fan, but failed. Now heading to the 78.6% zone, which is 70sen to 80sen, if failed to rebound. Last support line at 585sen. No tp was given as this counter was super bearish at the meantime. Just my 2 cents.

tomorrow dsonic T8, recently big ticket doesnt seems going out much instead huge ticket is going in and defending the price from further downward. Directors acquire small bid in the past few days, while the LTH was disposing millions ticket. But noted that even though LTH was disposing with such huge ticket, the price was steadied at current level. All the technical indicators show that this counter was having a healthy correction, due to the overheat surging since the huge volume came in at RM1.17. MFI and RSI remains 50% above, still remain strong buy. MACD showing uptrend and not searching for deadcross yet. immediate TP was at 1.33 followed by 1.47.

Counter is still in accumulating mode, will take off once the accumulation is done. Monitor closely for buying opportunity.

chart wise, it just breakout from triangle with volume, buying interest was strong with big money inflowing. Resistance lvl will be at 1.24, This week TP RM1.30.

be patience guys, this counter is an election theme related counters, there are few related counters like drbhcom, myeg etc had already start their engine, you guys can start accumulating slowly, i can confirm you guys will get a handsome profit. just my 2cents.

yes it is, @mkjanvij... but if you are new in call warrant, its better stay off and learn first. You also may check malaysiawarrants.com for the Macquarie Bank Live Matrix on C5...

cd should worth at least 0.025 based on current mother price, its undervalued.

Hi Mr Tan, Here is my stock pick for 2018.

1. Ekovest-wb 20%
2. Dayang 20%
3. Leonfb 20%
4. m3tech 20%
5. mbsb 20%

Thank you =)

yes, agree with superpanda, everything that share in i3, is just recommendation, but the decision maker still in your hand.. i dont think you guys are still childish right, who want ppl bear your risk... be appreciate when people share their homework with you...

If you saw this kind of message which is against the security commission Malaysia acts and regulations, you guys can go and report. Print screen its details even though no real name or identity appealed. The authority can find him or her through IP address or VPN. Just do your part as there are a lot of people spreading fake rumors which are threatening our lives and hard earned money.

no worries.. hike in gas price will not affect their cost, as they r using blast furnace... noted that, the raw material that imported was become more n more cheaper, therefore i foresee cheaper cost and higher revenue in near terms...

https://www.thestar.com.my/business/business-news/2017/12/02/can-steel-stocks-maintain-their-momentum/

annjoo cd left 2 transaction days, after the suspension of cd, price probably will start moving...

all big 4 drop today except Annjoo..

hmm any shopping mall or high rise building is less than 1mil? if got pls tell me

i thought he says ＂假设＂, but thats not the main point that he want to bring. I think he want to bring us a message whereby anyhow the coming qr also will "at least" produce better revenue and at least eps of 8sen and which give yearly eps to 40sen. By using EPS of 40sen x PE of 11times, the fair value of this company at least RM4.40.

PROSPECT
The global steel market, and the long product segment in particular, witnessed a surge in steel
prices since the beginning of the second half of the year (“2H17”) given the China government’s
continued efforts to curb steel capacity and, importantly, the elimination of induction furnaces. For
the remaining period of 2017, the Group remains optimistic about its prospects given the following
fundamental drivers:
a. Global steel supply is expected to be affected by:
i. Potential output cuts by Chinese steel mills over winter; and
ii. Potential production constraints faced by electric arc furnace operators globally given
shortages in graphite electrodes worldwide.
This expected demand-supply imbalance should enable the Group to be in an advantageous
position as a hybrid Blast Furnace-Electric Arc Furnace (“BF-EAF”) operator with high
degree of operational flexibility. The Group’s cost competitiveness will continue to drive its
cost-leadership in the construction steel sector.
b. The expected upturn in construction steel demand from infrastructure and large-scale property
development projects in Malaysia and most of the ASEAN countries, which are expected to
ramp up in the latter part of 2017. Nevertheless, shortage of foreign labour remains a potential
issue for the construction industry which may temporarily affect domestic demand for
construction steel. The Group remains highly responsive to market changes and agile in sales
mix and, in event of temporary lulls in domestic demand, the Group is able to rapidly increase
its exports to meet regional demand.
c. Decreased import tonnage of billets from China given high domestic prices and ample
infrastructure-driven demand in China. The Group is well positioned to capitalise on export
market opportunities within Asean region given large regional demand, fluctuating China
supply and prolonged lead time for supply from Middle East and other regions.
Given the fundamental drivers mentioned above and continued enhancements in operating
efficiency, the Group’s performance is expected to remain satisfactory for the remaining period of
2017.

QR is expected to be announced on 17 november 2017, based on a source. Market sentiment is weak but Annjoo's share price still can perform with uncharged.
Eventhough cannot compare with Lionind which said by someone just now, but please note this, annjoo cannot perform like lionind due to their high number of call warrant.
My prediction of coming QR for this annjoo is quarter preceding year and year on year also will improve. Share price will moved once result released. No TP for this counter as there are still many pies that can eat by Annjoo once the infrastructure project starts, But RM4.50 confirm not a dream.

Banker is inside, this counter looks like will rally upward as there are not much of volume selling out since 6 october 2017. This week will be the budget week and construction counter may benefit from the budget announcement. Cheers!