This is considered a serious accusation. I would suggest you buy 100 unit and attend the next AGM meeting if you really want to prove you are right.
As of now the company still registers free cash flow of 9M in Q3 which used in paying dividend, buy back share and pay down debt. Company borrow additional 4m which I think is to balance up the free cash flow and financing activities. cash balance does not really increase from last year due to the increase of inventory, receivable and investment.
Company paid 7 cents dividend in 2018 that is before the Nov result. if cash flow continue to be good meaning no problem of customer payment from the increase receivable, we should expect increase of div payout in March 2019. of course, it may be a bit too late to wait until March 2019.
With cash balance of 37M, buying a piece of land of 7M consider quite reasonable to me. Another thing to note is that Its biggest customer is Seagate and as of Nov result, Seagate still registered strong earning.
Anyway, next Q (feb 2019) will see what happen to the receivable and the inventory.
Calvin, Are u sure the way you compare is correct, the increase of receivable must always equivalent to increase of cash? Can you use Vitrox to prove your case then?
Year 2018-Sep, 2017-Sep Inventories 105,410 71,784 Trade and other receivables 148,191 123,863 Financial assets at fair value through profit or loss 0 1,046 Prepayments 4,673 3,192 Current tax assets 770 1,542 Cash and cash equivalents 134,583 150,572
Vitrox Inventory increase from 71M to 105M, receivable increase from 123M to 148M but cash reduce from 150M to 134M
Calvin, what is the problem on higher receivable if you having good business? Everybody know receivable is not cash. Dufu do have previous few quarter record on uneven general and administration expenses. And what is the problem if you have higher inventories? Inventories doesn't mean purely finished goods, it might be raw material as well which probably to cater higher demand in the next quarter. Lastly, Dufu is specialist in manufacturing precision machining parts and component, any problem for the company to diversify? and USA is not the only client in the world for China, client for China is all over the world.
Calvin, I am not interested in any company but I wanted to know is your accounting statement correct whereby if receivable increase YoY, the cash balance must also increase YoY. If not then this is a categorized as falsify the profit?
I can easily find companies that has the increase of receivable YoY but cash balance even reduce YoY.
You must not wrongly advise people if your statement cannot hold water.
@calvin, Jeff was asking you how do you justify the trade receivable has been booked into profit? After looking at the balance sheet, i still couldn't see it can be done.
It stated clearly the revenue is RM66,895m. The cost of sale is RM41,687m. Hence, the balance will be gross profit. Cash/bank balances has nothing to do with profit/losses. It just mean cash inside the bank.
Calvin is making an assumption that if a share price spike after the result couple with major shareholder selling and coincidence that the cash balance doesn't increase in tandem with the increase of receivable then this will be a pump and dump stock. In fact, receivable is part of the revenue not profit. There is no way a company can recognize the receivable as profit. Of course if the payment defaulted then it will be a total lost and if payment delay, cash flow will be impacted but not profit unless provision.
So for DUFU case, it is still too early to confirm that the increase of receivable is cooked or non existence and will result in total lost/write off in the coming quarter. In 9 months period in 2018, DUFU registered increase of revenue of 48M compare to the same period in 2017. Now the question is that it is reasonable for the receivable increase to 17M?
Goh Kim Hock @calvin, Jeff was asking you how do you justify the trade receivable has been booked into profit? After looking at the balance sheet, i still couldn't see it can be done.
It stated clearly the revenue is RM66,895m. The cost of sale is RM41,687m. Hence, the balance will be gross profit. Cash/bank balances has nothing to do with profit/losses. It just mean cash inside the bank. 24/11/2018 23:31
Let me summarise the figures
1) Revenue is RM66,895m.
2) Cost of sale is RM41,687m
3) Gross profit is Rm25.208 Mil
4) Net Profit is Rm19.312 Mil (after deducting other admin expenses)
NOW WHERE IS THE RM19.312 MILIONS NOW?
ANSWER:
a) IS IT CASH INSIDE THE BANK AS MONEY COULD BE WIRED DIRECTLY From Bank to Bank?
b) IS IT REAL CASH KEPT INSIDE THE DUFU FACTORY SAFE NOW?
c) Or Is It Ringgit Notes Kept Inside DUFU' BOSSES CAR BOOT Or Home (BN claimed to have kept Billion Rm in Najib house)
d) IS IT PROFIT WHICH HAVE YET TO ARRIVE IN DUFU'S CUSTODY (In this case it is still Under Receivables or IOU)
e) Or none of the above as Cash status or position cannot be known now?
It is (D).....but to be fair to dufu...their cash flow look ok...i briefly look at 4 years cash flow, all of them book in positive operating cash flow with reasonable working capital...the spike in receivable just happen this quarter...i guess may be too early to conclude something bad...
i also miss out dufu due to its directors misuse company fund case in 2016...haiz...if not of that case probable i win big already...no confident in crook management.
Calvin is accursing Dufu cooked their book doing a conman job to cheat the investors. Agree with Jeffbkt this is a serious allegation. Will Dufu management sue Calvin for defamation if the allegation is wrong or just ignore it as Calvin is a nobody in a forum.
calvintaneng, i dont want comment on your conspiracy theory. Maybe real, maybe rubbish talk.
But your accounting explanation is totally nonsense and wrong. You dont look like you know basic accounting but want to write article that include accounting technicals?
If you real intention is to warn people, maybe remove the accounting technicals and focus on your conspiracy theory.
brainless article calvintaneng - if you look back, he only invested in loss making copanies like berjaya corp, and some property companies, all share price crash! lol
Posted by i3Value > Nov 26, 2018 02:19 PM | Report Abuse
calvintaneng, i dont want comment on your conspiracy theory. Maybe real, maybe rubbish talk.
But your accounting explanation is totally nonsense and wrong. You dont look like you know basic accounting but want to write article that include accounting technicals?
If you real intention is to warn people, maybe remove the accounting technicals and focus on your conspiracy theory.
the only point he makes that makes sense is dufu has increasing inventories and pay receivables. however dont forget the revenue is increasing as well.
hes implying the 'illusion profit' is hidden under receivables. if u have proof please by all means do so. otherwise it only means that payment to them is not yet settled. i think its perfectly normal to have increase receivables when your revenue increase no?
u do know that its a serious crime faking receipt right? u think the auditor has the balls to sign if the receipt is not legitimate?
i have looked at all their receivables every quarter from 2011. they have high receivable at some point but they get their payment later on. i can post it in here for your good reference if you want. its perfectly normal to have credit notes and delayed payment for your regular customer.
its an issue if your revenue is stagnant and your receivable is piling up. this is not the case with dufu they are raking up their sales as well
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
calvintaneng
56,429 posts
Posted by calvintaneng > 2018-11-24 18:15 | Report Abuse
https://www.youtube.com/watch?v=YcltgTjGFWU