Posted by slts > 2018-01-04 10:30 | Report Abuse

Dufu is the cheapest tech stock.
just buy & wait.

Posted by RJ87 > 2018-01-04 14:12 | Report Abuse

Dufu is not a tech stock...it’s industrial product...they don’t own any “tech” and they are not selling any tech...

Their product are services in manufacturing bits and pieces of electronic component....

But from manufacturing standpoint, it’s still cheap...

Posted by lazycat > 2018-01-04 14:32 | Report Abuse

big data era need big data storage , harddrive is reliable and cheap

Posted by Miracle > 2018-01-04 14:40 | Report Abuse

Stuck at 1.22

Posted by UncleJohn > 2018-01-04 15:08 | Report Abuse

Suggest run.....start dumping....woohoo, can try q at 1.17

Posted by UncleJohn > 2018-01-04 15:24 | Report Abuse

Macam got support...cancel queue lo....

Posted by PW888 > 2018-01-04 15:55 | Report Abuse

This counter is not for contra player or short term investment

Posted by RJ87 > 2018-01-04 19:33 | Report Abuse

Uncle John, why bother queueing if u r not buying part of good business...got support then don’t want liao?

Posted by UncleJohn > 2018-01-04 21:51 | Report Abuse

Stock market rule no.1 , buy low sell high ma? U buy high u r at risk lo.....

Posted by RJ87 > 2018-01-05 08:42 | Report Abuse

For a good business, how high is high le?
For a bad business, how low is low le?

Risk is just a matter if you know what you are doing. If my information is correct, then, DUFU will report good earnings in Q2/Q3. But maybe not Q1. By that time, Uncle John is gonna say "got support at RM1.80, high risk". But Uncle John will forget that he once said that when DUFU is having a support RM1.17.

Posted by Jona0724 > 2018-01-05 13:36 | Report Abuse

normally Q4 are the best QR. Espected YOY will lower but QOQ increase. After QR ROE ard 20 and p/e 7.7%(EPS Y17=16, Q4=4.3). P/E below 8 but ROE 20 consider very cheap price.

Posted by UncleJohn > 2018-01-05 15:32 | Report Abuse

wait later start dumping at 4 ?

Posted by Peng1185 > 2018-01-05 18:37 | Report Abuse

Dufu going up trend.

Posted by shareinvestor88 > 2018-01-05 19:54 | Report Abuse

Peng1185 , can buy Dufu ? i think you have loaded on DUFU

Posted by Peng1185 > 2018-01-05 20:48 | Report Abuse

shareinvestor88, I have collected enough of Dufu already.
Now just c the show,
Thanks for ur reminder and let's enjoy the ride together

Posted by shareinvestor88 > 2018-01-05 23:20 | Report Abuse

Peng1185 You are right time to collect DUFU

Posted by Investee > 2018-01-06 13:05 | Report Abuse

@Peng1185 ur TP is?

Posted by shareinvestor88 > 2018-01-06 15:49 | Report Abuse

TP 2.05

Posted by Investee > 2018-01-06 18:45 | Report Abuse

Wow, 2.05 is kind of odd number. Why so? Based on P/E?

Posted by shareinvestor88 > 2018-01-06 19:04 | Report Abuse

Sorry The TP shud be 288

Posted by Investee > 2018-01-06 19:10 | Report Abuse

Huh? Rm288? That's ridiculous

Posted by shareinvestor88 > 2018-01-06 22:16 | Report Abuse

2.88

Posted by Investee > 2018-01-07 00:12 | Report Abuse

Nobody seems to be concern on ringgit Appreciation?

Posted by shareinvestor88 > 2018-01-07 00:16 | Report Abuse

The appreaciation is temporary.
Dufu profit is not based on strong usd

Posted by xiaoji > 2018-01-07 03:19 | Report Abuse

before Q1'17 results announce, everyone predict it will go beyong RM2,
then it dropped from RM1.65 to RM1.27 eventhough with better YOY result published...
so on what basis you say TP2.88 ?

Posted by RJ87 > 2018-01-07 03:40 | Report Abuse

PE 14 by capturing notion market share...
How much Notion drop = how much DUFU gain...

How about that?

Posted by Investor 9999 > 2018-01-07 08:58 | Report Abuse

DUFU

A Gem to buy before Mr Market rerate it upon Q4 announcement in February 2018.

My target valuation is using my projected FY17 EPS of 15.5 Sen with a PE 10 to PE 12 is RM1.55 to RM1.86.

Compared to closing on 5 Jan of RM1.25, the potential gain would range from 30 Sen to 61 Sen, a gain of 24% to 48.8%

Posted by Investor 9999 > 2018-01-07 08:58 | Report Abuse

Basis of Valuation
For Q3 Dufu reported a net profit of RM 6.4 mil with an EPS of 3.8 Sen and for the year to date to 30 Sept a net profit of RM 19.6 mil with an EPS of 11.7 Sen. The net profit would have been higher if not for the Forex loss of RM577K in Q3 and total of RM2 mil for YTD.

Given the positive strong statement by Dufu’s Board on its prospects for remaining qtr (see below extract), I have estimate Q4 EPS to be 3.8 Sen (same as Q3. Note that the average EPS for last 3 qtrs is 3.93 Sen) to give me an estimated FY 17 EPS to be 15.5 Sen.

Posted by Investor 9999 > 2018-01-07 09:00 | Report Abuse

Prospect for Q4

Dufu’s Board Statement on Prospects in Q3 announcement

We expect sales to continue to remain favorable towards end of 2017 as our major product is driven by the growth in high-capacity nearline HDDs as well as stabilization of client storage demand. The long-term future of HDDs are likely rests with high capacity HDDs, particularly in data centers serving cloud storage applications. The demand for high capacity storage drives, enhanced performance, and lower storage cost is set to rise. Global internet penetration, the rise in e-commerce in emerging markets, and the current trend for high-resolution media standards are the likely drivers for the continuing rise in global data storage demand. Nevertheless, the Group will continue to improve its operational efficiency and keep a tight rein on costs to ensure price competitiveness on its products. The Group is also working closely with existing and new customers in creating value to their supply chain, and will continue to seek opportunity to venture into new business segments that can synergizes with the Group’s current business model. With this in place and considering the continuing stable demand based on the current market trend and assuming that there is no volatility in the United States Dollar (“USD”) currency against Ringgit, the Group is optimistic about its earnings and growth in the coming quarters

Posted by Investor 9999 > 2018-01-07 09:01 | Report Abuse

9 mths YTD to 30 Sept 2017 vs 9 mths YTD 2016 (See attached Excel Table below)

1. Sales increase by RM8.3 mil or 6.8%


2. Gross profit margin increase by 7.1% from 25.3% to 32.4% (an increase of 28.1%)

The increase in GP margin is due to management restructuring its operation for improvement in its efficiencies and cost control measure implemented.

3. PBT had increased by RM10.2 mil from RM 15.5 mil to RM25.7 an increase of 66%

In 2016, there were two expenses not relating to operation, which I adjust to add back to my adjusted PBT so we are comparing apple to apple.

There was a Criminal Breach of trust expense of RM 2.7 mil (this was subsequently recovered in Q4 2016) and a NON TRADE LOAN impairment of RM1.2 mil. Total adjustment is RM3.9 mil


4. When comparing with 2016 ADJUSTED PBT, PBT had increased by RM6.298 mil from RM 19.378 mil to RM25.7 an increase of 32.5 % (highlight in Yellow in Excel Worksheet)



5. Net profit had increased by RM 7.7 mil from RM11.9 mil to RM19.6 mil.

6. The EPS for 9 mths YTD 2017 is 11.7 Sen compared to 2016 EPS of 6.95 Sen


7. For 9mth ended 30 Sept, the Co has net cash generated from operation of RM46.3 mil (2016 RM 25.8 mil ) For FY 2016 the cash generated from operation was RM46.5 mil (FY 2015 RM25.8 mil) Thus it has strong cash flow generated from operation,


8. At 30 Sept 2017, its net cash is RM30.745 mil (equivalent of 18.5 Sen per share)


9. Dufu has strong Balance Sheet with zero net gearing.

Posted by Investor 9999 > 2018-01-07 09:02 | Report Abuse

You may be concern of the strengthening of Ringgit which could affect Dufu profit margin.

Most tech companies in manufacturing also have very high import cost components, so the forex issue is there, but should be manageable. Still, for tech companies, they had been doing very well the past several years not bcos of forex gains, but bcos of increased sales from global tech sector upcycle... and this up cycle is still strong.

So, for Dufu, Forex should still be manageable... If you recall Q1 16, RM appreciate from 4.30 on 2 Jan 16 to 3.89 to mid-April 16 and at 30 Sept was 4.125 and Dufu was profitable for the 9 mths in 2016. If you take Q3 16, the RM to USD range from 4.00 to 4.125 and in Q3 16, and Dufu made a net profit of RM7.36 mil in the quarter. Hope this allay your concern

Posted by Investor 9999 > 2018-01-07 09:05 | Report Abuse

I have also analysed in details for MMSV, patience shareholders are being rewarded now

Posted by Investor 9999 > 2018-01-07 09:09 | Report Abuse

It is having resistance at 127. Dufu was Ooi Teik Bee counter previously. When it price dropped below 200 MA, OTB divest Dufu and his followers who panic follow suit and their volume could have be disgested in the market by now. I think OTB would regret when it moves

The price went down after Q3 announcement as operators flush it down to 102 to collect it.

Posted by Investee > 2018-01-07 13:40 | Report Abuse

@RJ87 where do u see dufu captured notion mkt share?

Posted by RJ87 > 2018-01-07 14:16 | Report Abuse

I was addressing the possibilities of how dufu will worth RM2.88...

Posted by shareinvestor88 > 2018-01-07 15:41 | Report Abuse

EPS 14c x PE 20 = 288

Posted by shareinvestor88 > 2018-01-07 15:52 | Report Abuse

EPS 14.4c x pe20

Posted by RJ87 > 2018-01-07 20:31 | Report Abuse

I think EPS is more important than PE...

Posted by Investee > 2018-01-07 20:36 | Report Abuse

I think we established that foreseeable EPS is about there. Now it's just PE unless got major news.

Posted by king36 > 2018-01-07 20:43 | Report Abuse

With poor market sentiment, & not in theme play, may drop to 1.15.

Just my opinion.

Posted by PW888 > 2018-01-07 20:54 | Report Abuse

king36, with due respect to your opinion, market semtiment poor now??

Posted by Investor 9999 > 2018-01-07 20:55 | Report Abuse

As Dufu is in a mature HDD industry where the CO command about 40% of market share (source from CO, its growth is in region of 8% in line with Seagate and WD annual growth. 70% of its income came from 3 customers (very likely all from HDD). I would not Duf a PE greater than 15 inview of the its current mature business with organic growth. I would be conservative to give it a PE 10 to PE 12 with a valuation range RM1.55 to RM1.86

Any valuation by Mr Market of more than 12 is a bonus..

Posted by Investor 9999 > 2018-01-07 20:59 | Report Abuse

Dufu

Dividend Paid for FY 2015 3.1 Sen , FY 2016 4.5 Sen and FY 2017 interim Dividend 2 Sen paid on 12 October.

Investors overlooked it Dividend Policy (Paying at least 50% of PAT) per Annual Report FY2016

Dividend

For FY2016, the Board is pleased to recommend a final
single-tier dividend of 3.5 sen per share for the approval
of our shareholders at the forthcoming Annual General
Meeting (“AGM”). If approved, coupled with the first
interim single-tier dividend of 1 sen per share paid out on
10 October 2016, the total dividend for this financial year
will be 4.5 sen per share which is higher than the total
dividend of 3.1 sen per share paid in respect of FY2015.
The dividend payout for FY2016 is consistent with the
Company’s Dividend Policy whereby at least 50% of the
Company’s Operating Profit After Tax (PAT) will be paid as
dividend to shareholders after taking into consideration of
the Company’s retained profits, cash flow as well as the
funding requirement of the Group.

As at 30 Sept the EPS is 11.7 Sen. We would expect payment of more than 5.5 Sen at minimum. Thus it is a Dividend yield stock. With projected net profit of 15.5 Sen, we can expect 7.5 Sen payout

Posted by Investee > 2018-01-07 21:58 | Report Abuse

Won't assign 20 definitely. Who is CO btw?

Posted by Investor 9999 > 2018-01-07 23:21 | Report Abuse

Co=Dufu

Posted by Investee > 2018-01-07 23:33 | Report Abuse

Where did u see 40% market share? That's kind of huge for dufu.

Posted by Investee > 2018-01-07 23:34 | Report Abuse

Tks for sharing btw

Posted by slts > 2018-01-08 11:17 | Report Abuse

just buy. bottom out & up trend begin

Posted by shareinvestor88 > 2018-01-08 12:32 | Report Abuse

Can buy ?

Posted by Peng1185 > 2018-01-08 12:48 | Report Abuse

Don't miss the boat.
I'm enjoying the ride now and sit back with pop corn watching the show .