DUFU TECHNOLOGY CORP. BHD

KLSE (MYR): DUFU (7233)

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Last Price

1.82

Today's Change

-0.05 (2.67%)

Day's Change

1.80 - 1.91

Trading Volume

2,690,900

Overview

Market Cap

991 Million

NOSH

544 Million

Avg Volume (4 weeks)

1,435,777

4 Weeks Range

1.68 - 1.91

4 Weeks Price Volatility (%)

60.87%

52 Weeks Range

1.68 - 2.35

52 Weeks Price Volatility (%)

20.90%

Previous Close

1.87

Open

1.90

Bid

1.82 x 51,300

Ask

1.83 x 7,100

Day's Range

1.80 - 1.91

Trading Volume

2,690,900

Financial Highlight

Latest Quarter | Ann. Date

30-Sep-2023 [#3] | 31-Oct-2023

Next QR | Est. Ann. Date

31-Dec-2023 | 23-Feb-2024

T4Q P/E | EY

48.09 | 2.08%

T4Q DY | Payout %

2.95% | 141.59%

T4Q NAPS | P/NAPS

0.61 | 2.97

T4Q NP Margin | ROE

9.02% | 6.17%

Market Buzz
Company Profile

Sector: INDUSTRIAL PRODUCTS & SERVICES

Sector: INDUSTRIAL PRODUCTS & SERVICES

Subsector: INDUSTRIAL MATERIALS, COMPONENTS & EQUIPMENT

Subsector: INDUSTRIAL MATERIALS, COMPONENTS & EQUIPMENT

Description:

Dufu Technology Corp Bhd is Malaysia-based firm. The company is engaged in the manufacture and sale of industrial products; trading of computer disk-drive and related components. It is involved in the design, development, manufacture, assembly, and trade of die components; and precision machining of vice, computer peripherals, and parts for hard disk drives. Its product portfolio consists of precision turning products, precision machining product, metal stamping, sheet metal fabrication, tool and die fabrication, and plastic components. The company serves HDD, industrial safety and sensor, telecommunication, computer, and consumer electronics industries. Most of its revenue comes from Malaysia market, while it also has a presence in the China, Singapore, Thailand and other countries.

Discussions
11 people like this. Showing 50 of 7,243 comments

Souljaboiiii

Seagate transcript:
We enter calendar 2024 with increased confidence in our non-GAAP gross margin trajectory, including our ability to reclaim 30% minimum benchmark level at quarterly revenues that are at least 20% below our prior cyclical peak. From a demand standpoint, gradual recovery within the U.S. cloud market has started to take shape, reflecting solid progress in consuming excess inventory, along with more stable end-market behavior. Enterprise OEM demand trends have also stabilized within the U.S. markets. Customer feedback still points to macro-related concerns, although IT hardware budgets are projected to modestly improve in calendar 2024, and traditional server growth is expected to resume trends that support incremental HDD demand growth in the calendar year.

We were also encouraged to see incremental demand among certain non-U.S. cloud and enterprise customers in the December quarter. Across the broader China markets, we project a relatively slower pace of recovery given the ongoing economic challenges within the region. However, some local governments announced further steps to support the region's economy, which our customers believe will bolster local demand across mass capacity markets in China in the second half of the calendar year.

2 weeks ago

Souljaboiiii

WDC earnings transcript:
Turning to HDD. The sequential revenue increase was driven by improving nearline demand and pricing. Moreover, we are encouraged by demand in China with revenue doubling on a sequential and year-over-year basis, both of which were ahead of our expectations. We anticipate year-over-year growth in HDD throughout this calendar year.
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At the end of the fiscal second quarter, cash and cash equivalents were 2.5 billion and total liquidity was 4.7 billion, including the undrawn revolver capacity of 2.25 billion. For the fiscal third quarter, our non-GAAP guidance is as follows: We expect revenue to be in the range of 3.2 billion to 3.4 billion. We expect sequential revenue growth to be mainly driven by an increase in HDD. We anticipate flash revenue to be up slightly as we remain focused on optimizing bit shipments and ASP.

2 weeks ago

Souljaboiiii

The more I shout, the more it drops.
Maybe it's doing CNY sales.
Maybe I'm so wrong.
Maybe the upcoming QR is awful.
Maybe...
Let's focus on the fundamental rather than the stock price movement...

2 weeks ago

howardmark

Looking at price and capacity trends, at what year SSD will surpass HDD in terms of price per gigabyte storage?

Predicting the exact year when SSDs will surpass HDDs in terms of price per gigabyte is challenging due to various market factors. However, several indications suggest this shift may happen sooner than initially expected:
Industry projections:
FDI Consulting: Estimates SSDs to become cheaper than HDDs on a dollar-per-terabyte basis by 2026.
Wikibon: Projects consumer-grade flash SSDs to surpass HDDs in cost per gigabyte by 2026.
TrendForce: Believed a NAND flash memory oversupply in 2022 could have caused SSD prices to drop by 20%, further accelerating the trend.
Current trends:
SSD prices have been steadily declining over the past decade due to advancements in flash memory technology and manufacturing efficiencies.
HDD prices have remained relatively stable or even increased slightly in recent years.
Demand for SSDs is increasing rapidly, fueled by their performance and reliability advantages.
Caveats:
NAND flash memory shortages could temporarily slow down the price decline of SSDs.
HDD manufacturers may introduce new technologies to improve their cost-efficiency.
Market forces such as trade wars or economic fluctuations could impact pricing.
Overall, While an exact year is difficult to pinpoint, the evidence suggests SSDs surpassing HDDs in cost per gigabyte is likely within the next few years (2024-2026). The specific timeline will depend on the factors mentioned above.

2 weeks ago

Souljaboiiii

Ok, let's put our money on bet.
I suggest you to try to short STX which is listed on Nasdaq. Their main revenue (>80%) is coming from HDD. Instead, I will long Dufu & STX, see who's return is higher in the next 5 years. If what you said is valid, you should be very profitable by shorting STX.

The cost per GB of a large capacity HDD is cheaper by 7x or even more than a large capacity SSD.
So when you think SSD will replace HDD in data center?
Do you know >80% of data in the hyperscale conventional data center are stored in HDD?

2 weeks ago

Souljaboiiii

You believe in what the predictors are saying, but too blind to see what's the "CURRENT TREND". What I witness is that nearline HDD is going to recover throughout this whole calendar year. This is align with what Western Digital and Seagate are guiding.
For your information, Western Digital manufactures NAND flash memory as well.

2 weeks ago

gooman

stock market reflects a view of the economy six months in advance,

1 week ago

howardmark

Souljabooii, the more you promote, the more it drops, obviously the market doesn't buy your view. It doesn't care. The market is forward looking. Cut loss to preserve your capital.

1 week ago

Superich

From Souljabooii's posts, I can see that he is merely expressing and sharing his views of HDD future based on his research which I found very informative. Readers are free to draw their own judgement and why the fuss??

1 week ago

Souljaboiiii

TSMC just guided their Capex will be 28-32 billion USD in this year compared to ~30 billion USD last year. Most of their capex will be used to expand their AI related segment. The current bottleneck of Nvidia AI accelerator is the advanced packaging that is used to package the HBM DRAM by using CoWos technique (2.5D packaging). Lots of OSAT, even foundaries like TSMC, Samsung and Intel are expanding their advanced packaging factories.
https://investor.tsmc.com/english/quarterly-results/2023/q4

1 week ago

Souljaboiiii

Slowly but surely the money will be poured to the equipment manufacturers then further down to the precision metal manufacturers.

1 week ago

nicholas99

the thing is all the big factory build their own factory. so, it will have limited opportunity.

1 week ago

nicholas99

when you are as big as tsmc. you would want to make things yourself to control the cost.

1 week ago

nicholas99

and if packaging is the way forward, they will build their own factory to have more designs down the 5-10 years road. and not rely on 3rd party..

1 week ago

nicholas99

its crazy to depend his 5-10 years fortune on 3rd party company.

1 week ago

Souljaboiiii

I have no idea why the stock plunged from RM1.94 to the current price.
But I guess the real reason behind the plunge is due to the sluggishness of the Q4'23 earnings report. Institutions maybe already access the QR report and decided to dump the shares.

1 week ago

Souljaboiiii

Wait... You mean TSMC wants to build the equipment by themselves?
Do they have the capability?
Why Apple chose to use ICs from other companies instead of building all by themselves?

1 week ago

Souljaboiiii

Do you really understand how difficult it is to build an equipment like the ASML EUV?
Why US ban China from buying high end EUV from ASML?
Why AMAT, KLA, LAM and etc are still there but not slaughtered by TSMC expansion?

1 week ago

Souljaboiiii

Control cost is by having a lot of suppliers. The more they are, the cheaper it will be the equipment. FYI, companies like ASML has no competitors in their league. The price of a EUV can go up to 500 million USD just for one equipment. This industry is not a "commodity" or any "low barrier to entry industry". The amount of patents and intellectual properties are insane and I don't think in any near future, TSMC will be able to build their own equipment, especially the EUV machine.

1 week ago

gooman

kobay!

1 week ago

KPH5328

thanks for your sharing Souljabo, more than 76% of its revenue is generated from the
HDD segment as per AR2023, appreciate if you could shed some lights how TSMC Capex would have spillover effect to precision maker like Dufu, no doubt data center expansion has to support growth in AI & others which will benefit Dufu.

1 week ago

Souljaboiiii

TSMC is just a benchmark. It shows that the semicon industry is reviving again.
The capex guided by TSMC is mainly to expand their manufacturing capacities for AI chips (Nvidia, AMD and etc). Therefore, we can expect that the money will be channelled to a lot of front-end to back-end (CoWos capacity) equipment manufacturers. The equipment manufacturers will look for precision metal players to manufacture the modules (precision parts). Other than TSMC, big players like ASE and Amkor are also expanding to provide advanced packaging (2.5D) services.
This year will be a HUAT year for all the semicon players (not so huat for automotive)...
Logic, Memory, Analog, Sensors... The market will be hotter once Intel introduces their AI PC...

1 week ago

Souljaboiiii

Nearline HDD is mainly used in the conventional data center. AI data center has a lot of issues to solve, power is one of them. FYI, GPU is very power intensive. Hence, you will see headlines like Microsoft is proposing to use nuclear energy for their AI data center and etc... In general HDD uses more power than NAND flash (SSD), so I don't think it will be the main storage that will be used in the AI data center. It will be benefitted by the trend, because generative AI will create a lot of new contents. The new contents have to be stored, and nearline HDD is the most economical way to store these data. This is guided by Seagate in their earnings call, I don't have the details and firm answer for this.

1 week ago

nicholas99

No one can replace ASML. But TSMC can replace advanced packaging factories. And they wanted to do that. Due to US ban on China Etc reason.

1 week ago

nicholas99

What happened after 1nm and they cannot go lower.. They will start stacking chips.. this is where advanced packaging is important for future. And TSMC definitely will build their own advanced packaging factories.

1 week ago

nicholas99

probably because lack of contracts and jobs.

1 week ago

Souljaboiiii

I would say the fabless players will look for more than one supplier...
NO ONE WILL WISH TO RELY 100% on TSMC.
They will place order with other OSAT players like ASE/AMKOR.
No doubt that TSMC will further expand their advance packaging capacities, but do they wish to take orders from chips that are 10nm and below? Keep in mind that the margin is so low, and saturated with China players in this region...

1 week ago

NatsukoMishima

Dufu , kobay both PE only worth around 10 ! Higher is overvalue , sorry to say that is the truth !

1 week ago

NatsukoMishima

Vstecs better than all these stocks !

1 week ago

Souljaboiiii

Some suppliers went bust during this HDD recession. WDC and STX mentioned that this recession hurt their supply chain gao gao. Hence, I am very confident that WDC and STX will not terminate their contracts with Dufu. A good relationship with its customer is also a moat.

5 days ago

Souljaboiiii

If the hyperscaler is asking for more HDD, WDC and STX also mentioned there is a supply issue due to unhealthy supply chain. Keep in mind that Toyota once shut down their factory due to insufficient disk space. This shows how important is a 'cheap but large capacity storage devices'.

5 days ago

Souljaboiiii

All the local OSAT players are getting more orders from China. Customers are looking for a more resilient supply chain instead of focusing all their resources in China. This will benefit our local OSAT players, as well as equipment and precision metal players.

5 days ago

Souljaboiiii

The semiconductor industry is definitely going to revive in this second half of this year. There is no turning back, we all are using more digital devices.

5 days ago

Souljaboiiii

Notion HDD revenue rebounded from 16million last quarter to 23million this quarter...

4 days ago

Souljaboiiii

That's a 45% increase in HDD revenue...

4 days ago

Souljaboiiii

Huge pump after QR revealed. Get in the ship before it sails.

3 days ago

Tanleechoo

Ok jump in today

3 days ago

Souljaboiiii

Notion just got pumped 44%...

3 days ago

Souljaboiiii

Take profit...

2 days ago

gooman

HDD is now on the verge of entering a new phase of growth, thanks to breakthrough technology aimed at increasing its capacity.
This technology is the ultimate form of energy-assisted recording aimed at improving recording density, known as Heat-Assisted Magnetic Recording (HAMR).
Seagate Technology in the United States plans to start mass production of 3.5-inch HDDs for data centers using HAMR by the end of March 2024. The recording
capacity per disk (per platter) is 3TB, and they have developed a product with a capacity of 30TB, named Exos Mozaic 3+, by incorporating 10 disks.

2 days ago

gooman

Heat-Assisted Magnetic Recording (HAMR) is a groundbreaking technology designed to significantly increase the storage capacity of hard disk drives (HDDs). By using a laser to temporarily heat a small area of the disk, HAMR enables the magnetic recording of data on much smaller regions than was previously possible, leading to a dramatic increase in data density. This technology allows for the potential creation of HDDs with capacities far exceeding current limits, aiming towards drives with 20TB of storage and beyond, with projections reaching up to 100TB by around 2030. HAMR technology operates by focusing a laser's heat on the disk surface, which reduces the coercivity of the material, making it more susceptible to magnetic changes. Once the area cools down, the data is securely stored with high fidelity. Despite the advanced nature of this technology, it is designed to be compatible with existing HDD form factors, ensuring that it can be integrated into current systems without necessitating significant changes to hardware configurations. This compatibility extends to the anticipated running costs of HAMR drives, which are not expected to be significantly higher than those of traditional HDDs, as the laser used in HAMR requires only a small amount of power. The development of HAMR technology by companies like Seagate marks a significant milestone in data storage technology, aiming to meet the growing demand for higher capacity storage solutions in data centers and other applications where massive data storage is essential.

2 days ago

gooman

Seagate Will Release 30TB HAMR Hard Drives in Early 2024
https://www.guru3d.com/story/seagate-will-release-30tb-hamr-hard-drives-in-early-2024/

Despite the decreasing cost of SSD storage, HDDs are expected to remain the preferred option for mass storage in data centers for the foreseeable future due to their capacity advantages. Reflecting on the evolution of storage capacities, Seagate's progress is noteworthy, considering they reached a milestone of 16 terabytes only in 2018, and are now poised to double that capacity.

2 days ago

Souljaboiiii

Last Friday sell off was to price in the poor performance of its peers. Dufu is quite unique in the supply chain, its metal stamping division takes semiconductor parts, automotive, life sciences and etc. But its main product is the spacer ring, which I anticipate the recovery has definitely started since January of this year.

14 hours ago

Souljaboiiii

Notion HDD segment does base plates, spacers, disk clamp... But dufu is spacer pure play company.

14 hours ago

Souljaboiiii

Dufu has ~40% spacer ring market share. Just take notion HDD segment as a reference, we can anticipate a somehow modest recovery...

14 hours ago

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