mahsyarsaid

D&O based on automotive sales in China

Long
MYX:D&O   D & O GREEN TECHNOLOGIES BERHAD
D&O Green Tech Berhad is engaged in provision of management services (including plant facility services). The company segments include Asia, Europe, US and other countries. 45% of its revenues coming from the automotive sales from China so you need to look at how the overall automotive sector in china is behaving which will relates to this company.

Sector: Technologies (Semiconductor)

Subsidiaries
- Omega Semiconductor Sdn Bhd (Omega): Investment holding company
- Dominant Opto Tech (Dominant): manufacturing semiconductor components and machinery. Korea engage in merchandising semiconductor components. Shanghai engaged in development of semiconductor application technology, installation, wholesale and retail semiconductor devices, electronic components, electrical equipment for lighting, electronic display screen, lighting fittings, import and export related products.

Fundamentally:
  • Market Cap: 792mil
  • Current price: RM0.695
  • EPS: 16.91 (Good)
  • EPS*8.1: 136.971 (undervalue)
  • PE Ratio: 17.8 (OK)
  • ROE: 20.13 (Good)
  • NTA: 0.84 (Undervalue)
  • Financially, the company is in positive net profit since 2014.
  • Institutional investor includes Keen Capital Investment (13%) and KWAP (4.92%)

Dominant Opto Tech
- Dominant is one of the leading light-emitting diodes (LED) manufacturers in the world offering high-performance solution for world renowned car makers.
- Recently the opened a new headquarter in Melaka (Batu Berendam)
- Global automotive lighting market was worth about $32.8 billion in 2025 as demand for intelligent lamps, especially automotive LED lamps picks up. The new facilities in Batu Berendam will ensure they continue to support and sustain the industry demand globally.
- Overall, this year would have been an exciting growth year for D&O, despite COVID-19 pandemic. D&O is allowed to run its operation with only 20% of its workforce, translating into 20%-30% production capacity during MCO. This is a sharp decline in utilisation of the new facilities in Batu Berendam.
- The china market, contribute about 45% D&O automotive LED sales saw its auto sales plunged 79% drop in February now picking up back to normal production.
- On positive note, China auto industry is expected to remain robust for the year as operations have resumed.
- This will boost D&O sales to china towards the second half of the year, neutralizing the impact of the sharp slowdown in the first half.

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