DUFU Technology Corp. Berhad engage in the manufacturing of industrial products and trading of computer disk-drive related components. It offers products which are categorized as precision turning products, precision machining products, metal stamping products, sheet metal fabrication , tool and die fabrication, and plastic components.
Based on its business model, DUFU aim to emerge as one of the worlds larget precision metal components for disk spacers supply to the Hard Disk Drive (HDD) industry. They export their products to mainly within Asia Pacific, Europe, Oceania and North America region.
Fundamentally, DUFU is a solid company as follows:
Post COVID-19 prospects
It is quite obvious that almost all companies are impacted by COVID-19. Same goes to DUFU. One of its plant in China was affected by the compulsory shutdown by the government of china in January 2020. It has since recovered. Thereafter, its plants in Malaysia were shut down on 18 March 2020 due to MCO implementation. Subsequently, later through MITI approved that the plant to be continued at 50% of their manpower capacity to meet their existing and new orders.
"The outlook for 2020 looks promising with our main HDD business segment forecasting staggering levels of data growth in the coming years"
The catalyst
1) COVID-19 has further traject the demand of HDD based on the increase in server demand as businesses move to online
2) 5G implementation- Growth catalyst in various industries attributed by technological transformation as more companies are preparing themselves for 5G technology rollout, big data, powerful analytics, AI and other key innovation to drive growth.
Looking Ahead
Significant rise on the shipment of DUFU's products in the second half of 2019 driven by increasing demand related to components installed in recently launched 14TB to 16TB hard drives mainly cater for enterprise-class nearline segment.
Based on its business model, DUFU aim to emerge as one of the worlds larget precision metal components for disk spacers supply to the Hard Disk Drive (HDD) industry. They export their products to mainly within Asia Pacific, Europe, Oceania and North America region.
Fundamentally, DUFU is a solid company as follows:
- Market Cap: 1bil
- Current price: RM4
- EPS: 20.70cent (OK)
- EPS @ 8.1 ~
- PE Ratio: 18.99
- ROE: 22.75 (GOOD)
- NTA: 0.910 (OK considering its a tech company)
- Financially, the company is driven by strong growth mindset with positive net profit year on year.
- In term of the institutional investor, Eastspring Investment Berhad is one of the investor.
- With public float of 133.24mil, this company is considered 'light' which tendency for price change is higher.
Post COVID-19 prospects
It is quite obvious that almost all companies are impacted by COVID-19. Same goes to DUFU. One of its plant in China was affected by the compulsory shutdown by the government of china in January 2020. It has since recovered. Thereafter, its plants in Malaysia were shut down on 18 March 2020 due to MCO implementation. Subsequently, later through MITI approved that the plant to be continued at 50% of their manpower capacity to meet their existing and new orders.
"The outlook for 2020 looks promising with our main HDD business segment forecasting staggering levels of data growth in the coming years"
The catalyst
1) COVID-19 has further traject the demand of HDD based on the increase in server demand as businesses move to online
2) 5G implementation- Growth catalyst in various industries attributed by technological transformation as more companies are preparing themselves for 5G technology rollout, big data, powerful analytics, AI and other key innovation to drive growth.
Looking Ahead
Significant rise on the shipment of DUFU's products in the second half of 2019 driven by increasing demand related to components installed in recently launched 14TB to 16TB hard drives mainly cater for enterprise-class nearline segment.
Comment:
Rumor 1:1 bonus issue soon. RM6 coming?
Trade closed: target reached
