D&O Green Technologies Bhd ("D&O") is involved in the semiconductor industry in various capacity such as provision of full trunkey contract manufacturing, manufacturing of semiconductor components and machinery, investing in semiconductor business in China and merchandising of semiconductors components.
Historical Financial Performance
D&O's profits have been rising steadily for the past 3 years.
Graph 1: D&O's last 10 yearly results
In QE30/9/2017, net profit rose 81% q-o-q or 167% y-o-y to RM6.7 million while revenue rose 8% q-o-q or 7% y-o-y to RM111 million.
Graph 2: D&O's last 10 quarterly results
Latest Financial Position
As at 30/9/2017, Financial position is deemed satisfactory with current ratio at 1.77 times and gearing ratio at 0.81 times.
D&O (closed at RM0.745 as at Dec 22) is now trading at a trailing PER of 38 ttimes (based on last 4 quarters' EPS of 1.94 sen). At this PER, D&O is deemed fully valued.
Chart 1: D&O's daily chart as at Dec 22, 2017 (Source: Malaysiastock.biz)
Chart 2: D&O's weekly chart as at Dec 22, 2017 (Source: Malaysiastock.biz)
Despite fully valued, D&O is a good stock to long-term investment. In the short to medium-term, the stock may benefit from the strong global demand for semi-conductor. I believe the technical outlook is bullish and it is now a good trading BUY.
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