For QE30/9/2018, Dufu's net profit rose 64% q-o-q or 201% y-o-y to RM19 million while revenue rose 14% q-o-q or 54% y-o-y to RM67 million. Revenue rose strongly q-o-q due to the continued strong demand in the HDD segment, economies of scale and together with the favorable USD exchange rates against MYR also attributed to the increase in profit before tax.
Table: Dufu's last 8 quarterly result
Graph: Dufu's last 21 quarterly result
Dufu's financial position as at 30/9/2018 is deemed healthy. Its current ratio and gearing ratio stood at 3.3 times and 0.3 times respectively.
Dufu (closed at RM3.01 last Friday) is now trading at a trailing PER of 11.4x (based on last 4 quarters' EPS of 26.5 sen). At this PER, Dufu is deemed fairly attractive.
Dufu closed at a new all-time high of RM3.01 last Friday. This surpassed the previous closing high of RM2.81 on October 5. Since it is trading in all-time high territory, Dufu may go even higher in the next few weeks. On weakness, it may find support at RM3.00 & RM2.80. A break below RM2.80-2.81 could be a warning that the uptrend will be ending. We watch out for that.
Chart 1: Dufu's daily chart as at Nov 9, 2018 (Source: Malaysiastock.biz)
Chart 2: Dufu's monthly chart as at Nov 9, 2018 (Source: Malaysiastock.biz)
Based on good financial performance, healthy financial position and fairly attractive valuation, Dufu is a good stock for long-term investment.