For Q31/3/2019, Dufu's net profit dropped 72% q-o-q or 28% y-o-y to RM4.2 million while revenue dropped 22% q-o-q or 6% y-o-y to RM49 million. Profits dropped mainly due to the decreased in revenue, unfavorable foreign exchange rate and lower production output which has resulted in higher absorption fixed overhead costs.
Table: Dufu's last 8 quarterly result
Graph: Dufu's last 23 quarterly result
Dufu's financial position as at 31/3/2019 is deemed healthy. Its current ratio and gearing ratio stood at 4.6 times and 0.3 times respectively.
Dufu (closed at RM1.70 yesterday) is now trading at a trailing PER of 8.3x (based on last 4 quarters' EPS of 20.43 sen). At this PER, Dufu is deemed fairly attractive.
Dufu has been sideways (with a slight upward bias) for the past 4 months. The current price decline will likely test the lower price range of RM1.55.
Chart: Dufu's daily chart as at May 7, 2019 (Source: Malaysiastock.biz)
Despite poor financial performance last quarter, Dufu is still a good stock for long-term investment based on healthy financial position and fairly attractive valuation.