For Q30/6/2019, Dufu's net profit rose 151% q-o-q but dropped 11% y-o-y to RM10.5 million while revenue rose 8% q-o-q but dropped 9% y-o-y to RM53 million. Profit before taxation increased by RM7.7 million or 132% q-o-q mainly due to the increased in revenue, favorable foreign exchange rate and higher production output which has resulted in lower absorption fixed overhead costs in the current financial quarter as compared to the preceding quarter.
Table: Dufu's last 8 quarterly result
Graph: Dufu's last 24 quarterly result
Dufu's financial position as at 30/6/2019 is deemed healthy. Its current ratio and gearing ratio stood at 4.5 times and 0.3 times respectively.
Dufu (closed at RM1.88 yesterday) is now trading at a trailing PER of 9.5x (based on last 4 quarters' EPS of 19.83 sen). At this PER, Dufu is deemed fairly attractive.
Dufu has been stange-bound between RM1.30 and RM1.95 for the past 7 months.
Chart 1: Dufu's daily chart as at Aug 7, 2019 (Source: Malaysiastock.biz)
Chart 2: Dufu's monthly chart as at Aug 7, 2019 (Source: Malaysiastock.biz)
Based on better financial performance, healthy financial position and fairly attractive valuation, Dufu is still a good stock for long-term investment.