I have been postings on MMSV undervaluation since it Q3 announcement and now Mr Market has wake up to recognise MMSV. Our patience is being rewarded now. TA investors would now rush in now as TA indicators is bullish.

I am updating my peers comparison posted here previously to convince you there is still potential in MMSV. Refer to my earlier posting

1. Penta Projected FY 17 EPS 10.53 and trading at PE 28.9

2 Vitrox Projected FY 17 EPS 18.03 and trading at PE 37.7

3 Elsoft Projected FY 17 EPS 10.9 and trading at PE 25.3

4 Vis Actual FY 17 EPS 4.0 and trading at PE 15.1 (using FY17 actual adjusted for bonus issue)

5 MMSV Projected FY 17 EPS 14.62 and trading at PE 12.5

Current year prospects
Given the continuing growth of the smart devices and automotive industries, the Board is confident of leveraging on them. The Board foresees that the performance for the remaining quarter will therefore
be good.

Financial period-to-date against preceding year corresponding financial period
The total revenue of the Group of RM63.725 million for the period ended 30 September 2017
increased by 107% (RM33.007 million) as compared to RM30.717 million reported in the previous
financial period. The surge in revenue was due to higher volume of machines sold.
The increase in other operating income was contributed by the increase in interest income earned
coupled with the gain from fair value adjustment of other investments.
The increase in administrative expenses was mainly due to increase in some indirect overheads in line
with operational volume increased coupled with some professional costs incurred in connection with
the Group’s proposed transfer listing exercise.

Comparison with the corresponding period in the previous year
The Group recorded a revenue of RM19.442 million for the current quarter, a significant increase of
186% (RM12.636 million) as compared to RM6.806 million of the corresponding quarter in the
previous year. The quarter under review recorded a surge in sales of machines to the manufacturers of
smart devices and automotive segments as well as OEM and ODM customers. These customers have
increased their orders for our machines in meeting their production needs.
Gross profit has remained consistent with the nature of machines sold during the quarter. The decrease
in other operating income was attributed to the further forex losses suffered as the US Dollar weakened
slightly against the RM since the beginning of second quarter, which also explained the increase in
other operating expenses.
The increase in administrative expenses was mainly due to increase in some overheads in line with
increase in operational volume as well as some professional costs incurred in connection with the
Group’s proposed transfer listing exercise.

https://www.forbes.com/sites/tomcoughlin/2017/01/28/20-tb-hard-disk-drives-the-future-of-hdds/#267b26eb1f88

https://www.anandtech.com/show/10470/the-evolution-of-hdds-in-the-near-future-speaking-with-seagate-cto-mark-re

https://www.digit.in/storage/a-date-with-seagate-the-future-of-hdd-storage-in-times-of-ssd-iot-and-cloud-33981.html

Sales growth from FY 2015 to 2016 from RM 19.02 mil to RM 24.67 (ie 30% growth). Q1 18 compared to Q4 17 growth in sales is 5% (growth for last 3 qts range from 5% to 10%). it is not a quantum leap Co to deserve a high forward PE 26.2

Profit of the Co for last FY 2017 and 2016 had been pull down by the legal cost incurred to defend infringement of patent in US court. Q1 2018 cost was minimal and resulted in it reported a higher net profit of RM 2.3 mil with Q1 EPS of 1.8 Sen

I have projected the FY 2018 EPS to grow by 30% (aggressive growth projection) using Q1 2018 EPS as a base. (1.84X4X 130%) to be 9.57 Sen. With PE 15 to 18, my JFTech valuation range from 143 to 172 at max.

Comparing to its current price of 205, it is far overvalued.

The share price of JFTech is just being manipulate by operators of funds holding it by buying a few lots to hold the price. Like today, 99.2K shares traded, the price push up 14 Sen,

Invest at your own peril

I will not take position in JHM. I am reviewing thru Q3 in details of the Co., Its growth has normalised with top and bottom line stagnant, since Q1 2017 to Q3 2017.Refet to the summary attached. For my analysis, the Qtrly EPS for Q2 and Q1 have not been adjusted for bonus share of 2 for1.

Based on my calculation its EPS to 30 Sept 2017 Q3 for 9 mths is only 9.01 (adjusted for bonus issue). Q3 EPS was 2.98 Sen. Given that the sales and profit had stagnant for last 3 QTRs, My best estimate profits FY 17 EPS is 13 Sen (9.01+4).

Thus at current price of 304, it is trading at forward PE 23.4. Whereas VS at 310 with positive growth story (growth is progressing on news of impending new projects) is trading at PE 20.5. SKP Resources at 228 is trading at PE of 20.2. JHM is trading at high PE with thin vol traded and easily push up as the share could be cornered.

Very high PE for an injection mould company, couple with Design and manufacture of precision miniature engineering metal parts and components (like Dufu and Notion). Co is also in Manufacture and assembling of electronic components using surface mount technology.

As for the income from Aerospace business, it is not significant. The Co just sang and play up the aerospace story to stir the market. Co could qualify by an aerospace Customer but I do not know which Customer. It may fall into one of the three below.
In the Aerospace industry environment, B/E Areospace was taken over by a Rock Collins for US6.4 billion. After takeover, when in midst of reorganisation of business and supply chain of both organisations , United Technologies took over Rock Collins for US 60 bil.
The whole supply chain for aerospace parts is in a mess with the recent takeovers. If JHM customer is B/E Aerospace or Rock Collins, United Technologies would do a vendor requalification and process take time.

No point arguing. The FA is strong just that Mr market just wake up to realise its undervaluation. Refer back to my earlier posting.

Shareinvestor88, What nonsense are you shouting at ? Just be responsible with your basis..

The Company reported net profit for Q3 and Q3 YTD was RM38.7 mil (EPS 12.88 Sen) and RM63.3 mil (EPS 21.1 Sen) respectively.

Do note that Masteel Q3 for the Qtr and Q3 YTD both had a reversal of overprovision of deferred taxation of RM20.6 mil (equivalent of EPS 6.86 Sen) in respect of prior years’ written back in Q3. This reversal amount to an equivalent of EPS 6.86 Sen is a one off adjustment with no cash fkow impact.

Without the overprovision of deferred tax, the EPS for the Q3 and Q3 YTD would have been 6.02 Sen (with a net profit of RM18.1 mil) and 14.24 Sen (with a net profit of RM42.7mil) respectively. The current Q3 achievement of higher profit are mainly due to higher volume and better pricing.


The question you have to ask on Masteel.

Is the adjusted operating EPS of 6.02 sustainable given the doldrums of the construction and property industry? LAU333 had quoted the softening residential market and perhaps an even bigger problem lay in the overcapacity of shopping mall (retail space per capita has exceeded Hong Kong & Shanghai).

On prudent, I would take the average quarterly adjusted net operating profit for Q3 YTD to project my forward EPS for FY2018. Average qtrly EPS 4.75 Sen (14.24/3).


My forecast of FY18 EPS could range from upper EPS 19 Sen (4.75 X4) to lower of 15.2 (4.75X4X80%) assuming a lower profit due to lower demand due to adverse construction and property industry. With PE 9 the valuation could range from 137 to 171

ICON 888 is also eyeing on Dufu

https://klse.i3investor.com/blogs/icon8888/140947.jsp

Why sell when on 5 December Taiwankia Director had bought 188K shares at 155. Take it as a signal that share is undervalued, as last time he bought was 23 Jan 2017 bought 417K shares and share price went up after that. This director holds 5.2 mil shares.

Big Operators just cuci all Dufu investors kaw kaw yesterday and those cannot tahan kena squeeze will surrender and loose out. Unfortunately the world is like that, the operators could just maniplate the market,

Dufu as it is trading at historical PE 7 and also forward PE 7. Why are all of you waiting???. Whern it is cheap pick it. Look at my above earlier comment on the prospects .

In Q3, the Board of MMSV had given a VERY STRONG statement of its prospects moving forward. I copy below:

B3. Current year prospects
Given the continuing growth of the smart devices and automotive industries, the Board is confident of
leveraging on them. The Board foresees that the performance for the remaining quarter will therefore
be good.

Ask yourself should u sell????

MMSV for 9 mth YTD had already made EPS of 11.38 Sen and in Q3 its EPS was 3.24 Sen. On conservative let say Q4 EPS is 3.24 Sen. Thus the FY 7 estimated EPS is 14.62.

Due to the current poor market sentiment,I have used a conservative PE of 12 to 15 (its peers are trading at PE 17.5(Vis), 22.6 (Penta) 29.8(Vitrox) and 24.6 (Elsoft) to value the Co to give a valuation range of 175 to 219 .

At 158, it is trading at PE 10.8. The balance sheet is strong It has a net cash of RM30.7 mil cash or 20 Sen per shar.

Your may also be concern of the strengthening of Ringgit which could affect MMSV profit margin. From Q3 report about 35.% of its sales is export.

Most tech companies in manufacturing also have very high import cost components, so the forex issue is there, but should be manageable. MMSV had been doing very well the past several years not because of forex gains, but because of increased sales from global tech sector upcycle and this up cycle is still strong. Given only 35.8%of sales is export, so for MMSV, Forex should still be manageable. If you recall in Q1 16, RM appreciate from 4.30 on 2 Jan 16 to 3.89 in mid April 16 and at 30 Sept RM was 4.125. MMSV was profitable for the 9 mths YTD in 2016. Hope this allay your concern

I cannot advice you to cut or not as we all have different risk appetite.

The Board of Dufu comment on Co Prospects in Q3

18. Prospects
We expect sales to continue to remain favorable towards end of 2017 as our major product
is driven by the growth in high-capacity nearline HDDs as well as stabilization of client
storage demand. The long-term future of HDDs are likely rests with high capacity HDDs,
particularly in data centers serving cloud storage applications. The demand for high
capacity storage drives, enhanced performance, and lower storage cost is set to rise.
Global internet penetration, the rise in e-commerce in emerging markets, and the current
trend for high-resolution media standards are the likely drivers for the continuing rise in
global data storage demand.

Nevertheless, the Group will continue to improve its operational efficiency and keep a
tight rein on costs to ensure price competitiveness on its products. The Group is also
working closely with existing and new customers in creating value to their supply chain,
and will continue to seek opportunity to venture into new business segments that can
synergizes with the Group’s current business model. With this in place and considering
the continuing stable demand based on the current market trend and assuming that there is
no volatility in the United States Dollar (“USD”) currency against Ringgit, the Group is
optimistic about its earnings and growth in the coming quarters

TA followers would cut as price fell below 200 day MA. Ask yourself should u sell????

DUFU for 9 mth YTD had already made EPS of 11.8 Sen and in Q3 its EPS was 3.8 Sen. On conservative let say Q4 EPS is 3 Sen. Thus the FY 17 estimated EPS is 14.8.

Due to the current poor market sentiment,I have used a conservative PE of 9 to 10 to value the Co to give a valuation range from 133 to 148.

At 115, it is trading at PE 7.77. The balance sheet is strong It has a net cash of RM30.7 mil cash or 20 Sen per shar.

Till todate, the Co had paid Div of 5.5 Sen

Your may be concern of the strengthening of Ringgit which could affect Dufu profit margin.

Most tech companies in manufacturing also have very high import cost components, so the forex issue is there, but should be manageable. Still, for tech companies, they had been doing very well the past several years not bcos of forex gains, but bcos of increased sales from global tech sector upcycle... and this up cycle is still strong.

So, for Dufu, Forex should still be manageable... If you recall in Q1 16, RM appreciate from 4.30 on 2 Jan 16 to 3.89 in mid April 16 and at 30 Sept RM was 4.125.

Dufu was profitable for the 9 mths YTD in 2016. If you take Q3 16, the RM to USD range from 4.00 to 4.125 and in Q3 16, and Dufu made a net profit of RM7.36 mil in the quarter. Hope this allay your concern

I cannot advice you to cut or not as we all have different risk appetite.

Only Dufu is trading at lower PE of 8.3 compared to MMSV, my apologise for the oversight

Mr Market would wake up one day and smart investors would buy MMSV in due course. For time being keep your MMSV as short term fixed deposit with the highest resturn compared to other banks.

I had previously guided that it net profit would be RM5 mil and estimated EPS 3.1 and Q3 reported was RM5.2 mil and EPS of 3.24 respectively.

For a Co 9 mths to Sept (Q3 YTD) making net profit of RM18.3 mil with a EPS of 11.38 Sen and now trading at PE 11.35, you cannot be wrong to invest in MMSV

It is financial very strong with no borrowing with a RM28.4 mil cash in hand at 30 Sept. Effectively ever share is backed by 17.4 Sene patience and confidence with your investment

Can you find another Tech Co trading at this low PE of 11.35. I have scan all and there is none.

I have used Penta,Vitrox, Elsoft and Vis as peers comparison

For estimation of FY 17 EPS, I have taken (YTD Q3 + Estimate using Q3).
I compared the PE based on Projected FY 17EPS

1. Penta Projected FY 17 EPS 10.53 and trading at PE 23.07

2 Vitrox Projected FY 17 EPS 18.03 and trading at PE 30.28

3 Elsoft Projected FY 17 EPS 10.9 and trading at PE 24.77

4 Vis Projected FY 17 EPS 3.34 and trading at PE 18.54

5 MMSV Projected FY 17 EPS 14.62 and trading at PE 11.35


MMSV is at the most attractive valuation and trading PE of 11.35 compared to its Peers trading at PE 18.54 30.28 as shown above

Valuation of MMSV at PE 15 is RM2.19

Valuation of MMSV at PE 18 is RM2.63

For the Q3 result announced, it reported net profit of RM 6.4 mil with an EPS of 3.8 Sen and for the year to date to 30 Sept a net profit of RM 19.6 mil with an EPS of 11.8 Sen. The net profit would have been higher if not for the Forex loss of RM577K in Q3 and RM2 mil for YTD.

Financial period-to-date against preceding year corresponding financial period

Group revenue for the period ended 30 September 2017 was RM130.9 million compared with RM122.6 million for the period ended 30 September 2016, an increase of 6.8%. The increase in revenue was mainly due to the increase in demand related to Hard Disk Drives (“HDD”). The Group’s profit before taxation for the period ended 30 September 2017 improved to RM25.7 million from RM15.5 million registered in the previous financial period ended 30 September 2016.


Good FA fundamental with a good business and a dominant global market share of 40 in the HDD components it manufactured. A small bank borrowings of RM6.7 mil with RM 37.5 mil cash in hand. To-date in 2017, the Co had paid 5.5 Sen Dividend.
On 20 March 2017, after taking into consideration the recommendation of DUFU’s principal adviser, Affin Hwang Investment Bank Berhad, the Board has resolved not to proceed with the share split exercise and will evaluate alternative options. There could be a share split and bonus exercise given its Reserves of RM57 mil

Current year prospects by the Board

We expect sales to continue to remain favorable towards end of 2017 as our major product is driven by the growth in high-capacity nearline HDDs as well as stabilization of client storage demand. The long-term future of HDDs are likely rests with high capacity HDDs, particularly in data centers serving cloud storage applications. The demand for high capacity storage drives, enhanced performance, and lower storage cost is set to rise. Global internet penetration, the rise in e-commerce in emerging markets, and the current trend for high-resolution media standards are the likely drivers for the continuing rise in global data storage demand.

Nevertheless, the Group will continue to improve its operational efficiency and keep a tight rein on costs to ensure price competitiveness on its products. The Group is also working closely with existing and new customers in creating value to their supply chain, and will continue to seek opportunity to venture into new business segments that can synergizes with the Group’s current business model. With this in place and considering the continuing stable demand based on the current market trend and assuming that there is no volatility in the United States Dollar (“USD”) currency against Ringgit, the Group is optimistic about its earnings and growth in the coming quarters.

Current Price 135 and TP 186 based on conservative PE 12 (Potential Gain 51 Sen or 37.8%)

For the Q3 result announced, it reported net profit of RM 5.218 mil with an EPS of 3.24 Sen and for the year to date to 30 Sept a net profit of RM 18.319 mil with an EPS of 11.37 Sen
Financial period-to-date against preceding year corresponding financial period
The total revenue of the Group of RM63.725 million for the period ended 30 September 2017 increased by 107% (RM33.0 million) when compared to RM30.717 million reported in the previous financial period. The surge in revenue was due to higher volume of machines sold which resulted in the increase in net profit to RM 18.3 mil from RM7.0 mil reported last year, an increase of 162%. Gross profit margin has increased to 34.7% compared to last year of 32.6% for FY 2016.

Good FA fundamental with a good business in right IOT sector. Zero borrowing Co with RM 28.4 mil cash in hand with no borrowing. The Co is seeking to transfer to Main Board and had applied to SC on 26 Sept 2017.

Current year prospects by the Board
Given the continuing growth of the smart devices and automotive industries, the Board is confident of leveraging on them. The Board foresees that the performance for the remaining quarter will therefore be good.
Given the bullishness of the semi-conductor, smart devices industry and automotive industry, where MMSV operates, all it peers above (except for Vis) in recent Q3 results announced, all had reported increased in turnover and net profit. MMSV should be looking to also have positive Q4.

MMSV at valuation at 169 still has room for upside. It is currently trading at PE of 11.6 using Projected FY 17 EPS of 14.62. On similar basis, when compared to its peers Penta, Vitrox, Elsoft and Vis where these companies are trading at PE of 22.2, 28.8, 24.5 and 21.1 respectively.

Current Price 169 and TP 219 based on conservative PE 15 (Potential Gain 50 Sen or 29.6%)

Techfast

Just small net profit of RM1.348 mil for the Qtr 3 (YTD RM3.17 mil ) giving an EPS of 0.59 Sen and (YTD EPS of 1.39.) I project the EPS for FY 2017 to be 1.92, share price at 79.5, it is trading at PE 41.4

If I assume, FY 2018 EPS forcast is with 30% growth, 0.59X4X130%= 3.068 Sen, then Techfast is trading at a forward PE of 25.9, with assumption of 30% growth in EPS using Q3 as a base.

Valuation is still high in this bearish market. I would not buy the share. Take you profit when market open or cut your losses

Very irresponsible to sound May May day. There are so many component of cost elements in export counters. Some could also have imported raw material components in its cost which provide a natural hedge. Export Co could also have operation in Vietnam, Thailand and Indonesia. I think as professional you should not make swiping statement causing panic.

Coastal result should be out on 20th or 21st Nov. Good luck to all of us in Coastal. If co can deliver a net profit of RM20 mil giving an EPS of 5 Sen for Q1, then we are hitting jacpot.

Seeing the price holding on 16 Nov in adverse market condition and up marginally on 17 Nov on T3/T4 after high vol and price up, is a good sign.

We will know by 21 Nov evening.

Institution investors fellow spoke to management and was given guidance Q3 would be better than Q1 but not as good as Q2 due to completion and shipment of orders out which was high in Q2. I prudently estimate RM5 mil net profit with EPS 3.1 Sen for both Q3 and Q4 to estimate my valuation of MMSV . Projected EPS (8.13+3.1X2) = 14.33. For PE 15 to 18, its valuation range 214 to 258. Hope the management guidance is correct

The Co normally announce Qtr result by late Nov. I am expecting for this Q3 a net profit of minimum of RM 5 mil with a EPS of 3.1 Sen which though lower than Q2 but higher than Q1.

The 1st Half Year already earned net profit of RM13.1 mil with EPS of 8.13 Sen. Anything more than than RM5 mil would probably make Mr market happy and within market expectation and valuation would moves up accordingly. I am looking at this number based on buoyancy of semi conductor industry and the positive guidance per prospects statement by management in Q2 announcement.

B3. Current year prospects
Basing on the anticipated orders coming in from the growing smart devices, automotive and general lighting segments, the performance for the rest of the year will be good.


We have to wait for Q3 announcement for better guidance of its valuation

Good luck to all of us in this ship

Good FA fundamental and good business in right IOT sector but TA Chart may look bearish.

Valuation using PE 15 is 215 and PE 18 is 258 based on Projected FY 2017 EPS of 14.34 (1Half year EPS 8.14 Sen)

Zero borrowing Co with RM 20 mil cash in hand. The Co is seeking to transfer to Main Board and had applied to SC on 26 Sept 2017.

Share price range for 52 Weeks price 51 to 205

The Co reported Q1 FY17 (March) Net profit was RM4.104 Mil giving an EPS of 2.55 Sen (Q1 FY 16 EPS was loss -0.14 Sen) and for Q2 FY17 (June) Net profit was RM8.999 Mil giving an EPS of 5.59 Sen (Q2 FY 16 3.54 Sen).

Giving 1H FY 17 YTD Net profit of RM 13.102 Mil with YTD EPS of 8.14 Sen.

Current YTD Gross Profit margin of 35.5% is higher that of FY2015 and FY 2016 of 32.38% and 32.59% respectively.

Please do your own analysis

My Comment on 23 July 2017 to various Telegram Groups

Aemulus 1H EPS 0.64. Q2 EPS 0.56 Sen. Highest EPS achieved in 2015 2.56 Sen. Historically never achieved more than 1 Sen per Q. Assuming EPS for Q3 and Q4 of 1 Sen per Q. Projected EPS 2.64 and at current price of 62, it is trading at forward PE 23.48. My view not attractive.

My Comment on 12 September 2017 to various telegram Groups

On Aemulus beware that on 12 Sept, its share price moved up from 59 Sen to 65 Sen. From 13 Sept to 15 Sept, three of the directors orchestrated sales 2.5 million of their shares ranging from 63 to 65 Sen and price retreated to 62.
I have warned that Aemulus is overpriced as at 62 Sen it is trading at forward PE 34.4 based on EPS for 9 mths to 30 June plus Q3 EPS of 1.8 Sen ((1.24 +0.56) .Just a cautious reminder.

Assumption for Projected 2018
When I used the Q4 EPS of 0.48 X 4 with a 30% growth (an aggressive projection) to get my projected FY 18 EPS of 2.496 Sen, let say 2.5 Sen. Thus the forward PE of 26.4 based on aggressive growth of 30% from FY Q4 net profit of RM2.097 X 4 X 130% = a net profit of RM10.9 mil, giving a projected FY 18 EPS of 2.5 Sen.
Historically, the Co maximum net profit was RM 9.067 Mil in 2015. In my view a growth of 30% in Net profit is also a long shot.

The Co just announced in Q4 17 a net profit of RM RM2.097 Mil and FY17 full year net profit of RM 7.551 Mil giving an EPS of 0.48 Sen for the Qtr and FY 17 of 1.42 Sen.
At 66 Sen closing today, with FY 17 EPS of 1.42 Sen, it is trading at PE 38.37. The forward PE is 26.4 based on below aggressive assumption of growth of 30% in net profit. Its market Capitalisation is RM 289.6 mil for a Co making net profit of RM 7.551 mil.
Conclusion
Overvalued and no proven deliveries since 2012. If you are buying this Co , will you pay RM289.6 million.

Sales fluctuates, as Company sells testing equipment of various spec and models to different customers with different price of each specification. Timing of completion of construction of a batch of orders and billing will affect quarter to quarter sales. This is the nature of the business model. Important to observe is that sales is on uptrend and Gross Profit margin is increasing from FY 15 to FY 17.

Only Q1 announcement at month end would tell.

In today adverse market sentiment, Coastal still manged to stay up. Looking at this, I personally believe, market could have leakage of coming result which probably would be positive, otherwise closing price still green is unlikely or very strong operator still wanting it up

Conclusion on Valuation

Based on the above, I projected the Net profit for Q3 and Q4 to be not less than RM 5 Mil for each Qtr, giving an estimated EPS of 3.1 Sen per qtr. Thus I projected FY 17 EPS to be 14.34 Sen (8.14+3.1X2).

Using a PE of 15, the valuation for MMSV using Projected EPS of 14.34 would be 215 and at PE 18, the valuation would be RM258.

At current price of 169 on 14 Nov, MMSV is trading at Projected FY 17 PE of 11.8. Thus there is a lot of upside in MMSV at this entry price and compelling to look at.

You can also take comfort that an Independent Director of the Co recently from 8 September to 20 October bought 320K shares at price range of 178 to 187.

In our engagement (Fund Managers visiting the CO) with management just before Q2 announcement, we were told that for Q2 due to timing of delivery of large number of units of equipment completed, top and bottom line were higher. The guidance for Q2 given was reliable.

We were given guidance that Q3 and Q4 would be higher than Q1 for both top and bottom line but however lower than Q2 in a recent follow up.

The Company foresees the semiconductor and LED test handler’s growth to be driven by the ramp up in the semiconductor industries and the High-Brightness LEDs in the ICT as well as automotive lighting sectors. Growth may also be driven from the increased application of chips in consumer electronics due to increasing convergence in computing, digital media and wireless technology.


Current year 2017 prospects by the Board extract from Q2 2017 Announcement

Basing on the anticipated orders coming in from the growing smart devices, automotive and general lighting segments, the management expect performance for the rest of the year (2017) will be good.

Current Price 169

Compelling to look at MMSV as it is oversold at 169.

Good FA fundamental and good business in right IOT sector but TA Chart may look bearish.
Valuation using PE 15 is 215 and PE 18 is 258 based on Projected FY 2017 EPS of 14.34 (1Half year EPS 8.14 Sen) Zero borrowing Co with RM 20 mil cash in hand. The Co is seeking to transfer to Main Board and had applied to SC on 26 Sept 2017.
Share price range for 52 Weeks price 51 to 205

The Co reported Q1 FY17(March) Net profit was RM4.104 Mil giving an EPS of 2.55 Sen (Q1 FY 16 EPS was-0.14 Sen) and for Q2 FY17 (June) Net profit was RM8.999 Mil giving an EPS of 5.59 Sen (Q2 FY 16 3.54 Sen). Giving 1H FY 17 YTD Net profit of RM 13.102 Mil with YTD EPS of 8.14 Sen. Current YTD Gross Profit margin of 35.5% is higher that of FY2015 and FY 2016 of 32.38% and 32.59% respectively.

Please do your own analysis

Coastal would hinge on coming Q1 FY18 result. I was expecting Q4 FY17 to turn around given Q3 FY17 reported EPS of 5 Sen. After Q3, I was given guidance by my source that COASTAL has turnaround.

Unfortunately in Q4 17, there was impairment of RM26.1 mil resulting in lower EPS. If not for the impairment EPS would have been 6 Sen. Thus operating profit would hav maintaine 2 good Qtr without impairment exp.

Thus I am betting on the Q1 FY 17 to be good. A Homily Chart Staff just said Coastal is a Dark Horse Born.

I am betting on coming Qtr result to be good confirming the turnaround. I could be wrong but for good return I am betting on this.

Someone ask for my analysis, just give me ur No. for contact thru telegram

Integrity issues were resolved. It is history now. All money loss has be reclaimed back.

Cannot attached here

Dufu at 140 is trading at Historical PE 8.84 (based on FY 16 EPS of 15.83 Sen) and my estimate EPS for FY is 16.1 Sen (1H 7.9 Sen + Q2 4.1 X2) giving it a forward PE 8.7.
At PE 10, the valuation would be 161. I am still trying to find out whether Notion HDD Sales due to the fire incident would flow into Dufu, if so, then the valuation would be rerated.

A discussion with the management of Dufu by a friend before Q2 result was given the guidance FY 17 would be better than FY16 in terms of operating profit after taking away all exceptional gain. i.e take away all exceptional income.
For Q1 2018, both Seagate and WD has reported better results and higher shipments of HDD per terabyte (Source Q1 2018 Report). Western Digital reported 7% growth in revenue and 7.6% growth in HDD shipments. Seagate reported 9.4% growth in revenue and 13 % growth in HDD shipments
DUFU also has 40% global market share in the HDD components it manufactured. With the higher shipments of HDD by both Seagate and WD, I believe DUFU should be good this coming qtr 3 reporting.
Dufu coming Q3 result should be good given both Seagate and WD reported higher shipments of HDD and that Dufu had 40% global market share as stated by management.

My TP if Coastal can deliver about E PS 5 is around RM2. We will hv to look at Q1. I hv hold my shares since June.

I would said difficult to call a TP for COASTAL unless u hv analysed all the Qtr result. In Q3 FY 16 EPS 5.08 and Q4 was 2.69 but if I adjust for the impairment on OSV of RM26.1mil, the adjusted EPS is 6.16 Sen. Look at my spreadsheet analysis. I conclude Coastal may hv turnaround.

Two sparrows may not make a Summer. Thus Q1 18 result if around EPS 5 sen, confirming the tur around then the upside is high. Coastal can command at least PE10. That is my basis of RM2.

Thus TP160 on prudent is realistic and hinge in Q1 result

A good bet for mid term upside. NTA 3.40. Co's total borrowings RM435 mil and cash in hand RM412 mil. Strong Balance Sheet and cash flow generated from operation for FY 2017 was RM32 mil (2016 RM 206 mil) Coastal is one of the key player in the world in OSV ship building and chartering. A number of its competitors had went down under in the recent turbulent time, eaving the fittest to survivie. The Coalso has another 11 yeras of contract of US 30 mil per year for Jack-Up Gas Compression Service Unit (“JUGCSU”) is the key contributor under Vessel Chartering Division with PANEMEX, national petroleum Co of Mexico

The high vol of Coastal shares on 6 November was due the Major shareholder, Ng Ching Heng's wife buying 1 mil shares at 1.26 in the market. I take this as positivie development and indication good time is round the corner.

Chartwise,

Stochastic cross occured 6 Nov, parabolic reversal showing uptrend, force index blue, force Index blue and CCI (100) blue crossing red.

Resistance 130 and support 125

The Qtr result did not follow thru the momentum of Q2 top and bottom line. I would conclude it growth rate is not as high as what we all expect the top and bottom line would quantum leap. The fact is its Gross Profit for 9 mths of FY 17 is 23.57% compared to FY 2016 and FY 2015 of Gross profit margin of 26.26% and 26.98% respectively. A deterioration of GP margin

Q2 to Top and Bottom line could be due to a one off contract of services done and not recurring if recurring, a major customer or income could had disappeared in Q3.

As Kronor core business to me is a recurring in nature whenas a customer secure would remain unless due to service failure and customer terminate service.

Sure data centres are growing fast, but then there are plenty of players in this space including the big boys Amazon and IBM as quoted by a friend.


No doubt it is a growing profitable Co.

Response to Priority Dufu

We have to be professional and knows what you write and I rebutting your findings:

1. There is no way Dufu has 150 CNC Machine spare capacity for rent and I have look at the Annual Report FY 2016 and 1H Qtr report, there were no material Capex expenditure involved since 1 Jan 2015 to match that expansion of having 150 CNC Machine surplus capacity .

2. Common sense would tell you every company would expand its business progressively based on secured business and not buy 150 CNC machines to wait for business and wait for Notion disaster to rent it out.

3. Dufu plant is in Penang, how to transfer staff over from Klang. If you are Dufu , would you want your competitor staff to be at your factory to learn yout trade secret and technology.

4. Both your suggestion does not make business sense. The likely outcome, is Seagate and WD would channel the component to Dufu. Dufu is a qualified vendor of both Seagate and WD. For other components like Camera Parts, Dufu plant need to be qualify by Notion Customers before you can transfer the production. This process take about 2 months..