Comparing Dufu with jcy Q1, we can see that Dufu's profit stream is much more resilient than its competitor , & looking through Dufu's website , it seems to me dufu should be worth much more at current share price , expecting market rerating in future :)
It's already at net cash position (cash & cash equivalent - borrowings) , the next FY should see dufu at a much STRONGER net cash position, the company size is still quite small, therefore, there's still lots of room for growth...
Key Catalysts, 1) Increase in sales growth (Increasing market share servicing Western Digital & SeaGates) w new product Mix 2) Increase in Profit Margins, which further accelerated EPS growth 3) Multiple Share buybacks, increases ROE & EPS 4) PE Mutiple expansion from current PE of 7+ to 13-15, which is approx one FOLD from current share price, due to company's strength to strength business.
All of these will greatly Propel Dufu Tech's share price much Higher!
bavos, sorry don't have wechat. I'm an old man and handphone poor experience. Good to know that you have the same view. DUFU fundamental and technical look good. Your approx of ONE FOLD is the same as my opinion.
According to my fair value calculation, it is worth 1.04 with just a conservative growth rate of 3%. At 0.635 it gives me a MOS(margin of safety) of about 60%. I just bought a little bit more.
cheahsk, we are in the same frequency. I excluded the margin of safety but 60% is a bit conservative. Also your fair value is also a bit low. Therefore, TP RM1.00
I hope they are able to quickly expend to other products and not rely solely on HDD which, though being threatened by Solid state drive, is still holding quite well as most laptop users own at least one external HDD. I own two.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
PenguinDad
1,729 posts
Posted by PenguinDad > 2016-07-29 13:32 | Report Abuse
Sound very sick!