Anyone buying this counter? I know there's a lot of negative news on this counter at the moment but what's the outlook of this company 1-2 years down the road?

I am buying this counter in hopes of reaping high returns within a year or so...

And what's the negative news about the stock that is driving the stock down?

5276, dont say no share lmao

The stock has been trading sideways mainly due to lower demand for their HDD components.

Taken from the edge nov 1 article:

“Based on the forecast in hand, we foresee HDD demand will continue to remain weak in line with our recent industry checks suggesting inventory adjustments will likely continue at least for the next quarter towards end of 2022. On top of that, demand is seasonally weak in the first quarter of 2023.”

For 3QFY2022, Dufu's net profit fell 18.92% to RM16.42 million, from RM20.25 million a year ago, on lower revenue.

Earnings per share shrank to 3.1 sen in 3QFY2022, from 3.8 sen in 3QFY2021.

Revenue for the quarter declined 17.88% to RM74.72 million, from RM90.99 million a year before, mainly due to the decrease in revenue related to HDD components.

They will also lose out on forex gains once our rm strengthens against the usd.


But overall I do feel that the company might see some bright future possibly by year end. They're planning to expand their production capacity with their recent purchase of the factory in Penang which will be fully functional within 3 years.

I feel it's a buying opportunity at this level. Just my two cents

What's your take on this?

Pretty spot on your analysis.

So, you reckon the best strategy is to be the Early Worm?

Or don't you rather want to take the safer approach? Wait and see.

Wait for actual indication in their earnings that the Q3 earnings was just a temp blip?

good take, but i feel that it would depend highly on cloud now which needs more server

that said, decision makers are slowly leaning towards SSDs for servers than HDD dy so hopefully the management prepared enough for this

Hi true. So it will be a slightly bumpy road ahead and the only way for them to stay relevant is probably to switch up their business model. I do feel that the management team is pretty prepared for the uncertain times ahead.

As for me, I will take a slow and steady approach in accumulating this stock.

Let's see how it fares in the next coming months.

With cloud in play more cyber attacks are expected 🤦‍♀️

Better off buying cyber companies like LGMS instead