[%MvCO%] - Beneficiary of the rising HDD demand

After close to 3 years of downturn in the storage market, management is indicating that the worst may be over as they are witnessing modest increase in demand. 

However, in terms of margins, management do not expect it to rebound to previous high of 20+% but to stay at low to mid-teen range. The lower profitability is largely due to the recent expansion in China where it increased its opex and finance costs but not anticipating any significant growth in business. At the last AGM, management indicated that 3 out of the 4 new China plants are to be rented out.

At the current valuation, I would not rush to initiate any position but only to continue monitoring its performance.

$KLSE-DUFU - Beneficiary of the rising HDD demand

After close to 3 years of downturn in the storage market, management is indicating that the worst may be over as they are witnessing modest increase in demand. 

However, in terms of margins, management do not expect it to rebound to previous high of 20+% but to stay at low to mid-teen range. The lower profitability is largely due to the recent expansion in China where it increased its opex and finance costs but not anticipating any significant growth in business. At the last AGM, management indicated that 3 out of the 4 new China plants are to be rented out.

At the current valuation, I would not rush to initiate any position but only to continue monitoring its performance.

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD)