Dufu Technology Corp. Berhad

Titan Trading Notes for Wednesday [30/4/2025]

Market Overview:

KLCI: 1,515 (-0.4%) 🩸

Decliners: 500+

Volume: 3B total (1B HSI warrants)

🔍 Technical Focus

$KPJ / 5878 (KPJ HEALTHCARE BERHAD) (Healthcare)

Price Action: Broke above RM2.80 resistance with elevated volume.

Key Levels:

Support: RM2.80 (previous resistance)
Resistance: RM2.87 (today’s high) → RM3.00
Notable: Absorbed EPF-related selling pressure.

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) (HDD Components)

Price Action: Rebounded from RM0.90 monthly support to RM1.15.

Key Levels:

Support: RM1.08 (weekly close basis)
Resistance: RM1.20 (recent swing high)
Notes: USD weakening against the MYR may impact profit margins.

Key Takeaway:

Overall market sentiment remains sideways and we're still suffering from a liquidity drain here. Funds slowly buying back, but selectively.

Tech side overall showing some rebound signals, but overall still quite uncertain.

The Technology Stock that You NEED in Your Portfolio in 2025

NAND from Micron for Illustration Purposes for Storage Products.

If you're looking for a solid tech stock to invest in this year, MClean Technologies Berhad (KLSE: MCLEAN) should be on your radar. The company has been making big moves to grow its business and improve its financial performance, making it a strong contender for 2025.

Recently, MClean acquired We Total Engineering Sdn Bhd (WTE) for RM6.04 million. This purchase helps MClean expand into plastic injection moulding, allowing it to serve industries like electronics, automotive, oil and gas, and medical devices.

To fund this expansion, MClean raised RM13.2 million by issuing 49 million new shares at RM0.27 per share. The company is also turning around financially, reporting profits for three straight quarters after a new major shareholder stepped in. In the latest quarter. MClean recorded a profit before tax of RM3.98 million, and for the full financial year, the PBT reaches RM6.37 million, which also means this is the fourth consecutive profitable quarter for the company.

Dufu Joins the Party…?

A big recent development is that Dufu Technology Corp. Berhad (KLSE: DUFU) has taken a 25% stake in MClean’s subsidiary, DWZ Industries Sdn. Bhd. This is a huge deal because Dufu is a well-known company in precision machining, making high-precision parts for industries like Hard Disk Drives (HDD), industrial safety, medical devices, and consumer electronics. For the avoidance of doubt, the stake held by MClean remained unchanged.

The entry of Dufu into DWZ Industries opens up big opportunities for both companies. Here’s how they can work together:

A. Hard Disk Drive (HDD) Market – MClean’s expertise in precision cleaning perfectly complements Dufu’s expertise in making HDD components. This partnership allows them to offer better solutions to their clients.

B. Electronics and Industrial Sectors – Both companies are involved in semiconductors, electronics, and oil and gas. Working together can help them reach more customers and improve efficiency.

C. Medical and Consumer Electronics – Dufu’s precision manufacturing combined with MClean’s production capabilities means they can create more innovative products for the growing medical and consumer electronics markets.

With all these strategic moves, MClean and Dufu are well-positioned for growth in 2025. MClean’s recent expansion and financial turnaround show that it is on the right track, while Dufu’s investment in DWZ Industries opens new business possibilities.

Furthermore, there is a potential where Dufu could 10x the revenue of DWZ Industries, which is currently generating approximately RM1.0 million revenue per annum. And with this collaboration, MClean Technologies may slowly increase their stake in Dufu to complete the value chain cycle.

For investors looking for a tech stock with strong growth potential, MClean Technologies is a company worth considering. With its new partnerships, rising profits, and promising industry prospects, this stock could be a game-changer in your portfolio this year.

$MCLEAN / 0167 (MCLEAN TECHNOLOGIES BERHAD)
$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD)

Sharing from my relationship manager

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WHAT DC JITTERS?; LOOK BEYOND USUAL TECH PLAYS; MRDIY COMEBACK'S REAL?; MAXIS INTO SOLAR; GLOVES COMEBACK NOT AS EASY; O&G SERVICE PROVIDERS ALRIGHT; MIXED RESULTS SEASON...

*MY MKT:* *WHAT DC JITTERS?..* Understand the near-term jitters but judging by how things are panning out, long term thesis is *intact* as *ECOWORLD* can attest to following its *3rd land deal* in under a year, latest being with *MICROSOFT worth RM690mil.* Also *comforting* to know MICROSOFT’s planning to *develop/operate DC* on acquired land, further *proof* that MY’s DC space remains *resilient.* Further, this came on back of *AirTrunk’s plan* to develop *2nd DC in Johor* which is good for likes of *SUNCON, IJM & GAM.* True enough, *SUNCON* delivered *strong 4Q* thanks to *DC projects* & in *our call (>50 clients)* with mgmt., it’s clear that its *5 DC projects* have potential to be *upsized* with 1-2 full-sized conversions by *1Q25 worth c.RM2bn.* Meanwhile, mkt doesn’t seem to ascribe *much value to YTLP’s* DC ventures as *take-up* for 80MW balance needs to pick up *meaningfully + enough details* to justify further rerating.

While focus been on PROPERTY & CONSTRUCTION players, uncertainty from the noise gives us opportunity to *look* beyond the *usual DC/tech angle.* For instance, Trump’s tariff on *US Med Tech* market, though tough to quantify and is a *concern* for most Med Tech companies which have *manufacturing plants in Mexico & China,* should be taken *POSITIVELY by Msian* players as we could be *alternative hub* and likely *+VE mid-long* run for *PENTAMASTER & GREATECH.* At WESTERN DIGITAL analyst day, was highlighted that *NAND demand* to grow at *mid to high teens* rate *longer-term* though subdued *PC/Smartphone demand* in near term, could mean *NEUTRAL near-term* for *NOTIONVTEC & DUFU* but overall *+VE in longer run* as enterprise *storage* to drive overall *HDD demand* on AI storage.

As we’re constructive on *private consumption,* *MRDIY* still gives best *exposure* to this theme esp. having fallen *c.20% ytd*c.75% upside* with attractive *P/E of only 16.7x vs global peer’s 34x.* But feedback so far point to *fears of weak 4Q24* results as funds were scarred by *weak* release of its *3Q in Nov* which is understandable. Yes, earnings in *short term* could be dragged by *declining SSSG/automated* warehouse issues, but with more *store rollouts,* strong consumer *sentiment,* steady *gross margins* & *KKV’s contribution* should only help delivery of strong *3-yr EPS CAGR of 24%.* This on top of its plans to grow into *untapped* areas ie East Msia/Coast which is why, its *decline* really looks *overdone* plus *4Q* is when bulk of discount *incentives are booked,* which means 4Q should be *better QoQ.*

*Mixed results* so far at least for big ones. *MAXIS’ inline* with Prem’s/consensus as guidance for FY25 is similar to his estimates except for capex where he includes 5G capex. Interestingly, MAXIS like TIME has *ventured into solar panels* as a new revenue stream to increase customer retention. Obviously, *HARTALEGA* made waves with its disappointing *post briefing* updates as sales vol. could be *weaker QoQ* in March due to *frontloading in previous qtr* and *difficulty* in raising ASP despite US/China spat. But share price’s slight *rebound* following selloff shows there’s *trading angle* to this though caveat is, *cost pass through* ability isn’t as easy as *pre-pandemic.* O&G, while *DIALOG* gave a scare, *PERDANA/DAYANG* delivered an overall *strong 2024* though still fell short of *expectations* given *slower final qtr (monsoon)* but more importantly, now *Petronas’* outlook’s *addressed,* jobs & earnings for *services* sector will only *improve.*

*RECENT FLOWS: Results season flows have been better as we net bought of late though foreign funds cont. to sell. Heavy buying flows on names like MAY, MISC & MRDIY. Overall, mixed results so far.*

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD)
$HARTA / 5168 (HARTALEGA HOLDINGS BERHAD)
$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)

Continuing the list here (part 3):

$PECCA / 5271 (PECCA GROUP BERHAD) (MC: RM917.4Mil) - Dividend payout policy of 40%
$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) (MC: RM984mil) - Dividend policy of paying up to 30% of PATMI
$AMWAY / 6351 (AMWAY (MALAYSIA) HOLDINGS BERHAD) (MC: RM1.15bil) - Dividend payout policy of not less than 80% of the annual net earnings
$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) (MC: RM1.16bil) - Dividend payout approx. 50% of PAT
$VSTECS / 5162 (VSTECS BERHAD) (MC: RM1.2bil) – Dividend payout of minimum 30% of net profit

MC: Approximate Market Cap

**Note: the dividend payout is subjected to cash flow, valuation gain/loss of properties, etc. (for details please read their respective annual reports)

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) - 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) - Expects that the worst is over

From what I've been reading over the years, DUFU's management team has always been on the conservative side when making any statements and forecasts. So now, for the first time in a while, that their tone has started to turn positive, it's worth paying attention to.

Dufu had just announced a pretty solid set of results, with PAT rising about ~90% QoQ and ~150+% YoY, understandably coming from a low base, alongside another 1.5sen dividend. For those who had been following the memory market, you'd know that it was one of the hardest hit sectors vs other tech supply chains; but the latest results are not particularly surprising considering that both WD and Seagate had reported improving numbers in recent months.

Even other HDD players like $TEXCHEM / 8702 (TEXCHEM RESOURCES BERHAD) $NOTION / 0083 (NOTION VTEC BERHAD) $JCY / 5161 (JCY INTERNATIONAL BERHAD) in bursa alluded to the improving prospects in the sector.

On one hand, since the information is already "quite widely known", I wonder if the good numbers are already priced in considering DUFU had rallied from ~RM 1.7 to ~RM 2.3 this year. However, regardless of that, I, and so does DUFU's management, believe that the memory sector is reaching that pivoting point where "the worst is over" and we may start to see incremental improvements over the longer term here.

1. DUFU says that 2023 was "the lowest point" in the HDD market cycle, and that they are at the tail end of an unprecedented market downturn.

2. Within their operational businesses, they are seeing modest increase in demand.

3. They believe that the global semiconductor sales are picking up, and that the memory sector is seeing a potential onset of a new growth cycle.

4. Inventory adjustments has been completed and they are seeing increased demand in electronics and AI-related applications.

5. They are confident that the toughest phase is over and are looking towards growth again.

$MPI / 3867 (MALAYSIAN PACIFIC INDUSTRIES BERHAD) $DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) $PENTA / 7160 (PENTAMASTER CORPORATION BERHAD) $VITROX / 0097 (VITROX CORPORATION BERHAD)

11 July 2024

Our Stocks Watchlist

Dufu @ RM2.63 – Buy and hold for long term and Company is benefiting from both Seagate and Western Digital expected strong Q4 (June 2024) with revenue growth and volume of HDD shipped from market sources. Both Dufu’s customers are looking at further double digit % growth for Q4 June 2024

Notion @ RM1.98 – buy on weakness below RM1.80. Company reported good Q1 (EPS 1.56 Sen & PAT RM8.024 mil) and Q2 (EPS 2.72 Sen & PAT RM14.035 mil) with 1H net profit of RM22.059 mil with EPS of 4.27 Sen. The Co HDD business will be benefit from Western Digital Growth as WD is the Company’s HDD customer. Company had stated in no uncertain term that 2H will be better and we projected FY 2024 EPS to be 10 Sen

IFCAMSC @88.5 Sen – speculative and for trading purpose for short term investment. Just ride on the market momentum and business news on Einvoicing and after Q2 Report would have better feel of Company’s outlook.

ADB @RM1.28 – buy below RM1.20 and ride on the market momentum and business news on Einvoicing, after Q2 30 June Report would have better feel of outlook.

PIE @RM 6.37 – Too late to board the bus and valuation is ahead of earnings.

RGB @48 Sen) – Buy and hold when below 49 Sen. RGB is taking a breather and consolidating around 50 Sen. Valuation of 60 Sen to 72 Sen based on projected FY 2024 profit. On 31 May the Co secured a RM381 mil contract for delivery of gaming machines in FY 2024 and expected 70% delivery in Q3 and 30% in Q4. Thus, 2H will have a very strong result. Potential catalyst for further growth and to have dominance gaming machines market in Philippines with the regularization of the gaming industry and Philippines Players upgrading their facilities with the booming gaming industry. Looking at recent price volume, we think there is still leg to move up


QES now @71.5 Sen is valuable stocks to enter. Share price year range 46 Sen to 78 Sen. We heard trading of PPE for steal industries orders had been overwhelming and staff are paid above 3 mths bonus. Strong orders were shipped out in Q2 30 June and a rerating is due.

Recently secured orders from a German MNC with worldwide presence for test equipments. This could give Co to make inroad worldwide if the customer found it to be good and reliable.

Inari @RM 3.96 is probably fair valued achieving our target valuation. Better outlook and profit when their China Plant commenced operation with huge potential as Chinese semiconductors and RFID sensor Companies or Players will need Inari JVC to support their development.


ONG Companies
Deleum@ RM1.30 – good to hold and assess the co progress.

As at the end of the first quarter of 2024, Deleum maintained a strong cash position, boasting cash and bank balances ofRM279.8 million, an increase of RM63.9 million from RM215.9 million as at 31 December 2023. Shareholders’ equity remained steady at RM409.5 million as of 31 March 2024. Currently, Deleum’s order book is robust at RM594.7 million, with the majority of works and equipment slated for delivery within the next 12 months. Below is Q1 March Press Release



Coastal – just hold and no point cutting now just hold and wait for confirmation of extension of contract and new positive developments.

Ulicorp @RM2.21 – already FAIR VALUED AND achieved target valuation compared to our recommendation @RM1.40 in March.

SKB Shutters – only for investors with longer term perspective will be extensively involved with data centre buildings and waiting for Mr Market rerating

Samchem – Chemical and distribution business is seeing improvement in performance.

Bahvest @56 Sen. – Monitor closely when the BV Warrant expire on 20 Aug 2024 the share may vroom vroom. New shareholders and management would have cleaned out the mismanagement and gold pilferage.

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) $NOTION / 0083 (NOTION VTEC BERHAD) $SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) $RGB / 0037 (RGB INTERNATIONAL BHD) $DELEUM / 5132 (DELEUM BERHAD)

Additional Listing Announcement /Subdivision of Shares

Malacca Securities TOP PICKS 2ND HALF 2024...

- With the earnings from the AI theme expected to grow, coupled with the Fed hinting on rate cut this year, we expect Wall Street to stay positive at least for the rest of 2024. Buying interest is likely to spillover on the local front, with data center, AI, and cloud services driving the markets higher on various fronts, coinciding with the stronger July month on Bursa exchange.

• For the data center and AI catalysts, it may benefit the Construction, Property, Building Materials, and Utilities sectors, while the Technology sector may catch up in the long run as we may turn into SEA chip powerhouse.

• Meanwhile, we believe the Renewable Energy and Technology will be tagged towards the growth and ongoing execution within the NETR and NIMP. Other key sectors that we like include Furniture, Shipping and Consumers.

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) $INFOTEC / 0253 (INFOLINE TEC GROUP BERHAD) $SCOMNET / 0001 (SUPERCOMNET TECHNOLOGIES BERHAD) $PPHB / 8273 (PUBLIC PACKAGES HOLDINGS BHD) $TECHBND / 5289 (TECHBOND GROUP BERHAD)

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Additional Listing Announcement /Subdivision of Shares

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Key Takeaways from $DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) AGM

📌 Management indicated that this year's profit will maintain a low double-digit growth rate.
📌 The factory's utilization rate averaged 60% in 2023, and the current utilization rate is 70%.
📌 Management expects HDD profit growth of 10% and non-HDD profit growth of 20% in the coming years.
📌 HDD still accounts for as much as 70% of total revenue, while the remaining 30% comes from other businesses.
📌 The new factory in Bukit Minyak, which focuses on sheet metal fabrication, has been operational since last year. Management expects this business to grow by 20% this year and maintain a growth rate of 10-20% over the next five years.
📌 In summary, management will continue to expand the business market to increase market share while exploring new fields for development opportunities.

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD)

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

General Meetings: Outcome of Meeting

Additional Listing Announcement /Subdivision of Shares

OTHERSDUFU TECHNOLOGY CORP. BERHAD ("DUFU" OR "THE COMPANY")
- EXTENSION OF EMPLOYEES SHARE OPTION SCHEME ("ESOS")

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) broke out for real 😂 treating this as paper trading practice

26 April 2024

Our Stocks Watchlist

Dufu @ RM1.78 (Now RM2.09) – Hold for long term and should be benefiting from both Seagate and WesternDigital strong Q3 (March 2024) reported with revenue growth and volume of HDD shipped which we have posted for your reading. Both looking at further double digit % growth for Q4 June 2024

Notion @ 59.5 Sen – Though we do not like the management performance and delivery of good result. Company had done kitchen sinking for FY 30 Sept 2023 of RM39 million with impairment of PPE of RM31 million and inventory write down of RM 8 million respectively and Company reported good Q4 Sept result could be in the process of turning around. The Co HDD business will be benefit from Western Digital Growth as WD is the Company’s HDD customer. Monitor their Q1 2024 result and the business outlook and look at the price volume movement to move in.

Notion bonus issue of warrant of 10 for1 and the Company’s securities will be traded and quoted “[EX-BONUS ISSUE]” as from: 02 May 2024 and the last date of lodgment : 03 May 2024

IFCAMSC – just ride on the market momentum and business news on Einvoicing and after Q1 Report would have better feel of outlook.

ADB - just ride on the market momentum and business news on Einvoicing and after Q1 Report would have better feel of outlook.

PIE @RM 3.39 (Now RM5.76) – Too late to board the bus

RGB @30 Sen (Now @40 Sen) – potentially catalyst for further growth to have dominance gaming machines market in Philippines with regularization of the gaming industry and Philippines Players upgrading their facilities with the booming industry. Looking at recent price volume, we think there is still leg to move up

ONG Companies
Deleum@ RM1.30 (Now RM1.43) – good to hold and assess the co progress.

Wasco @ RM1.29 (now @RM– a gem to be for 2024 with project in hand

Coastal – no point cutting now just hold and wait for confirmation of extension of contract and new positive developments.

Ulicorp – value buy below RM1.40 (Now @RM1.50)

SKB Shutters – only for investors with longer term perspective

Samchem – Chemical and distribution business is seeing improvement in performance.


$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) $NOTION / 0083 (NOTION VTEC BERHAD) $IFCAMSC / 0023 (IFCA MSC BERHAD) $PIE / 7095 (P.I.E. INDUSTRIAL BERHAD) $RGB / 0037 (RGB INTERNATIONAL BHD)

Change in Remuneration Committee - MR LEE YOKE KHAY

Change in Audit Committee - MR LEE YOKE KHAY

Change in Nomination Committee - MR LEE YOKE KHAY

Change in Boardroom - MR LEE YOKE KHAY

OTHERSChange of Composition of Board Committees
a) Risk Management and Sustainability Committee
b) Investment Committee

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD)

Just collect when below RM2.10, it is a buying opportunity. With recovery of HDD Industry, its top and bottom line will improve going forward. I am looking at valuation above RM3 when Q3 result is out in November 2024. I am hearing strong performance in HDD in both Dufu and
$TEXCHEM / 8702 (TEXCHEM RESOURCES BERHAD)

Additional Listing Announcement /Subdivision of Shares

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) just broke out with strong volume..
worth taking a look 👀