D&O trade ideas
D&O based on automotive sales in China D&O Green Tech Berhad is engaged in provision of management services (including plant facility services). The company segments include Asia, Europe, US and other countries. 45% of its revenues coming from the automotive sales from China so you need to look at how the overall automotive sector in china is behaving which will relates to this company.
Sector: Technologies (Semiconductor)
Subsidiaries
- Omega Semiconductor Sdn Bhd (Omega): Investment holding company
- Dominant Opto Tech (Dominant): manufacturing semiconductor components and machinery. Korea engage in merchandising semiconductor components. Shanghai engaged in development of semiconductor application technology, installation, wholesale and retail semiconductor devices, electronic components, electrical equipment for lighting, electronic display screen, lighting fittings, import and export related products.
Fundamentally:
Market Cap: 792mil
Current price: RM0.695
EPS: 16.91 (Good)
EPS*8.1: 136.971 (undervalue)
PE Ratio: 17.8 (OK)
ROE: 20.13 (Good)
NTA: 0.84 (Undervalue)
Financially, the company is in positive net profit since 2014.
Institutional investor includes Keen Capital Investment (13%) and KWAP (4.92%)
Dominant Opto Tech
- Dominant is one of the leading light-emitting diodes (LED) manufacturers in the world offering high-performance solution for world renowned car makers.
- Recently the opened a new headquarter in Melaka (Batu Berendam)
- Global automotive lighting market was worth about $32.8 billion in 2025 as demand for intelligent lamps, especially automotive LED lamps picks up. The new facilities in Batu Berendam will ensure they continue to support and sustain the industry demand globally.
- Overall, this year would have been an exciting growth year for D&O, despite COVID-19 pandemic. D&O is allowed to run its operation with only 20% of its workforce, translating into 20%-30% production capacity during MCO. This is a sharp decline in utilisation of the new facilities in Batu Berendam.
- The china market, contribute about 45% D&O automotive LED sales saw its auto sales plunged 79% drop in February now picking up back to normal production.
- On positive note, China auto industry is expected to remain robust for the year as operations have resumed.
- This will boost D&O sales to china towards the second half of the year, neutralizing the impact of the sharp slowdown in the first half.
D&O, a tough nut to break?Among one of our favorite counters, been trading in and out this counter multiple times since it was trading above 0.60 point.
It can be seen that D&O is trying to break 0.765 resistance barrier multiple times with no avail.
A good example of EMA rebound stocks.
Watch out for possible further upside once it breaks the 0.765 level with volume.
D&O : Membuat pullback dan menghampiri breakoutAssalamualaikum dan salam sejahtera,
1. D&O membuat support pada garisan harga 0.595
2. Resistant berikutnya adalah pada 0.625
3. Sekiranya harga bertahan di atas support ini dan berjaya melepasi tahap rintangan tersebut, maka D&O mempunyai kekuatan untuk meneruskan kenaikan
4. D&O telah membuat breakout downtrendline, dilihat sedang membuat reversal.
5. Sentimen bajet 2020 mungkin memberikan catalyst kepada D&O dalam aspect green technology seperti yang diberikan tumpuan oleh kerajaan Malaysia
Sama-sama kita kaji dan lihat apa perkembangan seterusnya
Selamat berdagang
Dr. Mohamad Najib Mat Pa
MSTA (UK), CFTe (US)
Disclaimer : Untuk kajian chart sahaja, bukan buy call
D&O: Bullish BreakoutD&O's profit rose 58% q-o-q or 119% y-o-y to RM8.1 million while revenue was unchanged q-o-q but rose 11% y-o-y to RM113 million. Pre-tax profit rose 19.5% to RM11.8 million, lifted by a RM2.2 million government grant, a RM3.2 million net gain from the settlement of a civil suit (refer the note below) and RM0.7 million foreign exchange gain (versus RM1.6 million loss in QE31/3/2018), which partially offset by higher inventory write offs and higher R&D expenses (which doubled to RM8.9 million from RM4.4 million).
Based on bullish technical breakout, D&O could be a good trading BUY.
