Good morning.
Today, we feature a note on D’Nonce Technology Berhad in our FundTech Radar – 7th August 2018. It is principally engaged in manufacturing, sales and distribution of advanced packaging materials, electronics products, chemicals, food related products, spare parts and consumables and contract manufacturer of electronic components. As at FY17, DNONCE’s sales were made up of 44% sales from Thailand vs. 56% local sales.
Fundamental Stance
· D’Nonce has been in the red for 3 out of the last 5 years.
· DNONCE’s core PATAMI surged 98.5% q-o-q due to better margin and cost control, during 3QFY18.
· Its net gearing ratio rose marginally to 0.68x as at 31 May 18 (vs. 0.66x at 28 Feb 18)
· Teh Huan Seng has emerged as a substantial shareholder via his vehicle, BM Synergy Holdings Sdn Bhd, according to filing with Bursa on 24th Jan 18.
· New CEO (Kuah Choon Ching) come 1st Sept has proposed to diversify its principal business to include property development and construction.
· In a filing with Bursa Malaysia, DNONCE had entered into an agreement for the exclusive rights to develop a 6,774 sq m piece of land in Seberang Perai Tengah, Penang for RM10m.
· D’Nonce anticipates the new business activities in property development and construction will contribute 25% or more to the group’s net profit going forward.
Technical Front
Pending triangle formation breakout.
Resistances: 0.35/0.46/0.55
Supports: 0.29/0.27/0.25
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
7th Aug 2018
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