DatacrftUS$   

Beneficiary of weak US$

Hi Z' Liang,  Sorry to bother you. My question is how a weak USD could benefit D'craft when the Coy is trading in USD. In fact, it should be translated  into  less Sing$ and thus, a loss-in-exchange. Tnx in advance and rgds. 

 

Datacraft, Southeast Asia's largest computer data network builder, confirmed its forecast of slowing sales growth in the second half of its fiscal year but said profitability was rising.



Philip Chu, Datacraft's CFO said: "but we are still extremely profitable and rich in cash. The company is in its best shape in maybe five years."



It is scheduled to release results for its third quarter to the end of June on Aug. 2.

 

U r welcome, singaporegal. Here's a good post rating for you :)

 

RMB to appreciate 8% per year for next 10 years ???

 

thanks zhuge_liang for this analysis.

from TA point of view, watch out for this stock. there will be some sudden price change in the next few days.

 

The operating environment remains positive. Datacraft is among the few tech stocks in S'pore that benefits from a weaker US$/stronger Asian FX. It's a play on the growing enterprise/teco IT spending in Asia, improving margins and strong balance sheet with solid FCF.

Its China/Japan operations is now profitable on a stand-alone basis. It also has a net cash of US$127 m (29% of market cap; hiher interest income from rising rates). DSOs at 69 days with mget targeting 65 days.

Its headline P/E may not appear cheap, but is at the lower end of its 8-year range. It enjoys strong above-average growth, improving margin/RoE trend, 3.2% yield amd share buyback.

Citigroup has a price target of US$1.45.