D&O: Bullish Breakout

D&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.