Fund Manager Summary
The fund managers believe that the outlook for DUG Technology Ltd presents a significant opportunity, particularly as a leader in high-performance computing (HPC) in Australia. They note that compute power is increasingly in demand globally, with expectations for extreme growth in the sector over the next decade. In their opinion, unlike other asset managers, DUG's innovative software solutions enhance its value, providing advanced applications for industries such as oil and gas, medical research, and satellite data collection. However, they express concern that the market currently undervalues DUG, perceiving it merely as an oil and gas service provider. The fund managers highlight that the impending Square Kilometre Array Telescope project in Western Australia alone will require over three times DUG's existing HPC capacity, indicating immense potential for growth.
Source: Trading View
Commentary From The Managers
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Perennial Partners
30 Sept 2025
$2.73
Summary
- DUG Technology has seen a significant increase of 68.5% in value.
- They have signed a multi-year deal with Petronas for their advanced elastic multi-parameter full waveform inversion (MPFWI) imaging software.
- The agreement includes supporting data centre and scientific capacity.
- The deal was upgraded later in the month as the scope was finalised.
- Perennial Partners continues to hold because they anticipate other major companies will follow Petronas's example.
- Many companies are currently completing or conducting pilot projects using the MPFWI software.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Perennial Partners
30 Sept 2025
$2.73
- DUG Technology has seen a significant increase of 68.5% in value.
- They have signed a multi-year deal with Petronas for their advanced elastic multi-parameter full waveform inversion (MPFWI) imaging software.
- The agreement includes supporting data centre and scientific capacity.
- The deal was upgraded later in the month as the scope was finalised.
- Perennial Partners continues to hold because they anticipate other major companies will follow Petronas's example.
- Many companies are currently completing or conducting pilot projects using the MPFWI software.
Summary
1851 Capital
15 Sept 2025
$2.18
- 1851 Capital continues to hold a position in DUG Technologies, a small technology company.
- The company has been listed for around five years and has shown moderate performance since then.
- A significant development for DUG Technologies is their product, Elastic MP-FWI, which enhances seismic data interpretation for oil and gas companies.
- This technology is crucial as it helps companies make informed drilling decisions, potentially saving them hundreds of millions annually.
- Elastic MP-FWI now constitutes over half of the company’s order book, reflecting its growing importance.
- In the past eight months, DUG Technologies has increased its order book by more than $70 million.
- The company trades at an attractive PE ratio of 30, considering its strong growth outlook.
- Earnings are projected to grow at double-digit rates, indicating a promising future for the company.
- DUG Technologies is considered off the radar by many investors, despite its strong prospects and growth potential.
Summary
Ausbil Investment Management
31 Dec 2024
$1.40
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Summary
Ausbil Investment Management
31 Oct 2024
$1.86
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Summary
Cerutty Macro Fund
31 Aug 2023
$1.80
- DUG Technology is viewed by Cerutty Macro Fund as Australia's premier high-performance computing (HPC) player.
- The company has assets in Western Australia, Houston, London, and Kuala Lumpur.
- Compute power is seen as a highly desired resource globally, with expectations for extreme sector growth over the next decade.
- DUG differentiates itself by providing sophisticated software overlays for various industries.
- The fund believes that DUG is currently undervalued, attributed merely as an oil and gas service provider.
- Significant opportunities exist, notably with the Square Kilometre Array Telescope requiring more than 3x DUG’s current HPC capacity.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"Compute power seems to be the next gold rush, and while DUG Technology appears undervalued as merely an oil and gas player, its potential in high-performance computing could redefine growth narratives in the sector. The future looks promising, especially with projects like the Square Kilometre Array on the horizon."
Last Updated: 30 Sept 2025
Query The Data
Frequently Asked Questions
Who is investing in DUG Technology Ltd (ASX:DUG)?
Fund managers including Cerutty Macro Fund, Ausbil, 1851 Capital and Perennial Partners have invested in DUG Technology Ltd (ASX:DUG).
Why do fund managers invest in DUG Technology Ltd?
Fund managers are investing in DUG Technology Ltd due to its position as a leading player in high-performance computing (HPC) in Australia, with significant assets across multiple global locations. They recognize the increasing global demand for computing power and anticipate substantial sector growth in the coming decade. DUG's unique offerings, including advanced software for seismic imaging, genomic data analysis, and satellite data collection, differentiate it from typical oil and gas service providers. Additionally, the potential for growth is highlighted by projects like the Square Kilometre Array Telescope, which could significantly exceed DUG's current HPC capacity.
What happened to DUG Technology Ltd (ASX:DUG)?
Fund managers are investing in DUG Technology Ltd due to its innovative Elastic MP-FWI technology, which significantly enhances seismic data interpretation for oil and gas companies. This capability allows clients to make informed drilling decisions, potentially saving substantial costs. The company has seen a notable increase in its order book, growing by over $70 million, and recently secured a multi-year contract with Petronas, indicating strong market demand. With earnings projected to grow at double-digit rates and an attractive PE ratio of 30, DUG Technology presents a compelling investment opportunity.