Dutech Holdings

(04-05-2016, 07:54 PM)BlueKelah Wrote: IIRC from my previous research on dutech, visiting their old website, DTMT already has operation and production factory in both germany  and china. It is unlikely that there could be much cost savings for DUTECH.. The failure of this german business in the first place is unlikely due to cost overrun as germans are pretty efficient. More likely it was due to poor sales as European economy is pretty bad overall and they may also have been outcompeted by other larger companies doing the same thing. 

A pertinent question to be asked is why they would wanna sell to DUTECH China based company?? I am sure there are plenty of such firms in Germany and Europe and if DTMT had some competitive techonology or patents and selling so cheap, pretty sure some other firm would have acquired it.

Also to note, I think just last year it was still making losses even after FORMAT supposedly was turned around.

And reading my post last year, given it is in net cash position, has the DEBT level gone up much?

This is some article I found written in Jan this year:
Dutech is an S-chip. Its 4.9x TTM P/E is at a 65% discount to its peer and downstream players averaging at 14.4x. Group CFO resigned in Dec 15, after six years’ service at Dutech, to pursue other interests and opportunities (company disclosure). In Jan 16, group CEO Dr Liu Jiayan sold 650k shares that were directly registered under his name via market transactions, with an average trading price of S$0.265. Dr Liu remains a controlling shareholder of Dutech, with a 43% stake held through his private firm.

http://singaporestockmarketnews.com/2016...ty-expert/

LOl why would Dr. Liu sell such small amount when he knows the company is doing well and giving out good dividend soon? The dividends should put enough $$ for him to use if he needed some spare cash. Especially when its just before the share price boom to 38c now? I wonder who is the fellow who benefit and the real motivation for this share sale.

Group CFO run road. Company can give any sort of reason. but its a suspicious point to consider.

And thinking about it, if their base business was really so profitable, why bother to acquire some GERMAN company?? Other than for the purpose of SEXY story telling?? And maybe allow for creative accounting to take place? I remember previously there was mention of their gaming machine business going to boom as well. Maybe they will aim to do an IPO for their subsidiary in the future, that would be a really sexy story ala sino grandness style.

looks like another speculative s-chip, good for the ride but if you dun get off in time then bye bye..

caveat emptor...


P.S CF see that you finally got convinced on the M&A story since we last discussed this stock in 2014 and vested at low prices, are you going to profit take soon or wait until it becomes like Penguin and drop back to 25cent level?


 

Share price is now demonstrating what I have been trying to say 2 years ago. And Dutech goes on to acquire more and more "loss making" companies. Debt is increasing(whilst sitting on a big load of cash), R&D expensese also increasing 66% YoY. And what looks to fast become a sunset industry.

Can Dutech turnaround and make Metric profitable? Or are all the aquisitions actually loss making?

$0.40 Privatisation offer from Dr. Johnny Liu:

https://links.sgx.com/FileOpen/Dutech%20...eID=669450

(31-05-2021, 06:30 PM)touzi Wrote: $0.40 Privatisation offer from Dr. Johnny Liu:

https://links.sgx.com/FileOpen/Dutech%20...eID=669450

The offer price is 60% above last traded price and the share price hasn't moved abit in 2021. This is probably 1 of the rare GOs where "news" wasn't leaked out.

$0.40 is equivalent to only 67% of Dutech's 31Dec20 NAV/share of RMB2.88 ($0.598). Is it good enough for the big minority shareholders, especially Robert Stone who holds 6.47% (23.06m shares)?

Finally hidden value is realized

(31-05-2021, 09:27 PM)dydx Wrote: $0.40 is equivalent to only 67% of Dutech's 31Dec20 NAV/share of RMB2.88 ($0.598). Is it good enough for the big minority shareholders, especially Robert Stone who holds 6.47% (23.06m shares)?

Its a tough call for him. On one hand, the shares are illiquid and it haven't hit 40c for quite some time. On the other hand, the offer is below NAV and cash had been accumulating in the company as years gone by. And it seems that the company is comfortable with paying shareholders 1cts dividends yearly most of the time since IPO, despite increasing cash holdings. As he holds such a big stake, it might be difficult for him to sell in the market if he wants a clean exit.

Guess the offer is a classic "not fair but reasonable", as coined often by IFAs?

(01-06-2021, 12:37 PM)ghchua Wrote:

(31-05-2021, 09:27 PM)dydx Wrote: $0.40 is equivalent to only 67% of Dutech's 31Dec20 NAV/share of RMB2.88 ($0.598). Is it good enough for the big minority shareholders, especially Robert Stone who holds 6.47% (23.06m shares)?

Its a tough call for him. On one hand, the shares are illiquid and it haven't hit 40c for quite some time. On the other hand, the offer is below NAV and cash had been accumulating in the company as years gone by. And it seems that the company is comfortable with paying shareholders 1cts dividends yearly most of the time since IPO, despite increasing cash holdings. As he holds such a big stake, it might be difficult for him to sell in the market if he wants a clean exit.

Guess the offer is a classic "not fair but reasonable", as coined often by IFAs?

Hi GH...totally agree with yr view. Both Liu bro interest together about 58%? Will Liu manage to garner 90% ...lets see how it plays out.

Droege capital holds the key too with 8.8% stake , can anyone offer insights on how it views this offer?

Enterprise value and EBITDA are $12.83m and $42.09m. At offer price of 40c, it is ONLY valued at EV/EBITDA of 1.58! Too low to give it to them. 

EV/EBITDA should be at least 3-6. So even if we use a very conservative EV/EBITDA of 2.5, the offer price should be 50c. At 50c, it will cost the offeror $73.9m which is still below the company cash & bank balances of $111.4m. With their nav at 59c and strong operating cash flow, I think we deserve better offer price.

(03-06-2021, 11:30 PM)Chiefdododetective Wrote: Enterprise value and EBITDA are $12.83m and $42.09m. At offer price of 40c, it is ONLY valued at EV/EBITDA of 1.58! Too low to give it to them. 

EV/EBITDA should be at least 3-6. So even if we use a very conservative EV/EBITDA of 2.5, the offer price should be 50c. At 50c, it will cost the offeror $73.9m which is still below the company cash & bank balances of $111.4m. With their nav at 59c and strong operating cash flow, I think we deserve better offer price.

technically u may be right..but owners' takeover are usually low ball. Moreover this stock liquidity is so low and its offer is much higher than last traded price at around 25ct region..