Duty Free International (formerly: Esmart Holding)

I notice that this stock appreciated quite a bit recently, partly due to daily share-buy-back.

I have not done my research on this stock yet, will put it into my watch-list.

Basic info of this stock from POEMS platform

Gross margin : 34%
NPM : 13%
ROE : 25%, ROA : 15%
Div yield : 6.57%
PE (TTM) = 14.58
PB = 3.1

Anyone have view on this stock?

The stock has been appreciating due daily share purchase.

This is a good/bad thing.
Good if you are holding it already hence u can see the major shareholder bring the value up.
Bad , if you get stuck with it and the major shareholder does nothing for a LONG while... Stock can go into free fall mode when retail investors are only involved in thinly traded shares.

In terms of investing, it is a stock in retail play in Malaysia. Confidence in Asia and over the Xmas etc, i believe this qtr earnings should be strong.

looks like a decent stock but PE a bit high

I looked into the detail, especially in the last 2Q reports in FY2013. Here is my view

- Two quarterly dividend paid in Q1 and Q2 FY2013, with both payout ratio are >100%. Are shareholders excited? likely yes, but sustainable? probably not IMO
- Take a look at the Q2 report which is the latest one. 1H's revenue almost the same (+3.6%), net profit increases by almost 20%. If look into detail, it is due to one-time disposal of asset. If excludes the one-time gain, the net profit is similar with last year result
- Take a look into the balance sheet. Main business is retail. Inventory is quite large, with substantial goodwill. Borrowing is about 0.3-0.4 of equity. Receivable on uptrend. There are quite substantial accumulated losses, which mean the business is not good previously.

Well, this stock does not seem interesting. It seems the management is working hard to "pump" up the share price by paying good dividends and doing share-buy-back.

Did I miss out anything?

some pt that i am thinking abt

1. what do you think of the major asset sale and

2. if company holds so much cash post sale, and the market cap is low, would it be reasonable that the mgt should have done some to reflect their "new" cash position before the sale?

(09-01-2013, 04:48 PM)CityFarmer Wrote: I looked into the detail, especially in the last 2Q reports in FY2013. Here is my view

- Two quarterly dividend paid in Q1 and Q2 FY2013, with both payout ratio are >100%. Are shareholders excited? likely yes, but sustainable? probably not IMO
- Take a look at the Q2 report which is the latest one. 1H's revenue almost the same (+3.6%), net profit increases by almost 20%. If look into detail, it is due to one-time disposal of asset. If excludes the one-time gain, the net profit is similar with last year result
- Take a look into the balance sheet. Main business is retail. Inventory is quite large, with substantial goodwill. Borrowing is about 0.3-0.4 of equity. Receivable on uptrend. There are quite substantial accumulated losses, which mean the business is not good previously.

Well, this stock does not seem interesting. It seems the management is working hard to "pump" up the share price by paying good dividends and doing share-buy-back.

Did I miss out anything?

http://www.trbusiness.com/index.php/regi...klia2.html

http://www.moodiereport.com/document.php?doc_id=39474

MALAYSIA. Local travel retailer DFZ has secured the concession for two beauty outlets at Kuala Lumpur International Airport’s new terminal klia2.

As reported, the outlets were retendered after the airport failed to conclude an award with initial victor The Shilla Duty Free.

Shilla was understood to have had concerns over the non-exclusive nature of the concessions, with Eraman and Heinemann Asia Pacific also selling beauty products; airport company Malaysia Airports maintained that the non-exclusivity had been explicit from the start.

DFZ will operate airside stores of 131sq m and 103sq m at the Satellite International Departure, Level 2 (the pink outlets in the floorplan below). The company earlier secured a 148sq m landside concession at gateway@klia2, an integrated transport and retail complex between the drop-off area and the main terminal.

The outlets will open in July. They will offer “major brand names and a wide product range to cater to diverse customer groups”, DFZ said.

DFZ owns the Zon Duty Free and operates more than 40 stores in Malaysia. Its major airport businesses are the Arrivals liquor and cigarettes concession at KLIA’s main terminal (featuring a luxury Arrivals boutique with expansive presentations for major liquor brands) and the confectionery and beauty concessions at Penang International Airport.

The company has recently added to its KLIA business with a standalone boutique for luggage brand Samsonite.



How come share price does not react to this news? Quite good news right? Is this a typical case of delayed reaction whereby investors would only take note after a certain time period or when the shops are operational in July which is now?

vested. waiting for 1Q/15 results to be announced soon, and I think there should be dividend and maybe special dividend as it receives final instalment of the 80+million ringgit from Berjaya.

http://dfi.listedcompany.com/newsroom/20...8320.1.pdf

In 2011, in their press report, they stated this:

Quote:
DFI also intends to apply for a transfer of its listing status from the Catalist Board to the Main Board of the SGX-ST in the future, to further enhance its presence and potential.

This year is the 3rd year after their listing through RTO, and so upgrading to mainboard is eminent as there is a condition of listing in catalist for at least 2 years to upgrade.

Expect some action soon.



From SGX:
Transfers from Catalist to SGX Main Board
408
A Catalist issuer may apply to the Exchange in writing for transfer to SGX Main Board. The Exchange may allow the transfer if the issuer meets the following requirements:

(1) It has been listed on Catalist for at least two years;

(2) It meets:
(a) the following minimum quantitative requirements:
(i) Main Board Listing Rules 210(2)(a) and 210(3); or

(ii) Main Board Listing Rules 210(2)(b) and 210(3); or

(iii) Main Board Listing Rules 210(2)© and 210(4)(a)

When determining whether the issuer complies with the market capitalisation requirement in Main Board Listing Rule 210(2)(b) or Main Board Listing Rule 210(2)©, the Exchange will take into account the issuer's average daily market capitalisation for one month preceding the application date.

(b) any other listing requirements that the Exchange may prescribe (either generally or in any particular case).

(3) It provides the Exchange with an undertaking to comply with all the Exchange's requirements and policies applicable to issuers listed on the SGX Main Board. The undertaking must be in the form set out in Main Board Listing Rules Appendix 2.3.1.

(4) An offer information statement required by the SFA (meeting the requirements in the Sixteenth Schedule) must be lodged with the Authority if the issuer intends to offer additional securities on SGX Main Board, or a draft shareholder's circular to approve the transfer must be submitted to the Exchange where there is no additional offer of securities.

(5) Its shareholders have approved the transfer by special resolution.

(6) It is in compliance with all applicable Catalist Rules.

(7) For the purpose of the transfer, an listing applicant may be required to increase the proportion of its issued and paid-up capital held in public hands to meet the minimum shareholding spread requirements applicable to SGX Main Board listing applicants set out in Main Board Listing Rule 210(1).

All I know about this company is that they sold their JB property assets near Woodlands checkpoint to related parties. That's a few years back. Just when Iskandar is getting hot.


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(05-07-2014, 05:26 PM)opmi Wrote: All I know about this company is that they sold their JB property assets near Woodlands checkpoint to related parties. That's a few years back. Just when Iskandar is getting hot.


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yap . to Berjaya corp and Berjaya corp having 26% stake in Atlan, parent of duty free international.

I predict some action will be soon. maybe an upgrading to mainboard which is usually a good news. My TP is 40+ cents. 52 weeks low 28 cents, and high 40.5 cents.

Of course this is not a speculative stock so in the mean time enjoy the dividends.

(05-07-2014, 05:33 PM)Sincerity Wrote:

(05-07-2014, 05:26 PM)opmi Wrote: All I know about this company is that they sold their JB property assets near Woodlands checkpoint to related parties. That's a few years back. Just when Iskandar is getting hot.

yap . to Berjaya corp and Berjaya corp having 26% stake in Atlan, parent of duty free international.

This transaction is fishy:

1. It's revealed that DFI made a pre-payment rental of RM86.2m for the property they sold for RM325. That's 26.5% of the purchase price, and doesn't look like ordinary commercial term to me.

2. There's a receivable of RM80m (chargeable at 6% interest) relating to this sale. Coupled with the rental pre-payment, shareholders essentially finance 51% of Berjaya's purchase price, of which 26.5% is interest-free.

3. According to the S&P agreement, the RM80m receivable is supposed to be paid up by 15 Mar 2014. To date, Berjaya has only paid RM30m (+ interest). DFI extended the payment due date for the remaining RM50m to 15 Jul 2014.