Datapulse Technology

[shanrui_91]

CD as a distribution medium is dying. MAC and game services like Steam encourages downloads. would CD distribution eventually crash?

that's the one thing that I am worried about.Technology can be changing so fast that you will never know what will happen. it seemed like it has businesses with adobe and ibm.

[Drizzt]

it has with microsoft. last we know adobe and msft still distributes that way. but still distributing is not a strong enough moat. then again they do have a lot of cash from what i remember.

on a seperate note, a few of these companies probably used or still prints pirated cd dvd at night (learn from acquaintance)

[dzwm87]

Hmm, didn't know about that. That explains its good financial figures.

Does warrant a deeper look into it!

Some quick findings:
1. "Datapulse Technology, which produces DVDs, CDs and other digital storage media, is the sole replicator of Xbox and PC game titles for Microsoft in Asia-Pacific ex-Japan." Apart from games, I believe they are also the manufacturer for any of Microsoft OS - They may gain from Windows 8 upgrade? How much is a question as their earnings decline from FY2010 onward, which was the release of Windows 7 OS.

2. The release of Halo 3 in 2007 was a strong driver for their earnings given their sole manufacturer status. However, as Drizzt mentioned, I don't think games will be a sustainable strong factor. I believe most people resort to piracy (Bit Torrent) while Steam Account - which has the majority of the better games are shifting towards games downloading.

3. Xbox 360 is needless to say. I don't think they demand a strong line of games compared to PS3. Perhaps Xbox Kinnect? However, games console might also shift towards Blu-ray disc.

4. Yet, Datapulse share price has not witness much tanking since the 09 recovery. Perhaps, the price is supported by its sustainable dividend payment?

5. Not sure about the comparison (didn't do a detailed analysis) but I see a similarity between Neratel and Datapulse. Business prospect is not growing - maybe at a plateau status, hence just generating a consistent rate of FCF.

More a dividend yield stock IMO

*not vested*

[shanrui_91]

it is definitely going to be a dividend stock, as it has been giving near 100% of profit for the past decade. This is what that's stated in the report:

"For those shareholders who have invested in the Company since listing (1994), a total return of approximately 4.6% per annum has been generated. For those who have invested in the Company for the last five years, the total return would have been higher at 11.3% due to higher dividends declared in recent years"

[lonewolf]

I am vested with Datapulse and is happy to share some financial snapshot of this company.

All numbers in S$'000 (unless otherwise stated). Dividend yield is calculated based on the closing price at end of FY on 31 July.

[wrap]
[table=Datapulse]
Revenue
Profit Before Tax
Net Profit
Dividends Per Share (cents)
Dividend Yield
Cash Generated from Operations
Net Cash for Year
Cash at End of Year
Free Cash Flow
[/table]
[table=FY2011]
71,093
12,093
10,790
1.80
8.37%
15,471
14,627
45,299
12,655
[/table]
[table=Fy2010]
54,601
11,115
10,577
1.80
8.78%
14,151
(2,170)
30,656
11,243
[/table]
[table=FY2009]
71,579
16,813
15,290
2.50
10.87%
25,520
(6,651)
32,794
21,869
[/table]
[table=FY2008]
73,261
15,029
13,328
2.00
10.53%
22,259
(546)
39,437
19,804
[/table]
[table=FY2007]
70,072
16,463
15,008
2.00
7.14%
23,650
9,315
39,966
19,490
[/table] [/wrap]

If there are any other figures you like to see, pls let me know and I will update the table if I have those figures.

[Drizzt]

tapering off earnings and cash flow but man its nice results

[shanrui_91]

and the ROA is pretty amazing too, making me a bit tempted

(not vested yet )

[mrEngineer]

Looking forward to collecting good yield same like last year!

Vested

[lonewolf]

Its performance for the 1st 9 month isn't exactly stellar.

Doing a simple proforma projection from its 9 month performance, I have revenue and NP coming lower than 2011's 71 million revenue and 10 million NP.

The positives are that it has been generating positive FCF for at least the last 7 yrs, has net cash of ard 7.6c per share (for 2011) and has negligible debts.

I will be happy if they can maintain its 1.8c dividend that it has paid for the last 2 FYs. (Vested)

[godjira1]

Curious about datapulse's roa. Seems that they can invest their free cash into their assets and do better. but i might be missing something.