Design Studio Group Ltd.(formerly: Design Studio Furniture Manufacturer Ltd)

[dahuai84]

4th Quarter and Full Year Financial Statement and Dividend Announcement for the Period/Year Ended 31 December 2013

http://designstudio.listedcompany.com/ne.../id/394595

Just declared 6 cents dividends last week which represents 12% div yield at last traded price of 50 cents. Unbelievable current results (Net Profit +159.9% yoy) far exceeded most expectations, I wonder why nobody bothered about this counter. Too illiquid?

[AlphaQuant]

Unbelievable current results (Net Profit +159.9% yoy) far exceeded most expectations

the 160% jump in NP is for the 4th Q on a yoy basis - however since this is a project based firm, better comparables should be made on a FY yoy basis, for which the results are flat.(up 5%) In fact if i look at the eps for the past 5 years, the eps has halved from 10c in 2009 to 4+c in 2013. At a current price of 50c, this works to be a PE of ard 11 agst a trailing 5y of 7-8.

I'm puzzled at the dividend as well but the firm does have decent FCF and a cash pile so the move is good for its ROE. However, given the slide in EPS thru the years and the fact that a core segment deals with panelling in residentials which seems to be cooling, is there sufficient MOS @ 50c?

[dahuai84]

Estimated EPS going forward likely to be around 4.0 - 5.0 cents range, EPS have dropped drastically(approx. 40%-50%) as compared to 5 years ago before the buy-over by Depa @ 65 cents. Paying 50 cent with a dividend payout soon, effective puts the purchase price to 44 cents. In this current environment with a ROE of >10%, PE around 11 and a conservative company with no debt, I don't see why not.

[greengiraffe]

http://www.businesstimes.com.sg/premium/...s-20140808

PUBLISHED AUGUST 08, 2014
Design Studio Q2 profit soars on stronger margins
BYJAMIE LEE
leejamie@sph.com.sg @JamieLeeBT

DESIGN Studio Group, a furniture maker, yesterday posted a 50 per cent boost in net profit for the second quarter, thanks to stronger profit margins that came amid lower sales. But it expects the operating environment to remain challenging in the second half of the year. "This is in view of property cooling measures implemented by regulators in the markets in which the group operates, namely, Singapore, Malaysia and China; the tightening of supply of foreign labour in Singapore and the associated increased costs," the company said in a regulatory filing.
Net profit for the three months ended June 30 stood at S$3.98 million, up from S$2.64 million. This translated to earnings of 1.53 Singapore cents per share, up from 1.02 Singapore cents per share.
Revenue for the period fell 26.6 per cent to S$32.6 million, mainly due to fewer hospitality and commercial projects and distribution projects completed during the period. This was partly offset by the higher revenue contribution from the residential property projects.
But the company posted a bigger drop in cost of sales, which was down 35.2 per cent to S$24.4 million. The company recorded higher margins due to improved cost efficiencies achieved by the group's production facility in China. The company declared an interim dividend of 0.5 Singapore cent per share.

[valuebuddies]

http://infopub.sgx.com/FileOpen/DesignSt...eID=324523

Fantastic set of result! PAT up by more than 100%. I was too late to get in on time...

[Life is a game]

Steady. One of my crown jewel for dividend play only. A classic example of why a company that gives dividend and not retain earning for growth will not see share price improvement. Given its dividend payout ratio from earnings. The current share price is just fair. No more no less. Market efficiency in work.

[Life is a game]

Congrats to all valuebuddies vested in DS. Another perfect year of dividends yeah!

[Baldric]

Any thoughts on this stock anyone?
The revenue is flat. Net profit doubled and operation cash flow at 20million.

Giving out 16million dividend, current cash in company 48 million.

[yewkim]

I notice this one too. But the liquidity is very poor because the public is holding 10% of the share.

But i think major shr holder may take it private easily if they really wanted to.

[opmi]

^ Arab took it private once already.

Company is order book driven. Dividend will slow
when the condos completion slows.