Dutech Holdings

[changwk]

Hi,

Robert Stone who is a major shareholder. He currently holds 5.99% of Dutech shares.

On 5th May, Robert increased his stake by making a market purchase of 180,000 shares at $0.29. After the purchase, Robert now holds approx 6% of Dutech.

It appears that Robert Stone is confident of the potential of Dutech business performing better.

[dydx]

Q1-FY15 result just out....
http://infopub.sgx.com/FileOpen/Dutech_1...eID=350016
B/S remains rock-solid. Key management priorities include (1) growing the self-service machine and gaming terminal businesses, and (2) restructuring and turnaround of newly acquired subsidiary DTMT.

A higher interim dividend of $0.015/share (vs. $0.01/share in FY14) declared.

[brattzz]

good call sir!
Robert Stone got in early!

[Bluechipfan]

Well done! Pleasant surprise though for the higher dividend.

[CityFarmer]

The company started a subsidiary in Philippines. The AP sales is limited, with less than 10% of sales. With major production activities based in China now, I don't see why AP region can't be a key contributor to the company revenue.

http://infopub.sgx.com/FileOpen/Ann_Phil...eID=355636

[dydx]

2Q-FY15 result just out....
http://infopub.sgx.com/FileOpen/Dutech_2...eID=363411

Another quarter of steady improvements.

[GFG]

2Q-FY15 result just out....
http://infopub.sgx.com/FileOpen/Dutech_2...eID=363411

Another quarter of steady improvements.

yes...
looks like the integration of DTMT is proceeding smoothly
Gross Margins of DTMT are still way below that of the high security segments, I'm watching for this to improve as DTMT is integrated and cost savings are realised.

<Vested>

[GFG]

ACQUISITION OF KRAUTH TECHNOLOGY GMBH BY DUTECH HOLDINGS LIMITED

DUTECH HOLDINGS LIMITED

(Incorporated in the Republic of Singapore)

Registration No. 200616359C

ACQUISITION OF KRAUTH TECHNOLOGY GMBH BY DUTECH HOLDINGS LIMITED

The Board of Directors (“Board”) of Dutech Holdings Limited (the “Company”) wishes to announce

that it has on 22 December afternoon, 2015(Germany time) entered into an agreement (“Agreement”)

with Nussbaum Technologie-Holding GmbH & Co. KG (“Nussbaum Technologie”), a company

incorporated in Germany, to acquire 100% shareholding interest in Krauth Technology GmbH

(“Krauth”), a company incorporated in Germany (“Proposed Acquisition”).

Pursuant to the Agreement, the Company will purchase issued shares constituting 100% of issued

share capital of Krauth from Nussbaum Technologie for Euro Two Hundred Thousand Dollar

(€200,000.00). The Company will also purchase product Know-how for Euro Two Hundred and Fifty

Thousand Dollars (€250,000.00) from Nussbaum Technologie. In the meantime, the Company will

provide shareholder’s loan of Euro 2.02 million Dollars to Krauth. The Proposed Acquisition was

arrived on a willing-buyer, wiling-seller basis.

The Board took into account the following factors in determining the Consideration: the rationale for

the Proposed Acquisition elaborated below and the financial performance and position of Krauth.

The Board decided to undertake the Proposed Acquisition, taking into consideration of Krauth’s

experienced software design capabilities, its product offerings with high market potential, and the

synergy in R&D, design and manufacturing of intelligent terminals with the Company.

Krauth, established in 1926, is a developer and producer of solution products such as Auto-Ticketing

Machines and Money Changers. It has plants in Eberbach/Baden, near Heidelberg, Germany with

110 employees.

The net tangible asset of Krauth was €220,000 as at 31 August, 2015.

The Company expects to complete the Proposed Acquisition by 1 January, 2016. On completion,

Krauth will become a subsidiary of the Company.

None of the Directors and substantial shareholders has any interest, direct or indirect in the Proposed

Acquisition.

By order of the Board

Dr. Johnny Liu Jiayan

Chairman and CEO

23 December, 2015

[CityFarmer]

Dutech has done M&A successfully for growth since 2011. It has taped on the opportunities in Europe, to buy cheap, restructure the model, and turn-around the companies. It has done so with FORMAT in 2011, and later with DM in 2014, both were in red pre-acquisition. The company has bought them, with minimum cash up-front, and large bargain purchase (negative goodwill).

The strategy is to shift labor intensive factory operation to China, and continue selling in Europe. It will reduce the cost of goods sold, a marginally higher cost in sales and distribution, and admin cost for offices in Europe. The strategy worked for FORMAT acquisition, which turned around to profit in 2 years. The acquisition of DTMT in 2014, is following the same strategy, and should work in due course, with improving operation. The company is also acquiring a small company in Europe, the Nussbaum Technologie in end 2015.

The FY2015 revenue has grown more than two-fold, from FY2010, the financial year before the FORMAT acquisition. Operation profit (exclude other income, and other expense) has grown more than 80% over the same period, while DM integration is still on-going.

The P/E is about 5, P/B is slightly less than 1, with ROA/ROE of 12%/17%, based on shareinvestor.com. A net cash position. Dividend yield is about 4% at current price of 37.5 cents per share.

The company has taken a position well, and has taken advantages on current storm, especially in Europe.

What do you think of the company?

(vested @ a much lower prices)

[Greenrookie]

I am very much interested in why Dutech succeed in turning around its acquisitions while techcomp failed. Both bought Euro companies at the cheap and hope to turn it round with cheap cost. 

Perhaps Dutech has. Stronger in house brand to "guarantee" demand and made "amends" with euro labour

CF, u know the reasons ?