Dutech Holdings

[mulyc]

 For additional comfort Robert Alexander Stone (A pretty well known individual investor on the SGX) holds a 6.49% stake in Dutech

He is on china Sunshine's top 20 shareholders too owning 11m shares in its AR 2016

I think it is not wise to invest base on another SSH. Robert Stone has his fair share of s-chip duds. go google and you will learn more of his s-chip mistakes.
You need to think independently. 

For Dutech one way to get rid of the s-chip stigma is show me the money n it can come in the form of higher divi. Dutech div is low n there lies the problem.

I cannot agree the 2nd part above. There are many ways of "show me the money", and giving out dividend is only one of them. One of the other ways is expanding their core business without asking money from their share holder or borrowing. Dutech acquired so many good quality Euro companies using their own FCF, there lies no problem for me as I am looking at a growth company, not a dividend company.

In this respect Dutech have got credit lines as well as a mandate from shareholders to issue new shares (god forbid!) which they have not activated/utilized in the last few years. I am assuming this is a good sign.

Prior to the vote on the resolution to issue new shares during yesterday's meeting, a shareholder asked Dr Liu to go on record to say this would not be utilized in the foreseeable future. He said he indeed did not foresee this happening unless there was a nuclear war in the Koreas.

[TTTI]

 For additional comfort Robert Alexander Stone (A pretty well known individual investor on the SGX) holds a 6.49% stake in Dutech

He is on china Sunshine's top 20 shareholders too owning 11m shares in its AR 2016

I think it is not wise to invest base on another SSH. Robert Stone has his fair share of s-chip duds. go google and you will learn more of his s-chip mistakes.
You need to think independently. 

For Dutech one way to get rid of the s-chip stigma is show me the money n it can come in the form of higher divi. Dutech div is low n there lies the problem.

I cannot agree the 2nd part above. There are many ways of "show me the money", and giving out dividend is only one of them. One of the other ways is expanding their core business without asking money from their share holder or borrowing. Dutech acquired so many good quality Euro companies using their own FCF, there lies no problem for me as I am looking at a growth company, not a dividend company.

Having been a shareholder of Dutech since 2015, I currently own 630,000 shares at an ave. cost of $0.275.

For sure, S-chips have a bad name, and I've been burnt by an S-chip before too.
But if you look at Dutech's operations, there's no doubt it's a global company. It doesn't look anything like an S-chip

Also, as lanina1 pointed out, the past acquisitions (they've been acquiring almost 1 every year!) have mostly been done with cash (Except for Format)
This is not what iffy S-chips do.
I mean, the sellers of the acquired companies have to be paid with cash, and if they're not doing bonus or rights issues etc to get the cash from shareholders, or taking on debt to do so, it means the cash used to pay is REAL. They're generated internally by the business' FCF.
And if one is really that worried, you can always just drive out to their plant to visit.
Their plant in Pudong is a 3hr drive away from Shanghai.
Tainting them as S-chips is just a very superficial way of thinking.

Also, I'd agree with the comment above about NOT looking at Robert Stone as comfort.
Everyone makes mistakes, the last thing you want to do is to base your decision on someone else's potential mistake.
On top of that, I'd note that he has been a long time shareholder. For 4 years till 2013 when he was a shareholder, the share price stayed flat, and in fact, continued dropping somewhat. So if you'd blindly followed at the start of that 4 years (assuming you had the information that he took up a position), you'd have had a torrid 4 years.

[cyclone]

Profit Guidance for the Group's Unaudited Financial Results for the Second Quater ended 30 June 2017

Dutech Holdings Limited announced that The Group is expected to report a significant decline in profit for 2Q2017. 
Based on a preliminary review of the unaudited financial results of the Group for 2Q2017, this is mainly attributable to :
1. loss position of Almex GmbH (the newly acquired German subsidiary),
2. the lower revenue in ATM safes due to the prevailing of e-payment and,
3. the price rise of raw materials such as steel and Argon wielding gas.

Further details of the Group’s performance will be disclosed in the Company’s announcement of the Group’s unaudited financial results for 2Q2017.

[mulyc]

Profit Guidance for the Group's Unaudited Financial Results for the Second Quater ended 30 June 2017

Dutech Holdings Limited announced that The Group is expected to report a significant decline in profit for 2Q2017. 
Based on a preliminary review of the unaudited financial results of the Group for 2Q2017, this is mainly attributable to :
1. loss position of Almex GmbH (the newly acquired German subsidiary),
2. the lower revenue in ATM safes due to the prevailing of e-payment and,
3. the price rise of raw materials such as steel and Argon wielding gas.

Further details of the Group’s performance will be disclosed in the Company’s announcement of the Group’s unaudited financial results for 2Q2017.

No wonder the price tumbled so much today

[piaopiao]

Dutech mentioned in its latest announcement that its profit is significantly lowered due to:

1) loss position of Almex GmbH (the newly acquired German subsidiary)
2) lower revenue in ATM safes due to the prevailing of e-payment
3) rising prices of raw materials such as steel and Argon wielding gas

CIMB's analysts Roy Chen and William Tng have been covering Dutech. Their reports are consolidated at https://sginvestors.io/sgx/stock/cz4-dut...yst-report

The lastest 3 reports target price and advice are:

1) 3Q FY2016 report
   
Target price 65 cents ADD

2) FY2016 report

Target price 55 cents HOLD

3) 1Q FY2017 report

Target price 53 cents HOLD

In their upbeat reports, they did not highlight the risk of rising e-payment popularity versus holding cash (the need for more ATMs).

Will they advise to SELL in their 2Q FY2017 report? Maybe there will NOT be a 2Q FY2017 report from them.

[Millionfaith]

The sell down on Friday seemed to be over reacted. The profit guidance statement said significant decline in profit, not significant in losses...Of course, don't take my word for it.

I do not expect Metric to be able to turnaround so soon. Format took about 4 years to turnaround.

I will wait for Dutech result for further clarification.

[holymage]

If one has been to China, he would have observed the overwhelming usage of mobile payments dominated by Alipay and WeChat Pay in commerce. Even beggars accept mobile payments through QR code! Just google and you will read an abundance of articles on China's cashless society.

In fact, adoption of mobile payment in China is so successful that many non-Chinese companies are trying to copy them. Just to name a few, Apple Pay, Samsung Pay, GrabPay, Garena's AirPay. Even living in Singapore, one would have noticed that lots of companies are offering incentives to hook and accustomize users onto e-payments. So e-payment is definitely a real threat to ATM sales.

While China is practically a cashless society, I am doubtful that US and Europe will adopt as rapidly. More likely to be a gradual slow death akin Union Gas's bottled LPG cylinder business. In addition, Dutech is making inroads into Intelligent Terminals through acquisitions, to diversify from its High Security segment.

These being said, Dutech's valuation is indeed attractive.. Although it has always been a notch lower than others, probably due to the S-Chip stigma or perhaps the market writing off its High Security segment. This has definitely gotten my interest to start researching on Dutech.

[brattzz]

"Even beggars accept mobile payments through QR code!" haha!

tat would be quite a feat ain't it?!!

[edragon]

Dutech mentioned in its latest announcement that its profit is significantly lowered due to:

1) loss position of Almex GmbH (the newly acquired German subsidiary)
2) lower revenue in ATM safes due to the prevailing of e-payment
3) rising prices of raw materials such as steel and Argon wielding gas

1) Germans are smarter?
2) "Your (Dutech) loss is my gain" - Banks
3) 'Caught between a rock and a hard place'

[holymage]

Brattzz, I was in amaze when I first heard of it. But keep an open mind as anything is possible. Even beggars need to keep up with technology, in order to have a competitive advantage? Haha. A more realistic way of thinking - If most Chinese do not carry cash, how would the beggars survive without keeping up with the trend.
Take a look at the videos in the weibo link below. PS: The first video is hilarious.

http://www.weibo.com/p/10080887fa5976ff5...d980e8aa91
https://www.newsflare.com/video/113987/o...ode-to-beg
http://www.ibtimes.co.uk/beggars-china-n...es-1618396

This just shows how pervasive e-payment is in China. There are tons of articles on e-payments in China. Just google or ask your Chinese friends and you understand.