(05-11-2014, 05:14 PM)rickytj Wrote: [ -> ]This company looks decent. With high yields (seem to be sustainable) and healthy balance sheet (7% net debt while global players like Dufry and World Duty Free have 89% and 217% net debt). Malaysia is one of the most visited countries in Asia and they have a dominant position in the country. Southeast Asia is promoting their tourism aggressively and the Chinese don't seem to stop travelling.. this can be a huge growth opportunity if they can partner with other global players to expand regionally (their 30 years of experience should help).
corporate governance (which so far I havent found anything wrong) and liquidity aside, this doesnt look like a bad company.
Just touched 30 cents again yesterday, hope this is the breakout
(12-11-2014, 06:19 AM)Sincerity Wrote: [ -> ] (05-11-2014, 05:14 PM)rickytj Wrote: [ -> ]This company looks decent. With high yields (seem to be sustainable) and healthy balance sheet (7% net debt while global players like Dufry and World Duty Free have 89% and 217% net debt). Malaysia is one of the most visited countries in Asia and they have a dominant position in the country. Southeast Asia is promoting their tourism aggressively and the Chinese don't seem to stop travelling.. this can be a huge growth opportunity if they can partner with other global players to expand regionally (their 30 years of experience should help).
corporate governance (which so far I havent found anything wrong) and liquidity aside, this doesnt look like a bad company.
Just touched 30 cents again yesterday, hope this is the breakout
something brewing I think
30.5 cents reached.. breakout?
Dual-list proposal, after a good 1Q result...
(not vested)
Duty Free mulls dual listing in Hong Kong
SINGAPORE (July 15): Singapore-listed Duty Free International ( Financial Dashboard) is contemplating seeking a dual primary listing on the main board of the Hong Kong Stock Exchange (SEHK).
It is currently listed on the Catalist board of the Singapore Exchange.
The distributor of duty free goods and non-dutiable merchandise believes it is “desirable” and beneficial” to have dual primary listing status here and in Hong Kong, it said in a filing.
Duty Free said the dual listing will widen its investor base, hence, gaining exposure to a wider range of private and institutional investors.
It is also expected to increase trading liquidity of the ordinary issued shares in the capital of the company, Duty Free added.
Thus far, the company has not submitted any application to the SEHK for the dual listing, but it has commenced “preparatory work” for the exercise.
“Whilst the proposed Hong Kong dual listing promises to be an exciting new milestone for the company, shareholders should note that there is no certainty nor assurance that it will materialise,” the statement read.
Duty Free ended up 0.5 cent or 1.8% to 29 cents, giving it a market capitalisation of about $319 million.
http://www.theedgemarkets.com/sg/article...-hong-kong
The company current free-float is around 17.5%. A dilution is expected, after the dual-listing...
(not vested)
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The Board wishes to inform that, subsequent to the Announcement, the Company has been
notified by its controlling shareholder, Atlan Holdings Bhd, that it does not intend to sell any of
its existing shares in the Company in order for the Company to fulfil the 25% public float
requirement pursuant to the Main Board Listing Rules of the SEHK.
As such, for purposes of the Proposed HK Dual Listing, the Company will fulfil the 25% public
float requirement by placing out new shares in the capital of the Company in due course.
http://infopub.sgx.com/FileOpen/DFI%20-%...eID=360542
Transfer of Listing from Catalist to The Mainboard of Singapore Exchange Securities Trading Limited
Trading of the Company's shares on the Mainboard of the SGX-ST will commence at 9.00 a.m. on 5 October 2016.
took a quick look at this bombed out counter near all time lows:
pros:
1. net cash about 43% of equity, though mostly from previous share placements
2. captive biz. long history of profitability
3. strong cashflows and hardly any major capex
4. improved inventory management after tie up with Heinemann
cons:
1. unexplained shortage of key products causing revenue and profit plunge to new lows in recent years
2. law suit over alleged non payment of tax - penalty about 1+ cents of EPS
3. p/b at around 1.33. is this high for such a biz?
4. loan to related co on books for many years, though being paid 9% on it.
5. worsening USD MYR fx
anyone else care to share?
The Proposed Capital Reduction and Cash Distribution
Duty Free International Limited announced that the Company intends to undertake a capital reduction exercise pursuant to Sections 78A and 78C of the Companies Act, Chapter 50 of Singapore to return to the shareholders of the Company surplus capital in excess of the Company’s immediate needs by way of a cash distribution of S$0.035 for each ordinary share in the share capital of the Company held by Shareholders.
As at the date of this announcement, the Company has an issued and paid-up share capital of approximately S$410,216,198.44. Upon completion of the Capital Reduction, the Company will have an issued and paid-up share capital of S$368,279,230.18.
More details in
https://links.sgx.com/FileOpen/DFI_Propo...eID=587684
Duty Free International today closed at 0.145.
My two cents worth:
1. Buyout
- As highlighted above, the company is tightly held
- The share price has dropped from about 40 cents to about 15 cents over the past 3 years
- Is a buyout a possibility?
2. Long Term Sustainability
- What would be the long term sustainability of duty free shops?
- After 38 years of selling liquor and tobacco at Changi Airport, the DFS Group will soon be pulling out (
https://www.straitstimes.com/singapore/d...-next-june)
- The NTU professor in the above article suggested that online retail has eroded the advantage of duty free shops
3. Consumer Sentiment
- In the SGX announcements, worsening consumer sentiment is often cited by the management as the cause for declining profits
- I have not done such an analysis yet but would be curious to see a chart of Malaysia Consumer Confidence Index against DFI Profitability
- Also wondering whether the Consumer Confidence Index of major visiting countries should be included
Please feel free to disagree and add on. Cheers.
Disclaimer: Vested