(14-08-2016, 06:38 PM)TTTI Wrote: [ -> ]Hmmm...
While the FY16Q2 results are no doubt pretty encouraging, has anyone else noticed the large increase in the impairment losses on trade receivables of RMB1.9mil?
The corresponding impairment of trade receivables that I can find in FY15AR is much much much lower.
Which leads me to conclude that most of the impairment of receivables comes from the recent acquisitions...
RMB 1.9mil is still a drop in the bucket compared to the entire receivables of RMB 181mil, but we certainly have to monitor this in the coming quarters
The company recent acquisitions were mainly on bargain purchases i.e. with negative goodwill. The company had done impairments on assets after the acquisition e.g. DTMT. It is no surprise, the same has been done on Krauth. FYI, the negative goodwill of Krauth was about 2.5 mil RMB.
The High Security segment is doing well, with sustaining margin improvement, after Format acquisition in 2011. The improvement will sustain, with stronger USD (sales), and weaker RMB (cost) over time.
The DTMT turnaround, seems is on-going but slow, and hopeful Krauth acquisition, will speed-up the turnaround.
(vested)
(14-08-2016, 09:43 PM)CityFarmer Wrote: [ -> ] (14-08-2016, 06:38 PM)TTTI Wrote: [ -> ]Hmmm...
While the FY16Q2 results are no doubt pretty encouraging, has anyone else noticed the large increase in the impairment losses on trade receivables of RMB1.9mil?
The corresponding impairment of trade receivables that I can find in FY15AR is much much much lower.
Which leads me to conclude that most of the impairment of receivables comes from the recent acquisitions...
RMB 1.9mil is still a drop in the bucket compared to the entire receivables of RMB 181mil, but we certainly have to monitor this in the coming quarters
The company recent acquisitions were mainly on bargain purchases i.e. with negative goodwill. The company had done impairments on assets after the acquisition e.g. DTMT. It is no surprise, the same has been done on Krauth. FYI, the negative goodwill of Krauth was about 2.5 mil RMB.
The High Security segment is doing well, with sustaining margin improvement, after Format acquisition in 2011. The improvement will sustain, with stronger USD (sales), and weaker RMB (cost) over time.
The DTMT turnaround, seems is on-going but slow, and hopeful Krauth acquisition, will speed-up the turnaround.
(vested)
Thanks for this comment, but I was referring specifically on the impairment of receivables, not the -ve goodwill.
For sure, impair the goodwill. In fact, I write off all goodwill in my own investment analysis.
But the impairment of receivables would be more of a concern to me as it tells me about the credit worthiness of the clients, and in this particular instance, it hints that the receivables of Krauth is of a more risky nature than that of the Dutech.
Again, I'd emphasize that this is still a really tiny portion (still well within acceptable) currently.
Also, since there's no breakdown of the impairment, we won't know which segment did the impairment come from.
I'm just pointing out the fact that there's no such impairment of receivables in FY15, but in FY16Q1 there's a 800K RMB impairment, and as of FYQ2, this has increased to RMB 1.9mil.
(vested)
Going against the overall SGX market, Dutech yesterday (18Aug16) closed at a new record high of $0.505. Something positive coming up?
(25-08-2016, 10:05 AM)punklitez Wrote: [ -> ]saw this insightful post on nextinsight
http://www.nextinsight.net/index.php/sto...-companies
Thank for the sharing.
After the "Diebold Nixdorf", the next competitor is NCR, but NCR seems having "security holes" in its ATM setup, with recent incidents in Taiwan and Thailand. Will "Diebold Nixdorf" better up after the incidents? Dutech, as its main supplier, will benefit from that to gain bigger market share.
http://news.softpedia.com/news/thai-bank...7594.shtml
The company is sitting on the global wave of banking digitization, with wider deployment of ATMs, or smart terminals, to reduce human cost.
(vested)
(25-08-2016, 02:16 PM)CityFarmer Wrote: [ -> ] (25-08-2016, 10:05 AM)punklitez Wrote: [ -> ]saw this insightful post on nextinsight
http://www.nextinsight.net/index.php/sto...-companies
Thank for the sharing.
After the "Diebold Nixdorf", the next competitor is NCR, but NCR seems having "security holes" in its ATM setup, with recent incidents in Taiwan and Thailand. Will "Diebold Nixdorf" better up after the incidents? Dutech, as its main supplier, will benefit from that to gain bigger market share.
http://news.softpedia.com/news/thai-bank...7594.shtml
The company is sitting on the global wave of banking digitization, with wider deployment of ATMs, or smart terminals, to reduce human cost.
(vested)
I think NCR probably will benefit more. It's not that NCR's systems are insecure. It's that banks not paying the extra to upgrade to the latest versions of the NCR software / hardware. For a new ATM system to come in, it's actually more expensive for a bank than to upgrade the existing ATM systems.
(25-08-2016, 04:15 PM)Sampling Wrote: [ -> ] (25-08-2016, 02:16 PM)CityFarmer Wrote: [ -> ] (25-08-2016, 10:05 AM)punklitez Wrote: [ -> ]saw this insightful post on nextinsight
http://www.nextinsight.net/index.php/sto...-companies
Thank for the sharing.
After the "Diebold Nixdorf", the next competitor is NCR, but NCR seems having "security holes" in its ATM setup, with recent incidents in Taiwan and Thailand. Will "Diebold Nixdorf" better up after the incidents? Dutech, as its main supplier, will benefit from that to gain bigger market share.
http://news.softpedia.com/news/thai-bank...7594.shtml
The company is sitting on the global wave of banking digitization, with wider deployment of ATMs, or smart terminals, to reduce human cost.
(vested)
I think NCR probably will benefit more. It's not that NCR's systems are insecure. It's that banks not paying the extra to upgrade to the latest versions of the NCR software / hardware. For a new ATM system to come in, it's actually more expensive for a bank than to upgrade the existing ATM systems.
actually if you look at the ATMs used by the local SG banks eg UOB, it is already a mixture of NCR or Wincor. So the vendor relationship is already there
So I guess it is not exorbitant to switch vendors.
Even in Thailand, I observe same banks can have both NCR and Diebold.
Observation only. (while wandering the streets, waiting for people to finish shopping)
Hi all,
Some developments regarding Dutech Holdings Ltd.
1) Potential acquisition on the works for Dutech. A total purchase price in the lower seven digit (EUR) range was agreed for the purchase of the
Retail & Logistics and Public Transport business units and the Parking Systems business unit of Metric Group Holdings Ltd. Looking at the respective business units in the Metric Group website, they deal with ticketing machines for parking and mobile terminals, which is similar to what Dutech does.
http://www.metric-group.com/nc/en/media-...r-plan/42/
2) A new building has been constructed at the Sutong plant to manufacture NuVinci continuously variable planetary (CVP) transmissions, for an undisclosed European automotive player. However, the manufacturing contract is still being negotiated. Seems like Dutech is expanding their manufacturing repertoire
.
http://www.theedgemarkets.com.sg/sg/arti...trajectory
http://www.fallbrooktech.com/nuvinci-technology
(Vested...hope both news turn out positively for Dutech)