Dutech Holdings

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(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)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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(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)
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Going against the overall SGX market, Dutech yesterday (18Aug16) closed at a new record high of $0.505. Something positive coming up?
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@dydx : It's called the NextInsight CIMB Analyst bump lah

6 June
http://www.nextinsight.net/index.php/sto...arget-61-c
this one they have report with TP 61c

15 Aug
http://www.nextinsight.net/index.php/sto...gs-in-fy16
This one more coverage

19 Aug
http://www.nextinsight.net/index.php/sto...etter-2h16
THis one is their top 10 picks

IMHO if dun hit 61c they will keep making article until their TP.
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
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saw this insightful post on nextinsight

http://www.nextinsight.net/index.php/sto...-companies
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(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)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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(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.
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(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)
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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(25-08-2016, 10:05 AM)punklitez Wrote: saw this insightful post on nextinsight

http://www.nextinsight.net/index.php/sto...-companies

From the link you posted

"Negative interest rates on deposits in Japan have already spurred an increase in safes as depositors withdraw money from banks and keep them at home. (See report).

This phenomenon is not exclusive to Japan as sale of safes in Europe has been on the rise too."

Sales at Format grew double digit.

"Rivals Format Tresorbau GmbH and Hartmann Tresore AG also report double-digit-percentage German sales increases."


http://www.wsj.com/articles/german-saver...1472485225
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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 Big Grin .

http://www.theedgemarkets.com.sg/sg/arti...trajectory

http://www.fallbrooktech.com/nuvinci-technology

(Vested...hope both news turn out positively for Dutech)
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