Dukang Distillers Holdings

[Wildreamz]

Dukang will only get worse from this point as the central government has stepped up enforcement against superfluous spending of officials .....

Perhaps.

Over the past years, despite the down trend in the Baijiu industry, Dukang has been outstanding in increasing their sales and profit as they establish their brand name and market towards the broader mass market (2nd tier Baijiu), which is less affected by the spending cut.

However, the larger Baijiu makers such as MaoTai has been starting to shift their attention towards the lower tier mid range market. So their future is hard to predict right now.

Depending on their next quarter result, I may divest my investment in Dukang, if they can't show strong year on year growth in sales (market share). But the previous quarter results have been promising. The next quarter results maybe quite indicative.

@rogerwilco

Yes, as an investor, I do feel they are obliged to give us a good answer. For folks who have significant holdings in Dukang, I think it is good to find out asap. A back of the envelope calculation tells me that Dukang could have distributed around SGD$0.01 or around 3.7% dividend based on the recent price of $0.27 instead.

That said with some checking on Dukang's official home page, it is not hard to find reports where Dukang participated in some kind of charitable activity, for example:

1. http://www.dukang.com/news/ShowNews_list01.aspx?no=555
2. http://www.dukang.com/news/ShowNews_list02.aspx?no=492