Dukang

Solid result....why not moving?

These are some of the reasons:

1) Solid result, so what. Where is the money? The directors paid themselves. Shareholders get nothing. (Opportunity cost of holding)

2) Cockcoach theory. Company have some issue need to iron out. Govt. regulatory concerns, etc (When you see one cockcoach there may be a nest)
3) Ceesation of substantial shareholders recently.


On paper this company have solid growth, but! but! but! See above.
I'm not vested.

Sold today for small profit... not comfortable with the resignation of executive director who is in-charge of finance coupled with the recent sold off by fund manager... 
deployed fund to buy Chu Kong Shipping which is still at a discount to NTA.
 
 
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[Rock 08-02-2013]:

These are some of the reasons:

1) Solid result, so what. Where is the money? The directors paid themselves. Shareholders get nothing. (Opportunity cost of holding)

2) Cockcoach theory. Company have some issue need to iron out. Govt. regulatory concerns, etc (When you see one cockcoach there may be a nest)
3) Ceesation of substantial shareholders recently.


On paper this company have solid growth, but! but! but! See above.
I'm not vested.

Loaded!

From article "DUKANG DISTILLERS: 2Q2013 net profit jumps 52.5% to Rmb 144m" posted in next insight:
Q: Your cash reserves are as large as your market cap and no dividends are paid. What evidence is there that the cash is real?

BDO Hong Kong and BDO Singapore are external auditors that jointly verify our financial accounts. We have Rmb 730 million in cash reserves. We have Rmb 60 million of outstanding bank loans.

We have budgeted Rmb 40 million for expansion in Taiwan. Rmb 200 million has been earmarked for capacity expansion. (700 fermentation pools are being dug and the company expects to complete this by July.)

We are considering allocating Rmb 200 million for operations of the facilities at Ruyang (Luoyang) and Yichuan (Zhoukou). As for the remaining Rmb 200 million, we are considering it for dividend payouts.
As of 31 Dec 2012, the total number of issue Dukang shares is 798,289,318. If Dukang really considered the whole rmb 200 million as dividend payouts and in one single payout, this could means dividend of rmb 0.25 per share or sgd 0.05 per share based on exchange rate of 1 rmb = 0.20 sgd. This will work out to be an attractive 15.6 % yield based on 0.32 share price. This dividend payout probably will only be confirmed during the 4th quarter results annoucement (6 months away) and many things could happened. 
 

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