Dutech is the business of making safes used in bank ATMs. It bought Format a safe maker in Germany last year. It is also into contract electronics manufacturing. It has a global footprint.
The EPS has been growing. Latest qtr is about RMB 3.6 cents, up RMB 1 cents from last year. my forecast full year earning should be about RMB 12 cents, SGD 2.4 cents.
At current price, the forward PE is about 5.75 times at current price SGD13.8 cents. NTA about RMB 105 cents. about SGD0.20. The company gave 1 cents in 2011. Looks like the company is keeping cash for future expansion.
One of Dutech Major shareholder is OCBC Investment and the chairman has been buying back shares.
Weakest of this counter is lacking of liquidity. Any comments?
Vested.
Last edit: 11 years 6 months ago by sg3783. Reason: typo
Thank you sg3783 for your post. A long time ago, NextInsight had a few articles on Dutech (before it kind of lost interest in regularly communicating with the investing community in Singapore).
PE of 4+ times, not rare among S-chips. Dutech, however, has global customers and a business with a wide moat. Do you think these mitigate key risks associated with S-chips?
Hi, I did a careful analysis of this company last night, and its business looks pretty solid, price also has not gone up very much. However, I fear that its S-chip stigma (because of dead fish like Eratat) may cause it to wind up in a value trap for quite a long time, no matter how well its business becomes. Typical examples are Yamada Green Resources and Sino Grandness. What do you think?
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