Posted by sumato88 > 2017-02-22 01:22 | Report Abuse

DKSH reported RM13.4m profit in 4Q16, +32.6% yoy & +146.2% qoq. This brings its full year 2016 profit to RM50.5m, +37% yoy. If we adjust the one-off impairment on receivables of rm15m in 2016, the full year core profit +70% yoy, translating to a record core profit of RM62m (13.4x FY16 PE). Since its inception, DKSH has never record core profit of more than RM60m p.a. This is literally a record year for the co!

As I expected, operating cash flow return to positive and the co closed the account with RM42.9m net cash as at FY16. I think this helps to clear the air as some investors were worry about the "deteriorating" cash flow in 3Q16.

Management's tone on 2017 outlook is upbeat vs cautious view on 2016 when IR reported its 4Q15 results last year. Organic growth for the revenue was at high single digit in 2016, after adjusting for the impact of change of clientele for telco prepaid card.

Going forward, the co is expected to continue to grow its revenue at mid to high single digit, while profit is expected to grow at 3x of its top line growth as I explained in my first article earlier. Assuming 20% core profit growth in 2017, DKSH is trading at 11x FY17 PE, or 8.2x PE if you exclude the net cash and net working capital (RM457m) as at FY16.

Again, for a distributor of healthcare and fmcg products, net working capital is as good as cash and that serves as a basis for the high teens PE multiples that most of the dominant distributor trading at, including DKSH Swiss which is trading at 20x fy17 PE.

By valuing the co at 17x FY17, the fair value would be RM8.00, translating to 52% upside from the current price.

I am happy with the performance indeed.

Posted by Flintstones > 2017-02-22 09:46 | Report Abuse

Guess Mr Market agrees with me. DKSH is a good stock but there are much better opportunities out there

Posted by dotasifu > 2017-02-22 22:47 | Report Abuse

drop so much today...with huge wolume..

Posted by Flintstones > 2017-02-23 18:42 | Report Abuse

Not much growth potential going forward. They have just lost two major customers. Although DKSH current assets are very liquid and as good as cash as what sumato claimed, investors will always look at the EPS first.

Posted by Starleague > 2017-02-24 14:52 | Report Abuse

Hi Flintstones - which two clients have they lost? They have deliberately dropped a telecommunications client that was dragging down profits. Whilst negative for 2016, this is a positive development for 2017.

Posted by hoKT55 > 2017-02-26 13:40 | Report Abuse

Not much growth potential already. Weakening ringgit will cut margin going forward. Petrol price already shoot up 21% this year! Oil price go up more is very bad for DKSH. Potential to suffer loss this year. Target price is RM 3!

Posted by hoKT55 > 2017-02-26 13:40 | Report Abuse

Not much growth potential already. Weakening ringgit will cut margin going forward. Petrol price already shoot up 21% this year! Oil price go up more is very bad for DKSH. Potential to suffer loss this year. Target price is RM 3!

Posted by paoblocrk > 2017-02-27 10:34 | Report Abuse

@Sumato88, I believe in you... hahahaha at this rate, I am so tempted to continue to sapu somemore DKSH as fixed deposit. hahahahaha.....

RM8.... I think you may have conservatively slightly undervaluing DKSH, I think u should value it at 20x like its parent in Swiss which is at RM9.4, since we are in a developing country and there are more room for growth, and as more manufacturing company is moving to specialization, definitely they will be needing DKSH's B2C or B2B outsourcing services. (this is assuming there are no other shocks like impairment of receivables or inventories anymore in future.)

I always like this kind of stock that gives transparent and honest earnings rather than other goreng-goreng stock, if the honesty and integrity continue, hopefully one day it be like PETDAG or Public Bank.... fly to RM23 or 24 ( Just my dreams)......

Posted by Flintstones > 2017-02-28 13:35 | Report Abuse

Hahahahahahahahahahahhaaha

Posted by michaelwong > 2017-02-28 18:27 | Report Abuse

There is no wrong sleeping on a giant wonderful mattress . ......kekeke !

Posted by paoblocrk > 2017-03-28 10:22 | Report Abuse

Jack Ma coming over.. and probably DKSH is a beneficiary of the E commerce hub?

Posted by Tchutcha88 > 2017-04-07 00:12 | Report Abuse

Possibility is low...anyway still way undervalued share. Time will gives this share a fair valuation.

Posted by suregain > 2017-04-25 13:21 | Report Abuse

Bought 4.81

Posted by suregain > 2017-04-25 16:38 | Report Abuse

sold 4.86

Posted by ken law > 2017-05-12 23:11 | Report Abuse

after two months holding , paper gain 8%

Posted by Tchutcha88 > 2017-05-22 23:45 | Report Abuse

LOL. sad for you suregain.... As I said previously, time will gives this share a fair valuation. Today close RM 5.26.

Posted by ongkh98 > 2017-05-24 18:40 | Report Abuse

Latest Quarterly Result ... sales improved slightly but bottom line is not as good as last quarter and the same quarter last year, :(((

Posted by Hk Wong > 2017-05-25 09:47 | Report Abuse

people is selling

Posted by KLCI King > 2017-05-25 16:55 | Report Abuse

Good company with bad price performance

Posted by suregain > 2017-05-25 17:01 | Report Abuse

tcuchucha must b shaking like hell.. hahahahah

Posted by Humble_Investor > 2017-06-22 13:51 | Report Abuse

There has been 753 lots (of 1000 units per lot) cross traded last 2 days @ RM5.00. Anyone has more info? TQ.

Posted by lazycat > 2017-08-09 19:02 | Report Abuse

this is another victim of e-commerce , probably will suffer the same fate as parkson

Posted by suregain > 2017-08-09 19:55 | Report Abuse

Poor result.. no show tomorow

Posted by apolloang > 2017-08-09 20:22 | Report Abuse

poor results yet 5.00.....likely cannot down much due to low liquidity.but if didn't down much,if will gradually slow slow down.better avoid this stock until next quarter

Posted by Stock Kingdom > 2017-08-09 21:00 | Report Abuse

Volume very low, easily get trapped, beware

Posted by kyong > 2017-08-10 00:21 | Report Abuse

The quarterly result is quite alright. Although the Opex has increased, it is still the second best quarter over the paste two years.

Posted by kyong > 2017-08-10 00:24 | Report Abuse

Q2Q is improving.

Posted by kyong > 2017-08-10 00:25 | Report Abuse

Probably due to Hari Raya festival.

Posted by kyong > 2017-08-10 00:27 | Report Abuse

If next quarter can also see the similar improvement, it would mean that the business is really recovered.

Posted by kyong > 2017-08-10 00:30 | Report Abuse

Should have a good chance to see some improvement in the share price.

Posted by nori > 2017-09-02 13:41 | Report Abuse

dksh human resource staff in malaysia are good for nothing. They should be fired.

Posted by Booyeah > 2017-10-07 09:57 |

Post removed.Why?

Posted by kyong > 2017-11-22 16:31 | Report Abuse

OMG! What happened to this counter? Drop like mad !!!

Posted by kyong > 2017-11-22 16:31 | Report Abuse

Anyone can share any news?

Posted by pakau > 2017-11-23 11:56 | Report Abuse

stable company, perhaps the online B2C threaten distribution chain business.. thanks jack ma

Posted by cpng > 2017-12-13 00:05 | Report Abuse

新山驚爆美贊臣（Mead Johnson）奶粉遭假冒的事件。
DKSH是奶粉公司美贊臣授權的經銷商。
Now you know the reason why share price plunge to 52 weeks new low.

Posted by cpng > 2017-12-15 10:43 | Report Abuse

The baby milk powder issues are getting worse , expect more selling coming in.

Posted by cpng > 2017-12-15 11:10 | Report Abuse

DKSH 一路来没有成交量，今天又出现新卖压，证明有内线人又有新消息，自己先跑票！

Posted by gnail > 2018-01-17 14:58 | Report Abuse

what happen to dksh? gg?

Posted by Roger Lim Tau Kiat > 2018-03-12 22:06 | Report Abuse

看来是要再大涨了。

Posted by yangstockwatch > 2018-05-22 10:20 | Report Abuse

No more gst... dksh shall return.... watch.

Posted by Acon888 > 2018-06-30 00:22 | Report Abuse

what the fuck, fall 48 sen ?

Posted by BlackWhite > 2018-07-02 20:44 | Report Abuse

Rise only 30sen

Posted by michaelgoh > 2018-08-08 21:30 | Report Abuse

Will continue to fall

Posted by sapurakencana > 2018-08-09 09:17 | Report Abuse

you want buy cheap? sorry lah no pasar malam lelong here!

Posted by James Ng > 2018-09-10 11:53 | Report Abuse

https://klse.i3investor.com/blogs/general/173414.jsp
[转贴] [DKSH HOLDINGS MALAYSIA BHD：销售和服务税（SST）以及特定客户一次性负面影响的合同] - James的股票投资James Share Investing

Posted by Yael Jasper > 2018-09-12 11:04 | Report Abuse

Good stock, make huge profit !

Posted by stahl2017 > 2018-12-06 10:26 | Report Abuse

removed from syariah list, expecting some funds will sell, might be good chance to accumulate

Posted by sapurakencana > 2018-12-07 18:59 | Report Abuse

Any reason remove DKSH from syariah list. With annual turnover 5-6bil,and constant dividend 8-9 cent per year,i wont believe fund manager wil sell this counter.only those Sohai who dont know investment will keep on selling this counter. PE 8 means within 8 years time,you can get back your investment. Think yourself before invest.

Posted by stahl2017 > 2018-12-10 16:39 | Report Abuse

no reason was mentioned, could be the products they distribute non Halal, could be the loans structure not comply to syariah, etc.... This counter has very low liquity , so there is a possibility of some syariah compliance funds are forced to sell (just my personal opinion, not really sure how those funds work).