Mostly motorcycle parts spraying, can be the Motor repair shop and also those who would spend time doing their own DIY in motor colour spraying. Their price compared with competitor also consider cheaper (I checked in shopee one), so some people may opt for buying spray paint to do their own painting to save up money. They have about 25% of market share in Malaysia.
SAN FRANCISCO, Nov. 10, 2020 /PRNewswire/ -- The global aerosol paints market size is anticipated to reach USD 319.8 million by 2027, according to a new report by Grand View Research, Inc., growing at a CAGR of 5.6% from 2020 to 2027.
• Valuation is cheap. Despite being the largest port operator in Malaysia, its valuation is still only less than half of its next biggest competitor, Westport.
• Dividend yield is high at between 5.4% to 6.6%. Given the low interest rate environment, this would appeal to a lot of dividend seeking investors.
• Cargo handled in 4Q20 is already passed precovid level. It is even higher that the pre trade war level which started in FY18. The largest port in the group is Pelabuhan Tanjong Pelepas where the 2M shipping alliance has decided to make it their Asean HQ Port. 2M consist of the 2 largest shipping companies in the world: Maersk and MSC.
• Bonus event. Potential monetisation of Port business via IPO. The group is looking to raised RM4bil via IPO. Assuming the amount is from the sales of up to 40% interest in the port business, this values the port business at RM10bil which is way above the current market cap of only RM2.5bil. This does not include their 38% holding in Malakoff (valued at RM1.8bil), 31% of Gas Malaysia (valued at RM1bil) and their Engineering business which is currently the main contractor for MRT2 (via JV with Gamuda).
With Biden being the new President of US, you can expect him to overturn Trump’s America First Policy. This will make it easier for US to trade with other countries including Europe and China which will increase global trade and benefits ports operators like MMC.
Papayashot, i also never use before aerosol paint. If im not wrong, DPIH have lesser variety in colours compared to Samurai 2K but due to lesser colours they have better profit margin.
Issajoke, kinda curious to c how MCO benefits DPIH sales. I think its BACTIX sanitizer is not the main contributor to its increasing sales lately, am I right?
Definitely not, is not mentioned in their latest QR and they are spending most of their time marketing their aerosol product (from Facebook), I assumed Bactix is just a news to boost their share price, see no effort in marketing sanitizer but probably wont hurt them much as they already have most of the raw material to create sanitizer due to their business in manufacturing aerosol products.
"Samurai operates mainly in Southeast Asia with Indonesia and Malaysia as their core markets, contributing 53.6% and 34% of the revenue for FY19 respectively. (FY19 Revenue is RM72.6 mil)"
I'm not sure if they are market leader in Indonesia tho, I only found this on the web, hope this help. Is quite a niche market so the info may not be sufficient.
ya issajoke, DPIH market share in Malaysia is more than Samurai 2k, but NOT overseas. I think that's y DPIH wanna expand to other ASEAN markets.... Hopefully its new plant in Tangkak can start construction soon....
the Group anticipates to commence the tender process to appoint a contractor within the third quarter of 2020. The construction of the New Building is expected to take approximately 18 months. The commissioning of the new machinery and its subsequent trial runs will take a few more months thereafter.
Furthermore, the upgrade of the existing aerosol paint production factory is still ongoing. The IPO Proceeds in relation to the plastic cap production is partly to be used for renovation of the new plastic injection moulding factory, which is currently at its preliminary stage.
My Point of View Pros: - Low Substitution product - Excel with 1/4 Market share in Malaysia - Net Cash Company - Good cost control compared with competitor - Directors with strong background in Paint Industry
Cons: - Still unable to fulfill their target in Prospectus since listed to build their new factory (Extended until 2024) - Failed to penetrate China Market through Joint Venture (Probably because of Covid ?) - Most of their profit is from Malaysia (probably 99%) - Low Market Capital with huge amount of shares (Director hold 75% of the shares)
The new listing HPPHB can push from the first day of listing.. triple the ipo price now ... profits and number of shares similar to DPIH... this stock really underperforming ...
2020/21 is the many active trade in Stock market, since it is listed everybody gonna keep goreng it and more people knw about HPP more than dpih thanks to fb anf Internet
what i saw from their competitor is that they see more demand during mco and cmco cause people are getting themselves into DIY stuff due to too much free time, is like picking up a new hobby. And also due to low crude oil price, their cost of making spray can also cheaper, thats why their margin increased. Compared with last yr, crude oil still low price.
Thanks issajoke. Wondering whether this DIY stuff is sustainable hor... I think DPI aerosol is mainly used by motorists, instead of those big car factory..
some car or motor repair shop will have their own machine like paint gun but would be troublesome for them as maintenance can be a headache, that's why they will go for spray can as it is easy to carry and no maintenance needed with long shelf life.
@Papayashot, btw i think u are looking at the wrong perspective regarding of aerosol paint, u should be looking on the purpose of spray paint that is more towards maintenance rather than DIY. Cause the main purpose of paint is to avoid rust or sunlight that will cause damage to woods, metal and stuffs. I think is easier that way for you to analyze, maybe u could try asking people who are involved in motor maintenance business/ motor repair shop, cause those people are more familiar with this.
ya correct @issajoke. I will analyse on that direction. By the way, can I pm u? It seems to me that you're a serious investor on this company.. Maybe we can work together :-)
Aiya, we can share here, so that other people also can giv us some positive and negative view. Have to be careful tho, 4 Feb maybe will have full lockdown
if price drops means another oppurtunity... Most important here is its business can grow. So far, I found that DPI faces very stiff competition from Samurai 2k. Anybody uses these 2 paints here pls share your thoughts..
Anchor's advantages: - good quality of paint & viscosity, brighter color (true color), save (no need for many layers for flat color) Anchor deficiency: - uncomfortable nozle (hard), easily clogged, sometimes out of splat, limited product variety & not different. Samurai advantage: - good nozle system, better quality spray spray, wide spray radius, variety of products including premium products like 1 k paint products, 2 k in cans, undercoating & various side products. Samurai deficiency: - paint is a bit viscous (melted), less savvy (1 bottles of anchor = 1 1/2 samurai), need a lot of layers for a flat color (depend on the color type), for metallic color too many metallic sparkling & too much rough until the actual color is a bit sinking & slightly grey because of too much mettallic.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
wolfofsantorini
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Posted by wolfofsantorini > 2021-01-06 10:32 | Report Abuse
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