Duty Free International Limited, an investment holding company, trades in duty free merchandise under the Zon brand in Malaysia. The company wholesales, distributes, and retails duty free and non-dutiable merchandise, including imported duty free beverages, tobacco products, chocolates and confectionary products, perfumes, cosmetics, and souvenirs. It operates duty-free retail outlets/complexes and trading outlets located at various locations in airports, seaports, ferry terminals, border towns, and tourist destinations. Duty Free International Limited is also involved in the development of resorts; property investment and management activities; cultivation of oil palms; and sale of fresh oil palm fruit bunches. The company was founded in 1978 and is based in Singapore. Duty Free International Limited is a subsidiary of Atlan Holdings Bhd.
The share price has been falling off from the high of 44 cents to a low of 22 cents on 29 Mar 2018.Down 50%. Which is deemed as overly done.
The selling down may be due to the pending court case for tax related matter. I think the total amount for the tax is about RM41m.For actual details pls refer to Sgx/company announcement .
Looking through the announcement even if they have to include this tax amount their current cash-on-hand would be easily able to cover this tax amount. They have RM276.4m as reported on 9 mth financial results.
Looking through the Balance Sheets items:
For one can notice the Current Assets has a total value of RM518.859 versus their Total Liabilities of RM107.513m.
A Net Net position value of 4.83 times.
Their cash flow generation has been pretty healthy
The average dividend for past years is about 1.8 cents . Which is giving a yield of 8.18% base on current price of 22 cents. As at to date the dividend being payout is 1.85 cents for first nine months . I think the company would be able to continue in paying out the dividend..
I am vested on this counter and would wait patiently wait for the announcement to be made known in the near future.
Not a call to sell or buy.
Pls do your own due diligence.
(Trade/invest bas on your own decision)
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