I am still holding DKSH and on private note, in fact I bought more but in small quantum. It is a unique company with very little competitors in Malaysia. The only thing is it was not performing as well, but recently in the recent quarter results it managed to do better which causes its share price to rise recently. To be frank, I was not happy with its cashflow last 2 -3 years, but I feel that there are not that many similar opportunities just like this company. In its latest announcement, it terminated a telco business and it seems it replaces the business with a smaller telco. I am not sure who, but it seems that the margin was too small, hence the termination of the bigger telco.
I am not going to provide guidance, but one will need to understand the business better. From this webcast, you will know the uniqueness of the company although it is for entire Asia.
Listen to the webcast for DKSH's 1H2016 parent. Again, to invest one will need to understand the business.
I like its business, its strength and uniqueness. As countries (Malaysia included) push for consumption based economic growth, DKSH will benefit more. In the webcast, it says DSKH takes opportunity from companies who want to turn its fixed costs to variable costs, hence its engagement with DKSH who has larger and stronger presence to any company who wants to do business in those countries. More and more companies are focusing on what they do best, hence leaving DKSH on distribution and marketing.
There were many questions with regards to its competitors and according to the Group CEO, he sees only 2 major competitors - Li & Fung and Zuellig. Zuellig has presence in Malaysia but I do not see Li & Fung.
In future, I do see however China distribution company wanting a piece of the pie here in SEA region but it is not that easy to take DKSH's strength away.