Guys,
As per profit in Q1 and Q2 ,DSI still has good potential to go up, and Q3 result is near I guess it should make a new high before/after Q3 result.
Watch out Gicco it should give some surprises in coming weeks.
I would be more curious to know the projects pipeline of DSI than anything else. Project announcements may bring around massive price increases for the scrip considering its smaller base. My feel on this scrip (as sunilkhaitan also pointed out) is that DSI may turn out to be one of the biggest stars of next quarter/by end of the year.
Below is the extract from the Q2 financial results statement.
DSI 2009 Q2 statements Thursday, July 30, 2009:
Khaldoun Tabari, DSI Vice-Chairman and CEO, said: “DSI’s ability to anticipate change and adapt to the transforming market dynamics ahead of time, has enabled us to produce strong financial results, in a contradictory economic scenario. The strong foundation we laid in focusing on creating customer value through integrated service offerings have enhanced our readiness to execute in the long term.”
“Our financial results also support our inorganic growth strategy, judicious investments, and focus on regional expansion. In the coming months, DSI will announce many mutually beneficial alliances that will further enhance our shareholder value.”
Tabari reiterated that DSI’s expansion strategy was on track, confirming that announcements on potential acquisitions across the Middle East should be expected later this year.
Sam,
As per Q1 and Q2 results of DSI, I estimate annualised EPS more than 15 fils and if we take standard P/E of 10 that is not too high I assume price around 1.50 after Q3.
Gicco annualised EPS should also more than 20 fills .
I agree, projects backlog is as important as profitabilty
But I still think the ST fair value for DSI is just above 1 Dhs
REMEMBER
It was DSI management team and owners' decision to evaluate and sell these shares at 1Dhs in IPO BEFORE the economic crisis.
This was their own estimate to how much is their company worth (while in much better economic conditions)
Of course the company grew a bit since the IPO (only 16 months back), but this should put the value at Dhs 1.1 or so
15 fils profit for 2008 the P/E is 6.x which is good but ARCT is just under 4 (ARTC is much larger and much more profitable)
Don't get me wrong, I see 10-15% upside for DSI...but nothing more
Speculators may decide to pump DSI much higher (like DFM Co now), but eventually it will go back to its fundamentals
The good news is that DSI kept most of the IPO returns in cash, Hence they were able to buy-back some of the shares they just sold for 1Dhs+ @85-90 Fils...nice easy 10% profit
The good news is that DSI kept most of the IPO returns in cash, Hence they were able to buy-back some ...
Sam,
For DSI New Projects would make a huge difference to their cash flows/balance sheet. Do not look at the earnings too much for evaluating DSI at this moment. Their current pipeline is worth AED 6 Billion (as far as I remember) and I think their quarterly net profits range around aed 70-90 million. One good project announcement and the mathematics would change substantially.
I might be overstating but I feel that DSI has a potential to double the scrip price by year end.
DSI Q2 profit was AED 90 million. Q3 might be 100 plus. The company is foucsing in Saudi and with current projects on hand it looks quite safe to enter at this level.
For DSI New Projects would make a huge difference to their cash flows/balance sheet. Do not look at the ...
Press Release 28 September 2009:
Drake & Scull International Win First Contract in Thailand
DSI awarded AED130 million contract for complete MEP works for The River condominium building in Bangkok.
Dubai: Drake & Scull International PJSC (DSI) has been awarded its first contract in Thailand, a AED 130 million Mechanical, Electrical & Plumbing (MEP) contract for The River development, a luxury condominium building located on the Chaophraya River in Bangkok.
The project win follows the establishment of DSI Thailand offices earlier this month.
Developed by Raimon Land, whose majority shareholder is IFA Hotels and Resorts, The River will consist of north and south towers of 42 and 71 floors consecutively. Each tower will contain one, two and three bedroom apartments, duplexes and penthouses. The project will also have a lap pool, wet edge riverfront leisure pool, fitness centre, sky garden with lap pool, water cooled air conditioning system and fully integrated fire warning systems.
DSI Vice Chairman and CEO Khaldoun Tabari said: "Our continued expansion, now going beyond the MENA region and into South East Asia, once again shows DSI is fulfilling the promises it first made when listing on the DFM. As we continue to grow and diversify our operations, DSI validates the faith investors are continuing to show in the company and its future."
"We are very enthusiastic about our newly opened Thailand office and DSI is actively looking to secure new deals in this region."
DSI's contract with The River incorporates the supply, installation, testing and commissioning of complete MEP works including: Air Conditioning, Ventilation, Plumbing and Drainage, Automatic Fire Fighting, Transformers, Cabling, Small Power & Lighting Systems, Busbar Risers, Earthing & Lightning Protection, Dimming System, Digital Interactive TV System, CCTV and Access Control System.
MEP works for The River will take 24 months
Project management and engineering positions will be filled by DSI employees from the UAE office with an Operations Manager being employed specifically for Thailand, while the remaining of the skills needed for the project will be provided by the local market.
DSI is a leading UAE-based end-to-end service provider of MEP contracting, infrastructure, water and power (IWP) and civil contracting services. On March 16 2009, DSI became the first specialist contracting company to list on the Dubai Financial Market (DFM)
As per Q1 and Q2 results of DSI, I estimate annualised EPS more than 15 fils and if we take standard ...
Now more DST members favouring DSI for long term investment and project price as DHS 2 in near future. I still beleive as per fundamentals DHS 1.50 acheivable after Q3 or not later than Jan.,2010.
My opinion for Gicco also in the same line that price should cross DHS 2 to DHS 2.50 on or before Q3. If any body having more ideas about Gicco please throw some light on it.
"These opinions are my peronal basis on the fundamentals and trend"
Now more DST members favouring DSI for long term investment and project price as DHS 2 in near future. ...
Press Release 07 October 2009:
Drake & Scull International awarded AED400 million MEP contract
Dubai: Drake & Scull International (DSI) PJSC has successfully been awarded a AED400 million MEP contract for a neighbourhood project in Abu Dhabi.
The project consists of a 14-storey office building, 14 apartment buildings of 14-storeys each, 148 townhouses and 11 luxury villas as well as various commercial spaces.
This is the seventh project announced by DSI in 2009 bringing the total value of these projects to an excess of AED 2 billion.
DSI is a leading UAE-based end-to-end service provider of MEP, IWP and civil contracting services and is currently working on projects across the MENA region. On March 16 2009, DSI became the first specialist contracting company to list on the Dubai Financial Market (DFM).
This news came after market closing, I think this would have positive impact on price tomorrow morning. What do you think guys?
The good news is that DSI kept most of the IPO returns in cash, Hence they were able to buy-back some ...
I see big problems for them (DSI) in Q4 based on information from their backlog report at the end of Q3. New projects will only hide the problem for a while before they have to come clean on cost shifting on existing projects. Rumour has it that the CFO has resigned.
As per profit in Q1 and Q2 ,DSI still has good potential to go up, and Q3 result is near I guess it ...
Not if a close review of it's existing backlog is undertaken - Major problems with revenues and costs and the receivables problem is growing by the day. I would expect them to receive only 50 to 60 percent of every dirham owed them on exisiting projects.
The project only has committed financing of around 250 million dirhams. There is a huge gap between financing and the cost of construction. The only way out is to take an equity stake in the project. I have heard from sources in Abu Dhabi that the project is already 4 months delayed and the general manager has resigned.
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