DGL - DGL Group

[Ferg]

A quick summary of the prospectus:

• The issue is for new shares to fund expansion (acquisition of Chem Pack + capex) and repay debt
• Founder will own 57% post-float
• Forecast Dividends = nil in the short term (cash used for acquisitions yet to be identified?)
• Droughts in Australia will impact negatively on revenues
• Top 10 customers are 57% of revenues
• Strong Balance Sheet with debt/equity at 26-28% before retirement of debts from surplus cash not used for acquisitions
• At a forward PE of 24.6 this is a slow burn unless they can come up with some meaty acquisitions
• Challenge for 2022 will be restoring environmental solutions revenues which have been in decline since at least 2019 (~32% of total revenues)

Financials below:

DGL/DGC	2020	2021	2022
Revenues	$180,050	$189,916	$209,657
Growth	10%	5%	10%
Gross Margin	31.0%	35.0%	34.5%
NPAT	$4,833	$9,497	$10,447
EPS	$0.019	$0.037	$0.041
PE Ratio	53.2	27.1	24.6
NTA	$153,750	$162,395	$172,046
NTA/Share*	$0.60	$0.63	$0.67
FCF	-$15,822	$1,296	$8,480
FCF/Share	-$0.062	$0.005	$0.033

Note: 2020 and 2021 assume inclusion of Chem Pack over the full periods.

*The NTA for 2021 and 2022 is my projection of the the tangible assets based on forecast profitability, although the actual values may drop by 4c per share depending on the treatment of pre-acquisition payments.

EDIT: all values quoted are $A per the prospectus and the PE ratio and other metrics are based on the issue price of A$1 per share.

[Snow Leopard]

Well, no complaints from me so far, based on ASX trading:

Up 24.5% on IPO price
Up between 14.7% and 33.2% on Monday (listing day) trading.

2021-05-25-SnowLeopard-A.jpg

10 Adorable Snow Leopard Photos with Intriguing Facts

[percy]

For Whatsup.

[whatsup]

For Whatsup.

I did a quick scan for the heading, couldnt see it so posted one, sorry Ill try to delete it, cheers.

[Snow Leopard]

DGL announces strategic acquisition of Labels Connect

...a small but strategic acquisition...

...What we are often finding is that the production of labels doesn’t always align with our distribution times, and this slows the delivery timetable...

You gotta love this company, [ whilst it is going the right way ]

[Snow Leopard]

DGL expands into North Queensland

Announcements coming thick and fast from this company, was another three days ago.

So this one is about a facility in Townsville, where our Shane won both the Supercar races last weekend and hopefully will do well in the three races this weekend.

Go DGL Group.

Go Shane
2021-07-15-Shane.jpg
Autosport

[Ferg]

You have done well out of this Snow Leopard.
https://nz.finance.yahoo.com/quote/D...chart?p=DGC.NZ

Growth had to come from acquisitions and restoring environmental solutions revenues. Good to see they are pursuing growth via expansion and and acquisitions with 4 announcements in the past month.
https://www.nzx.com/companies/DGC/announcements

Whilst one would expect the investments to be EPS accretive, it's hard to say by how much.

[Snow Leopard]

Todays biggest NZX riser ( at the time of posting ), going the same direction on the ASX.

Wonder what is going on

[Louloubell]

I bought in yesterday and am enjoying the ride. No patience required 🤪

[Snow Leopard]

Mad spending spree continues, buying up in Western Oz this time, but issuing a few new shares as the cream on the top of the cake.

Probably about time they put the wallet away.

Now about that cake:
cake-lightblue1.jpg
https://iambaker.net/red-velvet-cake...whipped-cream/