SDI - SDI Limited

[Huskar]

I hold a little of this one and think it is a good business, as they accelerate revenues out of amalgam and into aesthetics which is now 45% of revenue.

However, they have just announced their business has been impacted with closure of many dental studios. This means NPAT likely $3.5-4.5m vs $7.3m last year. But at $83m market cap and little debt, I think its likely to weather the crisis ok.

In the short-term, may well retest 50c lows though, which would make it very compelling buy because likely a snap back in dental restocking once studios do reopen.

Also, the low AUD is now a strong tailwind for the Aussie-based manufacturer.

 

[galumay]

Nice update at the AGM, SDI doing well considering the impact of Covid. Rewarded with a nice little pop in the SP on an otherwise pretty red day.

 

[galumay]

Solid announcement from $SDI, guiding for up to 100% increase in NPAT for FY21 from FY20

 

[galumay]

SDI exceeded guidance, hitting 110% increase in NPAT, report looks strong on first pass, I like that they also compared metrics to last normalised year (2019), businesses with significant financial impact in 2020 should do this more often.

 

[divs4ever]

another 'bottom drawer ' stock for me

i bought in @ 45c in January 2018 , so while not doing double back-flips , it does raise a smile

now if all these silly disruptions cease ( probably the 12th of NEVER ) ...

 

[galumay]

I have been in them since 2016, my average cost is a bit higher than yours, but also happy to hold with a smile!

 

[galumay]

H1 2022, SDI showing the same results as many businesses we hold, increased revenue, big decrease in earnings, negative cash flows, all blamed on a combination of covid, supply restraints and labour inflation. I think its going to be a year or more before we see if there were actually structural issues with some of these businesses, or if they bounce back and recover.

 

[Dona Ferentes]

H1 2022, SDI showing the same results as many businesses we hold, increased revenue, big decrease in earnings, negative cash flows, all blamed on a combination of covid, supply restraints and labour inflation. I think its going to be a year or more before we see if there were actually structural issues with some of these businesses, or if they bounce back and recover.

View attachment 138442

Identical paste of revenue and earnings to EGN !??!

 

[divs4ever]

ASX and Media Release 17 February 2022

Half Year Results Announcement for 1H 2022 SDI Limited delivers record first half sales with bottom line impacted by significant freight costs
MELBOURNE, Australia – SDI Limited (ASX: SDI).
Net profit after tax of $2.7 million for the six months ending 31 December 2021, compared with $4.6 million for the same period last year. SUMMARY FINANCIALS (AUD) 1H 2022 1H 2021 Change % Sales ($m) 46.3 36.8 26.0
EBITDA ($m) 6.0 8.7 (30.3) NPAT ($m) 2.7 4.6 (41.2) Net Cash ($m) 6.5 11.1 (41.0)
Earnings Per Share (cents) 2.26 3.85 (41.3)
Interim ordinary dividend (cents) 1.50 1.50 unchanged

1H 2022 Highlights

• Record total sales of $46.3 million up 26.0% on pcp, with strong growth in all product categories and in most regions.
• Freight costs were up $2.7 million impacting product margins by 5.8% and Operating expenses up 12.6% on pcp, or up 2.5% compared to the 1H 2020 half year.
• EBITDA was down 30.3% to $6.0 million, compared to $8.7 million for the corresponding period last year, reflecting the elevated freight costs and incurred in the period
• Earnings per share (‘EPS’) was down 1.59 cents to 2.26 cents compared to 3.85 cents for the same period last year.
• Strong cash and no debt with Investment on research and development continuing.
• The strategic restructure of the Brazilian operations and fully operational in January 2022.
• Interim fully franked ordinary dividend maintained at 1.50 cents per share.

but yes i agree i am not expecting the famed V-shaped recovery here , the plus side is SDI are living within their means ALTHOUGH if the harsh times linger , and freight costs can be persistent , so half-expect the future divs to be under pressure

 

[galumay]

Identical paste of revenue and earnings to EGN !??!

Whoops!! TOO many reports open today.

 

[divs4ever]

Trading Update with record sales expected for FY22
MELBOURNE, Australia - SDI Limited (ASX: SDI), a leading dental technology company that
conducts research and development, manufacturing, and distribution of specialty dental
materials, today announced that sales for the twelve months ending 30 June 2022 are
estimated to increase 16% to approximately $95.0 million, compared to the prior
corresponding period of $81.6 million (FY21).
The company estimates that after tax-profit, for the twelve months ending 30 June 2022, will
be within the range of $7.0 million to $7.5 million, a decrease of 16% to 22% compared to
financial year 2021 of $8.9 million.
Commenting on the trading update Chief Executive Officer Samantha Cheetham said:
“We are thrilled to announce that FY22 will be a record sales year for SDI, with an estimated
$95 million of sales for the year. The strong growth momentum we achieved in the 1H22
continued throughout the 2H22, with all product areas growing strongly across all regions.
“Freight costs remain an ongoing headwind for the group, as with many other companies,
impacting the bottom line with an expected net profit of $7.0-$7.5 million for FY22. Despite
this, we remain committed to our strategy of prioritising customer service and, whilst we have
incurred additional freight costs to ensure supply, we are confident that our strategy has led to
increased market share underpinning this record sales result, and best positions SDI for future
growth.”
The FY22 result is due to be released on Friday 26 August 2022.
This announcement has been approved for release by the Board of Directors.

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( DYOR )

i hold SDI

 

[JohnDe]

Dividends are decent, but share price is a plodder.

 

[divs4ever]

bought mine in January 2018 @ 45 cents

DIVIDEND TYPE	DIVIDEND AMOUNT ($)	FRANKED	EX-DIV DATE	PAY DATE
Interim	0.015	100.00%	07/04/2022	22/04/2022
Final	0.017	100.00%	03/09/2021	20/09/2021
Interim	0.015	100.00%	08/04/2021	23/04/2021
Final	0.005	100.00%	04/09/2020	21/09/2020
Interim	0.014	100.00%	02/04/2020	17/04/2020
Final	0.015	100.00%	05/09/2019	20/09/2019
Interim	0.022	100.00%	28/03/2019	12/04/2019
Final	0.014	100.00%	06/09/2018	21/09/2018
Interim	0.011	100.00%	22/03/2018	06/04/2018
Final	0.013	100.00%	07/09/2017	22/09/2017
Interim	0.010	100.00%	23/03/2017	07/04/2017

one of my few healthcare plays

a tough sector to find value AND returns

 

[JohnDe]

bought mine in January 2018 @ 45 cents

DIVIDEND TYPE	DIVIDEND AMOUNT ($)	FRANKED	EX-DIV DATE	PAY DATE
Interim	0.015	100.00%	07/04/2022	22/04/2022
Final	0.017	100.00%	03/09/2021	20/09/2021
Interim	0.015	100.00%	08/04/2021	23/04/2021
Final	0.005	100.00%	04/09/2020	21/09/2020
Interim	0.014	100.00%	02/04/2020	17/04/2020
Final	0.015	100.00%	05/09/2019	20/09/2019
Interim	0.022	100.00%	28/03/2019	12/04/2019
Final	0.014	100.00%	06/09/2018	21/09/2018
Interim	0.011	100.00%	22/03/2018	06/04/2018
Final	0.013	100.00%	07/09/2017	22/09/2017
Interim	0.010	100.00%	23/03/2017	07/04/2017

one of my few healthcare plays

a tough sector to find value AND returns

$0.35 increase over 4 years. I also hold at a profit, I like the company but still a plodder.

 

[divs4ever]

yeah but i like SOME plodders , to just throw out fairly regular divs

evens out the volatile stocks ( and their patchy divs )

 

[JohnDe]

yeah but i like SOME plodders , to just throw out fairly regular divs

evens out the volatile stocks ( and their patchy divs )

You should have a look at DDR. Great dividends, and the company is growing strong.

 

[divs4ever]

You should have a look at DDR. Great dividends, and the company is growing strong.

always seem to look at it the wrong time ( when the numbers don't crunch attractively ) the last time i went stalking with intent i ended up buying RFF instead ( i was chasing 3 monthly div. payers at the time )

however there should be further in this downturn maybe this time

cheers

 

[galumay]

SDI FY 2022 results out and my commentary for the first half is basically my thoughts on the full year!

H1 2022, SDI showing the same results as many businesses we hold, increased revenue, big decrease in earnings, negative cash flows, all blamed on a combination of covid, supply restraints and labour inflation. I think its going to be a year or more before we see if there were actually structural issues with some of these businesses, or if they bounce back and recover.

Interesting that although they increased the divvy this year its still only just over 50% payout ratio.

 

[JohnDe]

New purchase -

Purchase of new 6-acre site to support long term strategic planning

MELBOURNE, Australia - SDI Limited (ASX: SDI), a leading dental technology company that conducts research and development, manufacturing, and distribution of specialty dental materials, is pleased to announce the purchase of a 6-acre site to support the long-term
strategic plan for the Group and in the short-term adding important warehouse capacity.
This strategic acquisition will ensure that the Company will increase its operational efficiencies and have excess capacity for future growth.

The new site, a short 7 km distance from SDI’s current site, comprises a 4,000 m2 warehouse on 2.8 acres, and a tenant occupying 3.2 acres of 6-acre site. The tenant has a 1-year lease term remaining and a 5-year option. The purchase contract is on 60 days settlement terms. SDI will fund the $17.8 million purchase via secured bank debt. ...

 

[galumay]

A better year from SDI and signs that they have managed to weather the storms of the last couple of years. A fairly soft FY2023 result, debt continues to be a concern, used for the purchase of land for new site. Will need to continue watching closely. Level of conviction now low. One thing of note is the comment that as Amalgam has become increasingly a smaller part of the overall market, SDI's share has become larger as competitors simply withdraw from producing it. That's an interesting thing to consider with dying markets, can be an advantage if you have a way to leverage. I suspect because other players are much bigger businesses they have just dumped Amalgam products once they dropped to an irrelevant size in the overall business.