Dutech is quite an interesting company that is worth taking a look into. Its share price has been relatively muted for many years and has only begun taking off after the 2015 Annual Report that was published on 27 February 2016. Dutech’s business operates in two segments, one being ‘High Security’ and the other being ‘Business Solutions’. You might be interested to know that they are the ones who manufacture ATM machines for banks! Let’s dive right into the analysis!

Strengths

  1. Sales in USD, Cost in RMB
  2. Healthy Financials
  3. Alignment of Shareholders’ Interest
  4. Supplier To A Growing Market

Sales in USD, Cost in RMB

With cost being largely denominated in RMB and sale made in USD, Dutech stands to enjoy the extra benefits from the forex differences. Dutech is able to keep cost low and sell for as much as they can! If you think this doesn’t mean much, consider this. …