SDI - SDI Limited

[divs4ever]

they have just dumped Amalgam products once they dropped to an irrelevant size in the overall business.

that is a shame , because i used to joke they were my primary silver exposure , before BHP loaded me up with S32

but realistically i try for healthcare sector exposure without the complex regulation of the FDA/TGA and long expensive safety trials ( ii still hold PSQ and held ONT up to the take-over )

 

[divs4ever]

Trading Update

MELBOURNE, Australia – SDI Limited (ASX: SDI) today announced that preliminary unaudited sales in Australian Dollars, for the six months ending 31 December 2023 increased by 3% to $52.1 million compared to $50.5 million for the corresponding period last year (pcp), a record first half performance.

This result reflected the strong increase in European sales, offset by the continued reduction in Amalgam sales, down 12% on pcp. Additionally, during the first six months of the FY24 financial year, product margins increased by 5%, reflecting further improvements in logistic costs and regional market and product mix.

Finally, operating expenses continue to be well managed, despite continued inflationary pressures.
For the six months ending 31 December 2023 net profit after tax is expected to be in the range of $2.8 million to $3.4 million compared to $2.7 million for the corresponding period last year.
The Half Year results (Appendix 4D) will be released on February 27, 2024.

This announcement has been authorised by the Board of Directors of SDI Limited.

i hold SDI

a bottom drawer stock for me ( buying at 45 cents in 2018 )

 

[galumay]

Nice little update! Not so good for you @divs4ever - further erosion of your silver play!

 

[divs4ever]

Nice little update! Not so good for you @divs4ever - further erosion of your silver play!

well silver ( in the stock market ) hasn't been so kind to me much like nickel ( with a couple of exceptions )

not so happy to see them focusing on Europe either ( which i consider is a failing state )

but maybe the French peasants will start something again

 

[galumay]

Pretty solid trading update for SDI this morning, pretty well in line with expectations, but still good to see the ink on the paper.

 

[galumay]

SDI with a good FY 2024, as expected. NPAT a bit stronger than guidance. Would have liked to see them reduce/stop dividends to help finance the relocation, so will have to watch the debt carefully from here.

 

[Country Lad]

Not much interest here other than from @galumay. I has it as a break at 96 and Mr Market seems to like it now as well.

It has overcome the virtual loss of amalgam use these days (now only around 15% of sales, SDI has shifted focus to invest heavily in its non-amalgam segments, aesthetics and whitening brands some years ago. It is now a manufacturer and supplier of a wide range of dental products with increasing gross margins. Sounds like a good recovery story and technically has broken out hopefully into a good uptrend.

Noticed the Bid side with 590,000 in 2 lots at 115 at the moment which is quite unusual. There was a higher than average turnover over late November as well. Will consider topping up.

 

[galumay]

Yep, its a good little business, they have always had a simple & effective strategy to deal with the slow decline of amalgam, its a good example of the advantage of knowing you have a structurally declining product with a very long lead time for developing and marketing a range of replacements. You can see the success of the strategy in the financials over the last 10 years, steadily growing revenues, continuous dividends, positive earnings, strong balance sheet and healthy free cash flow.

 

[divs4ever]

Yep, its a good little business, they have always had a simple & effective strategy to deal with the slow decline of amalgam, its a good example of the advantage of knowing you have a structurally declining product with a very long lead time for developing and marketing a range of replacements. You can see the success of the strategy in the financials over the last 10 years, steadily growing revenues, continuous dividends, positive earnings, strong balance sheet and healthy free cash flow.

and to think is bought it primarily as a cheeky play on silver prices ( oh ! am i like investing in dentists over all the wonder-drugs and cancer treatments , for my healthcare exposure )

but yes am nicely in front on this one

 

[finicky]

Forgot about this one. Another for the crash list

Not Held

 

[divs4ever]

Forgot about this one. Another for the crash list

Not Held

the problem with a crash list .. is too many places to look and assess your buying price

but sure it is a stock likely to be left behind when the rebound starts

 

[finicky]

Spoiled for choice in a crash @divs4ever. Actually just looked at the fundanental stats for SDI on Commsec summaries and while on my list now I don't think it'll be high up in my priorities. Only moderate/high ROE but I like how the book value keeps rising, the flat share issuance and the uninterrupted dividend. But seems only mildly undervalued to me.

Not Held
Not Buying

 

[divs4ever]

Spoiled for choice in a crash @divs4ever. Actually just looked at the fundanental stats for SDI on Commsec summaries and while on my list now I don't think it'll be high up in my priorities. Only moderate/high ROE but I like how the book value keeps rising, the flat share issuance and the uninterrupted dividend. But seems only mildly undervalued to me.

Not Held
Not Buying

well using March 2020 ( my only experience in anything close to a REAL crash ) as a guide , there were dozens of places to look

and one lesson learned smaller cap stocks weakened in a crash MIGHT become take-over targets ( not a totally bad thing capital gains-wise , but wrecks attempts to balance a portfolio

stocks bought in March/April 2020 included DOW ( a modest gainer ) , ASW ( taken over ) CVF ( taken over ) , CMW ( a massive test of patience ) , APE ,(a very nice multi-bagger ) , SXE (a very nice winner ) and WIC ( taken over )

i bought my SDI in January 2018 @ 45 cents , has been nice div. wise , at my entry price ( which is why i bought in )

DIVIDEND TYPE	DIVIDEND AMOUNT ($)	FRANKED	EX-DIV DATE	PAY DATE
Final	0.019	100.00%	05/09/2024	20/09/2024
Interim	0.015	100.00%	15/04/2024	30/04/2024
Final	0.018	100.00%	07/09/2023	22/09/2023
Interim	0.015	100.00%	13/04/2023	28/04/2023
Final	0.018	100.00%	02/09/2022	19/09/2022
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