Announcement • Apr 30
Dancomech Holdings Berhad, Annual General Meeting, Jun 11, 2026 Dancomech Holdings Berhad, Annual General Meeting, Jun 11, 2026, at 10:00 Singapore Standard Time. Location: ballroom v main wing, tropicana golf & country resort, jalan kelab tropicana, 47410 petaling jaya, selangor darul ehsan, Malaysia Upcoming Dividend • Mar 20
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 24 March 2026. Payment date: 10 April 2026. Payout ratio is a comfortable 54% and this is well supported by cash flows. Trailing yield: 5.3%. Lower than top quartile of Malaysian dividend payers (5.5%). Higher than average of industry peers (3.5%). Reported Earnings • Mar 02
Full year 2025 earnings released: EPS: RM0.037 (vs RM0.052 in FY 2024) Full year 2025 results: EPS: RM0.037 (down from RM0.052 in FY 2024). Revenue: RM183.6m (down 18% from FY 2024). Net income: RM16.4m (down 29% from FY 2024). Profit margin: 8.9% (down from 10% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 6% per year. Declared Dividend • Mar 02
Final dividend of RM0.013 announced Shareholders will receive a dividend of RM0.013. Ex-date: 24th March 2026 Payment date: 10th April 2026 Dividend yield will be 5.3%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 5.8% per year over the past 9 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 36% to shift the payout ratio to a potentially unsustainable range, which is more than the 6.5% EPS decline seen over the last 5 years. Reported Earnings • Nov 23
Third quarter 2025 earnings released: EPS: RM0.01 (vs RM0.01 in 3Q 2024) Third quarter 2025 results: EPS: RM0.01 (in line with 3Q 2024). Revenue: RM45.1m (down 20% from 3Q 2024). Net income: RM4.21m (down 9.1% from 3Q 2024). Profit margin: 9.3% (up from 8.2% in 3Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has remained flat. Declared Dividend • Aug 23
First half dividend of RM0.0075 announced Shareholders will receive a dividend of RM0.0075. Ex-date: 8th September 2025 Payment date: 26th September 2025 Dividend yield will be 6.1%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (55% earnings payout ratio) and cash flows (37% cash payout ratio). The dividend has increased by an average of 5.8% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Reported Earnings • Aug 22
Second quarter 2025 earnings released: EPS: RM0.009 (vs RM0.013 in 2Q 2024) Second quarter 2025 results: EPS: RM0.009 (down from RM0.013 in 2Q 2024). Revenue: RM50.2m (down 10% from 2Q 2024). Net income: RM3.86m (down 34% from 2Q 2024). Profit margin: 7.7% (down from 10% in 2Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 1% per year. Reported Earnings • May 30
First quarter 2025 earnings released: EPS: RM0.007 (vs RM0.01 in 1Q 2024) First quarter 2025 results: EPS: RM0.007 (down from RM0.01 in 1Q 2024). Revenue: RM43.8m (down 11% from 1Q 2024). Net income: RM3.01m (down 34% from 1Q 2024). Profit margin: 6.9% (down from 9.3% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 10.0% growth forecast for the Trade Distributors industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has fallen by 2% per year. Announcement • Apr 29
Dancomech Holdings Berhad, Annual General Meeting, May 29, 2025 Dancomech Holdings Berhad, Annual General Meeting, May 29, 2025, at 10:00 Singapore Standard Time. Location: greens iii sports wing, tropicana golf & country resort, jalan kelab tropicana, 47410 petaling jaya, selangor darul ehsan, Malaysia Declared Dividend • Mar 03
Final dividend of RM0.018 announced Shareholders will receive a dividend of RM0.018. Ex-date: 20th March 2025 Payment date: 9th April 2025 Dividend yield will be 5.7%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is well covered by both earnings (47% earnings payout ratio) and cash flows (42% cash payout ratio). The dividend has increased by an average of 5.2% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 9.3% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 01
Full year 2024 earnings released: EPS: RM0.053 (vs RM0.047 in FY 2023) Full year 2024 results: EPS: RM0.053 (up from RM0.047 in FY 2023). Revenue: RM222.7m (up 5.1% from FY 2023). Net income: RM23.3m (up 11% from FY 2023). Profit margin: 11% (in line with FY 2023). Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 3.3% growth forecast for the Trade Distributors industry in Asia. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 4% per year. Buy Or Sell Opportunity • Feb 25
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.5% to RM0.41. The fair value is estimated to be RM0.52, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.7% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 28% in 2 years. Earnings are forecast to grow by 18% in the next 2 years. Reported Earnings • Nov 26
Third quarter 2024 earnings released: EPS: RM0.01 (vs RM0.013 in 3Q 2023) Third quarter 2024 results: EPS: RM0.01 (down from RM0.013 in 3Q 2023). Revenue: RM56.6m (up 2.4% from 3Q 2023). Net income: RM4.63m (down 20% from 3Q 2023). Profit margin: 8.2% (down from 11% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Trade Distributors industry in Asia. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Declared Dividend • Aug 24
First half dividend of RM0.0075 announced Shareholders will receive a dividend of RM0.0075. Ex-date: 5th September 2024 Payment date: 23rd September 2024 Dividend yield will be 5.0%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (46% earnings payout ratio) and cash flows (78% cash payout ratio). The dividend has increased by an average of 5.2% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 23% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Aug 23
Price target increased by 9.5% to RM0.57 Up from RM0.53, the current price target is an average from 2 analysts. New target price is 28% above last closing price of RM0.45. Stock is up 7.1% over the past year. The company is forecast to post earnings per share of RM0.054 for next year compared to RM0.047 last year. Reported Earnings • Aug 23
Second quarter 2024 earnings released: EPS: RM0.013 (vs RM0.012 in 2Q 2023) Second quarter 2024 results: EPS: RM0.013 (up from RM0.012 in 2Q 2023). Revenue: RM55.9m (up 1.8% from 2Q 2023). Net income: RM5.81m (up 13% from 2Q 2023). Profit margin: 10% (up from 9.4% in 2Q 2023). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Trade Distributors industry in Asia. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 7% per year. Reported Earnings • Jun 04
First quarter 2024 earnings released: EPS: RM0.01 (vs RM0.009 in 1Q 2023) First quarter 2024 results: EPS: RM0.01 (up from RM0.009 in 1Q 2023). Revenue: RM49.1m (down 1.9% from 1Q 2023). Net income: RM4.57m (up 13% from 1Q 2023). Profit margin: 9.3% (up from 8.1% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Trade Distributors industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 4% per year and the company’s share price has also fallen by 4% per year. Announcement • Apr 30
Dancomech Holdings Berhad, Annual General Meeting, May 30, 2024 Dancomech Holdings Berhad, Annual General Meeting, May 30, 2024, at 14:00 Singapore Standard Time. Location: No.19,Jalan Pelukis U1/46, Seksyen U1,40150 Shah Alam,Selangor Darul Ehsan Selangor Darul Ehsan Malaysia Agenda: To receive the Audited Financial Statements for the financial year ended 31 December 2023 and the Reports of Directors and Auditors thereon; to consider the re-election of directors who are retiring by rotation pursuant to the constitution of the company; to consider the re-appointment of TGS TW PLT as Auditors of the Company and to authorise the Directors to fix their remuneration; and to consider other matters. Upcoming Dividend • Mar 12
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 19 March 2024. Payment date: 04 April 2024. Payout ratio is a comfortable 47% and the cash payout ratio is 88%. Trailing yield: 4.9%. Within top quartile of Malaysian dividend payers (4.8%). Higher than average of industry peers (1.7%). Declared Dividend • Feb 28
Final dividend of RM0.015 announced Shareholders will receive a dividend of RM0.015. Ex-date: 19th March 2024 Payment date: 4th April 2024 Dividend yield will be 4.8%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (41% earnings payout ratio) and cash flows (86% cash payout ratio). The dividend has increased by an average of 4.2% per year over the past 7 years. However, payments have been volatile during that time. EPS is expected to grow by 32% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 27
Full year 2023 earnings released: EPS: RM0.047 (vs RM0.044 in FY 2022) Full year 2023 results: EPS: RM0.047 (up from RM0.044 in FY 2022). Revenue: RM211.8m (flat on FY 2022). Net income: RM21.0m (up 15% from FY 2022). Profit margin: 9.9% (up from 8.6% in FY 2022). Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 5.6% growth forecast for the Trade Distributors industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 11% per year, which means it is performing significantly worse than earnings. Buy Or Sell Opportunity • Feb 13
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 3.4% to RM0.45. The fair value is estimated to be RM0.37, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has declined by 4.8%. Reported Earnings • Nov 30
Third quarter 2023 earnings released: EPS: RM0.013 (vs RM0.011 in 3Q 2022) Third quarter 2023 results: EPS: RM0.013 (up from RM0.011 in 3Q 2022). Revenue: RM55.2m (down 2.2% from 3Q 2022). Net income: RM5.77m (up 19% from 3Q 2022). Profit margin: 11% (up from 8.6% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Trade Distributors industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: RM0.012 (vs RM0.009 in 2Q 2022) Second quarter 2023 results: EPS: RM0.012 (up from RM0.009 in 2Q 2022). Revenue: RM54.9m (up 16% from 2Q 2022). Net income: RM5.17m (up 37% from 2Q 2022). Profit margin: 9.4% (up from 8.0% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 1.8% growth forecast for the Trade Distributors industry in Asia. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Announcement • Aug 25
Dancomech Holdings Berhad Declares First Single-Tier Dividend for the Financial Year Ending 31 December 2023, Payable on 26 September 2023 Dancomech Holdings Berhad declared First single-tier dividend of 0.75 sen per ordinary share in respect of the financial year ending 31 December 2023. Payable on 26 September 2023. Ex-Date is on 08 Sep 2023. Entitlement date is on 11 Sep 2023. Reported Earnings • Apr 30
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: RM0.044. Revenue: RM212.0m (up 3.2% from FY 2021). Net income: RM18.2m (up 9.7% from FY 2021). Profit margin: 8.6% (up from 8.1% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 6.0%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, while revenues in the Trade Distributors industry in Malaysia are expected to remain flat. Upcoming Dividend • Mar 09
Upcoming dividend of RM0.013 per share at 4.2% yield Eligible shareholders must have bought the stock before 16 March 2023. Payment date: 31 March 2023. Payout ratio is a comfortable 45% but the company is paying out more than the cash it is generating. Trailing yield: 4.2%. Lower than top quartile of Malaysian dividend payers (5.2%). Higher than average of industry peers (1.5%). Reported Earnings • Feb 28
Full year 2022 earnings released: EPS: RM0.044 (vs RM0.052 in FY 2021) Full year 2022 results: EPS: RM0.044. Revenue: RM212.0m (up 3.2% from FY 2021). Net income: RM18.2m (up 9.7% from FY 2021). Profit margin: 8.6% (up from 8.1% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.7% p.a. on average during the next 2 years, while revenues in the Trade Distributors industry in Malaysia are expected to remain flat. Reported Earnings • Nov 24
Third quarter 2022 earnings released: EPS: RM0.011 (vs RM0.011 in 3Q 2021) Third quarter 2022 results: EPS: RM0.011 (in line with 3Q 2021). Revenue: RM56.5m (up 28% from 3Q 2021). Net income: RM4.85m (up 32% from 3Q 2021). Profit margin: 8.6% (up from 8.3% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Trade Distributors industry in Malaysia. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 5 highly experienced directors. Independent Non-Executive Director Sharon Lee was the last director to join the board, commencing their role in 2016. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Aug 25
Dancomech Holdings Berhad Announces First Interim Single-Tier Dividend in Respect of the Financial Year Ended December 31, 2022, Payable on September 26, 2022 Dancomech Holdings Berhad announced that first interim single-tier dividend of 0.75 sen per ordinary share in respect of the financial year ended December 31, 2022. Ex-date is September 8, 2022. Entitlement date is September 9, 2022. Payment date is September 26, 2022. Reported Earnings • Aug 25
Second quarter 2022 earnings released: EPS: RM0.009 (vs RM0.014 in 2Q 2021) Second quarter 2022 results: EPS: RM0.009 (down from RM0.014 in 2Q 2021). Revenue: RM47.4m (down 15% from 2Q 2021). Net income: RM3.78m (down 16% from 2Q 2021). Profit margin: 8.0% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • May 26
First quarter 2022 earnings released: EPS: RM0.009 (vs RM0.009 in 1Q 2021) First quarter 2022 results: EPS: RM0.009 (vs RM0.009 in 1Q 2021). Revenue: RM47.1m (up 15% from 1Q 2021). Net income: RM3.03m (up 5.3% from 1Q 2021). Profit margin: 6.4% (down from 7.0% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. Independent Non-Executive Director Sharon Lee was the last director to join the board, commencing their role in 2016. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 26
Dancomech Holdings Berhad, Annual General Meeting, May 24, 2022 Dancomech Holdings Berhad, Annual General Meeting, May 24, 2022, at 14:00 China Standard Time. Agenda: To receive the Audited Financial Statements for the financial year ended 31 December 2021 and the Reports of Directors and Auditors thereon; to re-appoint Grant Thornton Malaysia PLT as Auditors of the Company and to authorise the Directors to fix their remuneration; and to consider other matters. Announcement • Mar 31
Dancomech Holdings Berhad Announces Changes in Composition of Board Committees Dancomech Holdings Berhad announced Changes in the Composition of the Board Committees as follows:- Audit and Risk Management Committee: 1. Mr. Gong Wooi Teik, Senior Independent Non-Executive Director (Chairman)2. Mr. Lee Chen Yow, Independent Non-Executive Director (Member) 3. Ms Sharon Lee Ching Yee, Independent Non-Executive Director (Member); Nomination Committee: 1. Mr. Gong Wooi Teik, Senior Independent Non-Executive Director (Chairman) 2. Mr. Lee Chen Yow, Independent Non-Executive Director (Member) 3. Ms Sharon Lee Ching Yee, Independent Non-Executive Director (Member) and Remuneration Committee: 1. Mr. Lee Chen Yow, Independent Non-Executive Director (Chairman) 2. Ms Sharon Lee Ching Yee, Independent Non-Executive Director (Member) 3. Mr. Gong Wooi Teik, Senior Independent Non-Executive Director (Member). Upcoming Dividend • Mar 10
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 17 March 2022. Payment date: 31 March 2022. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 4.2%. Lower than top quartile of Malaysian dividend payers (4.8%). Higher than average of industry peers (2.3%). Reported Earnings • Feb 27
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: RM0.052 (vs RM0.052 in FY 2020). Revenue: RM205.4m (up 73% from FY 2020). Net income: RM16.6m (up 5.1% from FY 2020). Profit margin: 8.1% (down from 13% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 12%. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 2% per year. Announcement • Feb 26
Dancomech Holdings Berhad Declares Second Single-Tier Dividend for the Financial Year Ended 31 December 2021, Payable on 31 Mar 2022 Dancomech Holdings Berhad has declared second single-tier dividend of 1.25 sen per ordinary share in respect of the financial year ended 31 December 2021. The dividend will be paid on 31 Mar 2022. Entitlement date is 22 March 2021. Ex-Date is March 17, 2022. Reported Earnings • Nov 19
Third quarter 2021 earnings released: EPS RM0.011 (vs RM0.019 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: RM44.2m (up 20% from 3Q 2020). Net income: RM3.66m (down 35% from 3Q 2020). Profit margin: 8.3% (down from 15% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 3% per year. Reported Earnings • Sep 07
Second quarter 2021 earnings released: EPS RM0.014 (vs RM0.01 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: RM56.0m (up 180% from 2Q 2020). Net income: RM4.50m (up 42% from 2Q 2020). Profit margin: 8.0% (down from 16% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 8% per year. Reported Earnings • May 27
First quarter 2021 earnings released: EPS RM0.009 (vs RM0.01 in 1Q 2020) The company reported a decent first quarter result with improved revenues, although earnings and profit margins were weaker. First quarter 2021 results: Revenue: RM41.0m (up 108% from 1Q 2020). Net income: RM2.88m (down 7.2% from 1Q 2020). Profit margin: 7.0% (down from 16% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Mar 12
Upcoming Dividend of RM0.013 Per Share Will be paid on the 6th of April to those who are registered shareholders by the 19th of March. The trailing yield of 3.0% is below the top quartile of Malaysian dividend payers (4.2%), but it is higher than industry peers (2.5%). Reported Earnings • Mar 06
Full year 2020 earnings released: EPS RM0.054 (vs RM0.047 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: RM118.8m (up 47% from FY 2019). Net income: RM16.3m (up 15% from FY 2019). Profit margin: 14% (down from 18% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Mar 06
Revenue beats expectations Revenue exceeded analyst estimates by 12%. Over the next year, revenue is forecast to grow 21%, compared to a 14% growth forecast for the Trade Distributors industry in Malaysia. Is New 90 Day High Low • Feb 17
New 90-day high: RM0.73 The company is up 17% from its price of RM0.63 on 19 November 2020. The Malaysian market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Trade Distributors industry, which is up 10.0% over the same period. Announcement • Dec 30
Dancomech Holdings Berhad (KLSE:DANCO) entered into a share purchase agreement to acquire 55% stake in UTC Engineering Sdn. Bhd. from Yew Teik Choon and Yew Seok Li for MYR 2.8 million. Dancomech Holdings Berhad (KLSE:DANCO) entered into a share purchase agreement to acquire 55% stake in UTC Engineering Sdn. Bhd. from Yew Teik Choon and Yew Seok Li for MYR 2.8 million on December 28, 2020. Under the terms of transaction Dancomech will acquire 0.09 million share of UTC Engineering. The Purchase Consideration shall be satisfied entirely by cash in the following manner: (i) On the completion date, MYR 0.55 million shall be paid by the Company to the Vendors; and (ii) The balance of MYR 2.2 million shall be paid by Dancomech to it’s solicitors, i.e. Messrs Enolil Loo, who shall place the amount into a fixed deposit account and hold the same as stakeholders, and to release the same to the Vendors by way of deferred payment, as follows: (a) For the period from the completion date to December 31, 2021, and each of the financial years ending 31 December 2022, 2023, 2024, 2025 and 2026 (“Periods of Accumulated Guaranteed PAT”), the Dancomech’s solicitors shall, within 7 days upon receiving an instruction from the Dancomech release the Yearly Payment from the Deposited Amount (including any interest accrued thereon) to the Vendors. (b) Upon expiry of the Periods of Accumulated Guaranteed PAT, the Dancomech's solicitors shall, within 7 days upon receiving an instruction from the Company,return to the Company any balance amount remaining in the Deposited Amount. “Yearly Payment” shall refer to the sum calculated based on 44% of the audited profit after tax achieved by UTC for the relevant financial period/year within the Periods of Accumulated Guaranteed PAT. In the event that UTC incurs an audited loss after tax in any of the Periods of Accumulated Guaranteed PAT, the Vendors shall pay in cash the amount of audited loss after tax to UTC (“Loss Payment”). The Yearly Payment or the Loss Payment, as the case may be, is to be paid within 14 calendar days upon the availability of the audited financial statements of UTC for the respective financial period/years. For the avoidance of doubt, the Company’s obligation for the Yearly Payment shall expire/have been fulfilled upon the Balance Purchase Consideration being fully paid or upon the expiry of the Periods of Accumulated Guaranteed PAT, whichever is the earlier. Similarly, the Vendors’ obligation for the Accumulated Guaranteed PAT and Loss Payment shall expire/have been fulfilled upon the Accumulated Guaranteed PAT being met or upon the expiry of the Periods of Accumulated Guaranteed PAT, whichever is the earlier. The Purchase Consideration will be funded via the internally-generated funds of the Dancomech Group.
Yew Teik Choon and Yew Seok Li holds 90% and 10% of the share capital in UTC Engineering respectively. Upon completion, Yew Teik Choon and Dancomech will hold 45% and 55% of the share capital in UTC Engineering respectively. For the year ended March 31, 2020, UTC reported a net loss of MYR 0.27 million and a net assets of MYR 1.13 million.
The completion of the sale and purchase of the Sale Shares is conditional upon the following conditions being satisfied within a period of three (3) months from the date of the SAA or within such further period as may be mutually agreed upon by the parties in writing, namely: (i) the written approval or consent of the financiers of UTC (if any) in respect of the change in shareholdings contemplated under the SAA in accordance with the terms of any banking or financing facilities granted to UTC; (ii) the approval or consent of any third party to the sale and purchase of the Sale Shares (if required) in accordance with the terms of any contract or agreement of a material nature entered into between UTC and such third party; (iii) the approval or waiver of any regulatory requirement by any other relevant authorities, if required; and (iv) resolution of any issues arising from the findings of the due diligence (conduActed by theCompany and communicated to the Vendors) to the reasonable satisfaction of the Company. The transaction is expected to be completed within the first quarter of 2021. The Proposed Acquisition will not have any effects on the share capital, substantial shareholders’ shareholdings, and convertible securities (i.e. warrants) of Dancomech as it is satisfied entirely by cash. The transaction is expected to contribute positively to the earnings, EPS and net assets of the Dancomech Group for the financial year ending December 31, 2021 onwards. Is New 90 Day High Low • Nov 24
New 90-day high: RM0.70 The company is up 28% from its price of RM0.55 on 26 August 2020. The Malaysian market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Trade Distributors industry, which is up 7.0% over the same period. Is New 90 Day High Low • Oct 13
New 90-day high: RM0.63 The company is up 59% from its price of RM0.40 on 15 July 2020. The Malaysian market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Trade Distributors industry, which is up 17% over the same period. Announcement • Aug 04
Dancomech Holdings Berhad (KLSE:DANCO) completed the acquisition of 70% stake in MTL Engineering Sdn Bhd from Tan Moon Chang, Heah Choon Kwong, Mun Peng. Dancomech Holdings Berhad (KLSE:DANCO) entered into a share purchase agreement to acquire 70% stake in MTL Engineering Sdn Bhd from Tan Moon Chang, Heah Choon Kwong, Mun Peng for MYR 23.8 million on March 2, 2020. Under the terms of consideration, Dancomech will acquire 1.4 million of shares and will pay cash MYR 2.4 million as way of deposit at agreement and MYR 21.4 million on completion. Parties also agree that adjusted net consolidated asset of MTL group shall be less than MYR 30.1 million, Dancomech Holdings shall have the right to reduce purchase consideration. In related transaction, Dancomech proposes to diversify activities of Dancomech group to include the business of producing metal stamping parts and components. Post completion, Dancomech will hold 70% whereas Tan Moon will hold 15%, Heah Choon Kwong will hold 9%, and Mun Peng hold 6% in MTL. The transaction will be funded via internally generated funds. There are no liabilities assumed by Dancomech and there is no additional financial commitment required in respect of transaction. Dancomech shareholders meeting will be held on July 15, 2020.
Transaction is subject to approval of shareholders of Dancomech and other regulatory authorities or parties if required. Transaction is expected to complete within second quarter of 2020. As of April 23, 2020, the period to satisfy the conditions precedent is extended to August 1, 2020. Dancomech Board recommends shareholders to vote in favour of the transaction.
Transaction does not have any effect on the share capital and substantial shareholders of Dancomech and convertible securities. Transaction will increase gearing of Dancomech from 0.02 to 0.11 times and expected to start contributing earning per share and net assets for year December 31, 2020.
Dancomech Holdings Berhad (KLSE:DANCO) completed the acquisition of 70% stake in MTL Engineering Sdn Bhd from Tan Moon Chang, Heah Choon Kwong, Mun Peng on August 3, 2020. Post transaction, MTL has become a 70%-owned subsidiary of Dancomech. 
