SDI (ASX: SDI) – a global leading dental technology company
COMPANY SCOREBOARD
| Pro Plus | Pro | Con Plus | Con |
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ABOUT COMPANY
SDI (SDI) (https://www.sdi.com.au) manufactures and distributes dental restorative materials, whitening systems, and other dental materials. The company exports to over 100 countries globally and has approximately 1.7% of the market as at 2021.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| SDI | 0.845 | 118865530 | 100441372.85 | 7.8/63 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 2149 | 70.60% | 69.35% | 47.86% |
BUSINESS
Below is the company’s past five years performance:
| SDI | 2024 | 2023 | 2022 | 2021 | 2020 |
| Operation Revenue | 111206 | 107855 | 95151 | 81647 | 67374 |
| Cost of Sale | -42168 | -46588 | -42041 | -31396 | -23737 |
| Gross Revenue | 69038 | 61267 | 53110 | 50251 | 43637 |
| Gross Margin | 0.6208 | 0.5680 | 0.5582 | 0.6155 | 0.6477 |
| Overheads | -51150 | -51382 | -43599 | -41211 | -38006 |
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -51150 | -51382 | -43599 | -41211 | -38006 |
| Operation Profit | 17888 | 9885 | 9511 | 9040 | 5631 |
| Other Revenue | -1134 | 2489 | 809 | 2645 | -651 |
| Interest Expense | -1516 | -751 | 14 | -51 | -9 |
| D&A | |||||
| Income Tax | -4817 | -3634 | -2858 | -3267 | -878 |
| Net Profit | 10421 | 7989 | 7476 | 8367 | 4093 |
| NOTES | $3.9m subsidy | $1.1m subsidy |
The company’s sale growth might have peaked in FY24. The inventory increased to $30m! The company had to purchased a new $19m site for storage with a construction and refurnishing cost of $26m and additional equipment of $15m, all from borrowing. That’s $60m investment in warehouse. The benefit won’t be seen until 2028.
The company is likely to generate around $8m net profit at the best for the next year or two, and if they pay 50% in dividend, the share price shouldn’t be more than 80c in order to earn a 5% return pre-franking credit.
SUMMARY
The company’s share price failed to stand above $1 three times in a roll in 2016, 2019, and 2021.