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1. Company Snapshot

1.a. Company Description

DKSH Holding AG provides various market expansion services in Thailand, Greater China, Malaysia, Singapore, rest of the Asia Pacific, and internationally.The company offers sourcing, marketing, sales, distribution, and after-sales services.It operates through four segments: Healthcare, Consumer Goods, Performance Materials, and Technology.


The Healthcare segment provides various services, such as registration, regulatory, market entry studies, importation, customs clearance, marketing and sales, physical distribution, invoicing, and cash collection services for ethical pharmaceuticals, consumer health, and over-the-counter health products, as well as medical devices.The Consumer Goods segment offers a range of services, including product feasibility studies, registration, importation, customs clearance, marketing and merchandising, sales, warehousing, physical distribution, invoicing, cash collection, and after-sales services for fast moving consumer goods, food services, luxury goods, and fashion and lifestyle products, as well as hair and skin cosmetics.The Performance Materials segment sources, markets, and distributes a range of specialty chemicals and ingredients for the pharmaceutical, personal care, food and beverage, and industrial applications, as well as provides market expansion services for performance materials.


The Technology segment offers market expansion services comprising a range of capital investment goods and analytical instruments in the areas of infrastructure, industrial materials and supplies, precision and textile machinery, semiconductors, photovoltaic and electronics, agriculture, and hospitality, as well as specialized industrial applications.The company was founded in 1865 and is based in Zurich, Switzerland.

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1.b. Last Insights on DKSH

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1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.40%)

6. Segments

Healthcare

Expected Growth: 4.0%

The healthcare segment is expected to outperform the global revenue growth hypothesis due to the increasing demand for healthcare services and products, driven by an aging population and rising healthcare expenditure. DKSH's strong presence in emerging markets and its expertise in healthcare distribution will drive growth.

Consumer Goods

Expected Growth: 3.2%

The consumer goods segment is expected to grow at a slightly lower rate than the global revenue growth hypothesis due to intense competition and changing consumer trends. However, DKSH's strong distribution network and supplier relationships will enable it to maintain a stable growth trajectory.

Performance Materials

Expected Growth: 3.8%

The performance materials segment is expected to outperform the global revenue growth hypothesis due to the increasing demand for specialty chemicals and ingredients from industrial customers. DKSH's expertise in this area and its strong supplier relationships will drive growth.

Technology

Expected Growth: 4.2%

The technology segment is expected to outperform the global revenue growth hypothesis due to the increasing demand for technology products and solutions. DKSH's expertise in technology distribution and its strong supplier relationships will drive growth.

Other / Elimination

Expected Growth: 3.4%

The other/elimination segment is expected to grow in line with the global revenue growth hypothesis, as it includes various smaller business segments and eliminations. The growth rate is assumed to be in line with the overall company growth rate.

7. Detailed Products

Consumer Goods

DKSH Holding AG provides a wide range of consumer goods, including food, beverages, and personal care products, to retailers and distributors across Asia.

Healthcare

DKSH offers a portfolio of pharmaceuticals, medical devices, and healthcare equipment to hospitals, clinics, and pharmacies across Asia.

Performance Materials

DKSH provides a range of specialty chemicals, ingredients, and raw materials to manufacturers in the coatings, construction, and industrial sectors.

Technology

DKSH offers a range of technology products, including IT solutions, telecommunications equipment, and industrial automation systems, to businesses across Asia.

8. DKSH Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

DKSH Holding AG operates in a market with moderate threat of substitutes. While there are some alternatives available, they are not significantly cheaper or better, limiting the threat.

Bargaining Power Of Customers

DKSH Holding AG's customers have limited bargaining power due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

DKSH Holding AG's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers, but the company's size and scale also give it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low for DKSH Holding AG due to the high barriers to entry in the market, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The market in which DKSH Holding AG operates is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.35%
Debt Cost 5.55%
Equity Weight 69.65%
Equity Cost 5.80%
WACC 5.72%
Leverage 43.57%

11. Quality Control: DKSH Holding AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bouygues

A-Score: 6.9/10

Value: 8.2

Growth: 5.3

Quality: 3.7

Yield: 8.1

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

Stock-Card
Ipsos

A-Score: 5.6/10

Value: 7.8

Growth: 5.3

Quality: 6.7

Yield: 6.2

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Bureau Veritas

A-Score: 5.5/10

Value: 3.7

Growth: 5.0

Quality: 6.0

Yield: 5.6

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Danieli

A-Score: 5.3/10

Value: 7.0

Growth: 3.4

Quality: 5.2

Yield: 2.5

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

Stock-Card
DKSH Holding

A-Score: 5.0/10

Value: 6.2

Growth: 3.3

Quality: 4.5

Yield: 6.9

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

Stock-Card
SGS

A-Score: 4.8/10

Value: 1.6

Growth: 3.2

Quality: 5.5

Yield: 6.9

Momentum: 2.0

Volatility: 9.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

57.0$

Current Price

57$

Potential

-0.00%

Expected Cash-Flows