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DJI Dji Holdings

134.50
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Dji Holdings LSE:DJI London Ordinary Share GB00BNBNSF91 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 134.50 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Dji Holdings Share Discussion Threads

Showing 2051 to 2073 of 2350 messages
Chat Pages: 94  93  92  91  90  89  88  87  86  85  84  83  Older
DateSubjectAuthorDiscuss
28/9/2016
22:31
250p xmas

300p listing

350p end q1

could be higher

ayesha4
28/9/2016
21:40
Thanks Toyin for the post

Im a even more positive now and going into the market to increase my holding in the morning

Thanks again

midas 123
28/9/2016
19:47
Although the actual listing may take place early next year, the application for the listing will go in within the next two weeks imo.That should reassure the market.
nurdin
28/9/2016
19:46
I dont think so. They dont want to lose momentum. The company want this listed by Jan 2017.
ayesha4
28/9/2016
19:39
Thanks toyin for posting the article. "I am told the Nasdaq listing is now likely early in the new year." stated so I would say that could easily be Feb or early March. Nasdaq listing will come in time, just exact month forecasting is too unsure at this time while they have so much underway.
perfect choice
28/9/2016
19:32
Thanks for posting toyin,an excellent write up.I may lift my holding on back of that.
nurdin
28/9/2016
19:31
ToyinThanks, great pick up
nfs
28/9/2016
19:15
I think I was very much on the ball with regards to a January 2017 listing but that should not at all be disappointing when everyone is targeting a £3.50 share price from the current £1.50.
ayesha4
28/9/2016
19:00
By the way the name change is purely due to the similarity to the other DJI company that sells drones and no other reason. There has apparently been slight delay due to Darren Mercer's fiancée having a baby. No big deal.
gatsby1
28/9/2016
18:44
This was on Seeking Alpha

Sorry for the length of post but thought it may be of interest.

All the best


Summary

Meeting with management of DJI Holdings gives insights into its partnership with and shareholding in state-owned media giant Xinhua's mobile app developer, Xinhuatong.

Xinhua's mobile app aims to reach out to the new frontier of China's mobile internet - newly connected rural areas.

Nasdaq listing still firmly in company's sights, but unlikely until early 2017.

Announced name change to BNN is reflection of changes in Chinese business already underway rather than anything very new.

I last gave an update about DJI Holdings (Private:DJIH) (DJI.L on the London Stock Exchange) around a month ago. In the two weeks after my briefing the share price shot up over 60% on strong volumes. As impressively, it has stayed up. I believe this stock is going for another good run before the end of the year. Even from these newly elevated levels, it could also be a star performer through 2017. DJI is now trading on a market cap of £308m ($401m) and has recently often been turning over around $2m a day equivalent. From a largely retail stock a few months ago, the company now boasts an impressive blue chip share register, with the likes of Fidelity, Capital, Henderson and Deutsche Bank featuring as new major shareholders. Such investors have poured in around £50m ($65m) from new equity placements into the company in the last few months.

Yet DJI, which is in the business of mass-data processing in China, has a lousy track record and no revenue. So what's going on? A rather inscrutable set of announcements last Thursday (which had to include denying a leak) didn't help. Following this announcement I managed to meet, for the first time, the CEO Darren Mercer and the new CFO, Scott Kennedy to find out what is behind one of London's hottest stocks, and one that is to IPO on Nasdaq soon.

The company has hired Brunswick, the expensive global PR firm, to give it a corporate makeover. They haven't got off to a good start. They announced that DJI Holdings will change its name next month to BNN Technology to give it a more Chinese identity (go figure?), and formally announced a convoluted new corporate "Mission Statement" (does anyone ever read them?) that talked a lot about improving life for Chinese citizens, but forgot to mention making money for shareholders. Also in the announcement was an apparently minor deal to enmesh DJI with a Chinese company called Xinhuatong, and an application for a something called a National Payments Processing license in China. The shares fell about 10%.

What in this announcement really mattered? The seemingly innocuous deal with Xinhuatong. This is about to propel DJI into one of China's great new land grabs of the next decade, the vast new frontier of mobile internet in rural China.

China is going smartphone mad, and the lucrative payments business is so far dominated by two players AliPay (controlled by Alibaba's Jack Ma) and TenPay, part of a big Chinese internet group called TenCent. As with everything in China, the numbers are mind-boggling. AliPay already has 400m registered users. By comparison, PayPal, globally, only has 188m users. AliPay already has an 70% share of China's mobile payment market, which is estimated be a US$235bn annual industry.

Yet mobile network coverage in China is so far confined to very large cities. This is about to change. The Chinese government has made it a priority to shift economic development to its huge rural hinterlands, which have been left behind by the economic boom. Yet rural China contains half of its 1.4bn population. The new Five Year Plan, just released, has declared that the construction of the country's 4G network is to be rapidly accelerated. This is a massive project. So much so, that within four years it is intended that 85% of the entire population will have 4G coverage. All towns and administrative villages will be covered AND they will all have access to free government wifi. You can buy a smartphone for $30 in China. Think about it. This means that within about the next three years, a population larger than that of the United States, which has never even had fixed internet connectivity before, will potentially have a 4G smart phone in their hands. That is quite a frontier.

It's called the "Race for Rural" in China. And who is going win this hugely lucrative market for mobile payments, apps and all sorts of other mobile services? Well the Chinese Government has decided it wants to get in on the action. The government has tasked this job to the sprawling and giant state media company, Xinhua (OTCPK:XHUA) (pronounced "shin-wah"). Xinhua indirectly controls almost every television station and newspaper in China, and has offices in even the smallest of towns across rural China.

Yet in the new world of smartphones Xinhua has been left behind. The state media entity has now decided to join the mobile internet race especially as this is now part of government rural policy. It has launched a government Xinhua phone app, but the app is really more like a portal. Within this Xinhua portal will the whole gamut of mobile services (or "sub apps") that you would normally find spread across your phone home pages. You press the app, and that opens up a whole box of other Xinhua-branded apps, probably services such as insurance, on-line loans, personal credit ratings, bookings, etc, like a little Xinhua online department store. There will be other services, most obviously games, sports, news etc to attract and keep users. This new Xinhua app is rolling out fast. It already has over 150m users and targets to hit 300m users by the end of next year (about the same as Twitter or Sykpe globally). Thereafter it has the potential to be one of the biggest apps in the world.

So which hitherto unknown company is Xinhua using to create this bold move onto mobile internet? The answer is Xinhuatong, and DJI is the exclusive technology partner to Xinhuatong. It is already providing payment services, from which it takes a turn. As importantly, it gives DJI a seat at the table as Xinhua and Xinhuatong map out their mobile internet strategy.

Between now and Christmas there will be a series of other announcements relating to new services to drop into Xinhua's mobil internet department store. I don't know what these specially are, and haven't asked, although there has been some speculation around the market. DJI has around $60m which it is busy spending to set up a series of JVs in China, which will be announced one by one. There are also fairly obvious other areas for revenue generation such as data mining/sales and advertising. But we will have to wait and see what comes through.

It is important to understand the value of the Xinhua name in China. If, like me, you are over 40 years old, do you remember the first time you ever made a payment over the internet? It was a bit scary. You typed in your credit card details (which you assumed would probably get stolen), pressed "Enter" and wondered why anyone would bother sending you anything in return, now that they already had your money. It is an experience that is going to be repeated tens of millions of times across rural China in the next few years. For new rural internet users to feel safe with their payments, Xinhua, the official government news agency, is the most trusted brand there is (like the BBC, here in the UK). Unlike the two Chinese e-payments giants, it has 2,800 physical offices throughout China, so it quickly sign up e-payment deals with local utilities and the like. And processing all these transactions for a fee will be DJI. Further, the National Processing Payments license, referred to in Thursday's announcement, will allow DJI to take much fatter margins on each payment, as it can operate on the same terms as a credit card company.

DJI will not only be handling the back end, but will also be building front end mobile internet businesses, including content, for Xinhuatong as well. It ought to be the a relatively easy business; find the app ideas that have worked best in the West, source a strong local or international JV partner, put the Xinhua brand on it, and insert it into Xinhua smartphone portal. As investors understand this path forward, they are pouring into this stock in London with a market cap of just $420m. Compare that to AliPay, via its parent AntFinancial, which is expected to list in Shanghai soon for perhaps $150bn.

The new name BNN, I discovered, stands for Beijing New Net, which is DJI's operating company in China. The new name will be launched, along with a zippy new web site, next month. Expect the stock ticker to change from October 10, and will probably be "BNN". All this new re-branding work has pushed back the Nasdaq listing. The submission will go in after the name change next month, but there may also be delays as any subsequent new business announcements will then have to be incorporated into the prospectus. I am told the Nasdaq listing is now likely early in the new year. While this should help to re-rerate the stock, as fresh US investors will bring better understanding and higher multiples, the Aim listing has surprised me in the way it has carried the stock upwards and much bigger volumes.

So where is the share price going? The company believes it can achieve the revenue forecast of £85m for 2017, put out by the company's broker Mirabaud. and £27.8m profits, or EPS of 13.4p, which puts the stock on a distinctively un-racy prospective PER of 11.4x. This should certainly support the current share price on Aim given that this is a growth stock, and would point to a valuation of perhaps twice this on Nasdaq, say about £3 per share. The stock enjoys a buzz in London, and has also become a bit of trading stock. This is great for liquidity and provides buying support on any dips. We will have to wait for details of new business deals announced in the next few weeks and months. I am told Mirabeau will be putting out an updated set of forecasts. The company believes the national payments processing license should be granted in due course and boost payments margins substantially. Based on all this, a successful Nasdaq listing, and assuming the markets hold up generally, I would hazard at a share price of around £3.50 by the end of the 1Q17. I don't want to forecast beyond that, before we know more details of how this business is going to unfold.

To date, the CEO Darren Mercer, has done an astonishing job in turning around a moribund venture, and re-positioning it smack in the middle of China's internet sweet-spot. If he pulls this off, he will have succeeded where many of America's greatest tech companies have recently failed, by building a major Chinese app. Next spring will probably mark an end to the stage where the stock's pricing is all about big announcements, and the Nasdaq listing. Legacy shareholders will probably be taking profit as new US investors take up the running in the stock. In 2017 the story for DJI is going to be all about revenue and delivery. The company will need to ensure it books revenue as forecast, and lives up to the substantial general expectations it has built up for itself. The roll-out of 4G and free wifi to rural China is a massive story, and DJI Is the only way to play it in listed equities right now. However, the company will need some decent on-going brokerage research to knit together the various detailed announcements so investors can see the whole story.

The company is planning to beef up its board. New high-profile directors are important to the company at this stage, especially those prepared to get involved rather than just take a fee. The promised announcement of a strong US broker is also important. The company is starting to get a reputation for missing its own deadlines. I like the new CFO, Scott Kennedy, he is a clear thinker. He has a strong CV and is especially experienced in handling complex businesses. Among other things he was Global Head of Business Information, Planning and Analysis at HSBC (aged just 32). He also has good recent experience running a Nasdaq listing when he was FD of Willis Towers Watson (NASDAQ:WLTW), which has revenues over $8 billion. During my 3 hour meeting I saw good chemistry between him and Darren Mercer. That's going to be useful, because they have a lot of work ahead of them.

I hold the stock (DJI.L on the London Stock Exchange), and all price-sensitive information is based on announcements in the public domain.

Disclosure: I am/we are long DJIH.

toyin
28/9/2016
13:48
Up too now less than 400,000 shares traded mostly in small numbers so no big investors coming for this stock at mo .
But at least holding the slide today .

Hopefully announcements can start early next week , then the price will jump !

charlesdarcy
28/9/2016
11:54
News imminent. Was mentioned that there would be more announcements end of month and beginning of next, with the vote. Investors banking on announcements helping share price I suppose, at a decent price.
tbrock2
28/9/2016
11:53
...because it will be too late to buy at a reasonable price once the Nasdaq listing procedure is set in motion on or soon after 7 Oct..:o)
nurdin
28/9/2016
11:25
Anyone has a clue why now the DJI is in mad buy up?

Lots buy, one is £51k +

fafa48
27/9/2016
14:32
One bit of info which I gleaned from my conversation with the CFO is that their business model is based on commission per use basis.The commission rate can vary anywhere between 0.1% to 1% .

Although the commission levels look small,bear in mind that there could be billions of transactions going through their platform once their services are fully established.

nurdin
26/9/2016
20:07
National Sports Lottery sales, including Shangdong, have increased significantly according to an article on XH yesterday. Just under a 16% annual rise. Not a huge cashflow for DJI through the Baifa JV but any earnings visibility would be welcome and may already be coming through for the last few months, unfortunately not in time for HI. No information on the mobile app take-up in the article. Useful to know that market is growing however.
ripplevale
26/9/2016
19:46
Ah but I am still invested and as stated earlier would advise strongly in having a stop loss in place. The changing story does not sit comfortably with me and I think Snowy has put a very lucid argument together, whereas Trev am glad your research is showing through.

I await incoming - I hold

swiss paul
26/9/2016
19:32
Monts, perchance are Mirabaud the house broker - and was the research remunerated?
As topaz says your free to make your own decisions? Just make sure you have a stop loss in place.
All the best Swiss

swiss paul
26/9/2016
19:29
topazfrenzy - should the board not deliver as the board have stated that it will, I will be an unhappy bunny as will many other pis. You are no longer invested and so until such time as the board let down those, including me, who remain invested may I ask you to kindly refrain from posting in the way you have recently. Thanking you in anticipation.
snowyflake
26/9/2016
18:25
Snowy and all, I have never said that anyone should sell I don't think, but only voiced my concerns, and for that I am called 'scum', well whatever, but I am a stubborn lass and will not relent. I was invested here and therefore part of the story, I am however a hardened market 'b$*ch by now and therefore lucid with my investments and like to share my thoughts and therefore like to ask questions, do remember that! These are however only my opinions and I do not wish harm on anyone, but I do like clarification and answers, perhaps that is too much to ask on AIM?
topazfrenzy
26/9/2016
17:17
Snowflake ; thanks for your reply partly to me and more info to the rest of the forum .
Excellent post and very sound thinking .

Have a evening G & T on me 👍

charlesdarcy
26/9/2016
16:54
charlesdarcy - there can be little credibility attached to a person who is ramping DJI as a buy and is a self proclaimed investor and bull of the company one minute and who in the next minute is a raving bear of the company and shrieking for all other investors to sell. There has been no worthwhile reason attached by her for this turnaround.

Therefore do not expect too much by way of an explanation from her save wild guesses.

As far as the future is concerned, this is a speculative stock and it would be wise to recognise that. Having said that if all goes according to plan and if the board do not foul up there is plenty to invest for.

I said my bit earlier about what I regard as an appallingly scripted RNS released on Thursday. It certainly gave me the jitters and was in stark contrast to the RNSs released earlier in the year which were professionally written and easy to follow. Enough of that.

We have H1 results due the 30th of this month. On the 7th October there is a General Meeting to pass the resolution to change the name of the company. It was mooted by Michael Walters amongst others that there would be 2 to 3 announcements of deals, one of which was significant. We may have had one; there may be two more to follow.

The company have made it clear that following the meeting on 7th October the process to list on Nasdaq will formally begin (whatever Topaz says).

I expect that the name of the US sponsor will be announced in the short term.

There is a "typical" timescale laid down by Nasdaq for processing the application although my understanding is that it can take longer or shorter. The detail is on the web and easy to find.

I do not think that the company will list earlier than December but that is not the end of the world; the process could go over until January. However it is better that the board and its advisers get it right and do not botch it.

I know that £5 a share has been floated by some posters but I personally think that it would be nice to see the company list at $4 per share which is currently just over £3. Do remember that the company is making a request to AIM to reclassify its listing on AIM.

If the shares list on Nasdaq at $4 the shares will in any event be fungible. We could see a demand for the stock and further the London price should reflect the US price. £3 a share in London would value the company in London at £620 million. However much will depend on the forecast earnings of the company. More will be gleaned from the prospectus.

Take a look at the valuation of 500.com which is a Nasdaq listed company which only relies (so far as I am aware) on the Chinese online lottery. DJI is no longer reliant on the Chinese lottery - it is a different company.

If you are interested in Michael Walter's views it is a subscriber site (costs £75 pa). I would not breach copyright; not would I expect other subscribers to do so.

This like all other stock market companies means DYOR.

snowyflake
26/9/2016
16:23
topaz, seriously, please explain to the group the reason for your relentless posts on this forum.

Am I right in saying you don't personally know anyone on this forum ?

If that is the case, please explain to me why you care so much to continuously post negative comments, advising people that you do not know to sell their shares.

To me that does not make sense. No one would care enough as you do, care enough to post 10 posts every single day, rambling on about the same stuff, for the benefit of complete strangers that you do not know.

Therefore, the only plausible conclusion I can draw from this is that you are trying to drive the share price down so that you can buy back in cheaper.

Seriously topaz bore off.

mrcheeseball1
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