Added to YB: 2026-05-01
Pitch date: 2026-04-29
DSWL [bullish]
Deswell Industries, Inc.
+0.29%
current return
Author Info
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Company Info
Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers in China, the United States, Europe, Hong Kong, the United Kingdom, Canada, and internationally.
Market Cap
$53.4M
Pitch Price
$3.40
Price Target
6.68 (+96%)
Dividend
5.97%
EV/EBITDA
-4.93
P/E
4.30
EV/Sales
-0.40
Sector
Electronic Equipment, Instruments and Components
Category
value
Deswell Industries (DSWL) – A Profitable & Dividend Paying Business at a Negative Enterprise Value
DSWL: China-based OEM manufacturer, $66M sales (down from $86M '22 peak but margins expanding). Trading 0.62x NCAV vs 0.79x 10y median, 0.51x TB, -$27M EV. Balance sheet: $79.7M cash/liquid investments vs $53M mcap. 6% div yield ($0.20/share, paid annually since 2012). Pui family owns 61.8%. Operating business: 5.8% EBIT margin (vs 3.8% 10y), 12-14% ROCE. Risks: China exposure, customer concentration (top 2 = 34% sales), PCAOB delisting uncertainty. Upside: multiple normalization to 0.79x NCAV = $5.30/share (+60%, 17% CAGR by '29), or aggressive capital return (tender/special div). Classic deep value perennial.
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