Dicker Data Limited (ASX: DDR) is an information technology company and is a specialist in IT hardware distributor across Australian and New Zealand operations. The company works with more than 3000 retailers. It offers account management solutions to corporate accounts which requires configuration, volume pricing and imaging. The company offers a wide range of options in credit including Credit Card, direct transfer and credit account.
The subsidiaries of the company include Express Data Holdings Pty Limited, Dicker Data New Zealand Ltd and Simms International Pty Ltd. The company is currently placed as the leading distributor for several vendors in Australia including HP, Cisco, Toshiba etc, and has enjoyed continuous growth despite the current economic climate.
On 20 February 2019, the Board of Directors of the company announced that the company had been appointed as the sole distributor for Lenovo DCG in the New Zealand market. The announcement marks the consolidation of Lenovo’s distribution strategy as they move from two distributors to an exclusive agreement with Dicker Data NZ.
The Chairman and CEO of the company David Dicker said that it is pleasing to see Lenovo demonstrating their confidence in NZ business of DDR with this substantial change in strategy. Moving to an exclusive distribution agreement will enable the company to invest in hiring more resources and to create a unique go to market strategy focused on delivering long-term profitable growth for both the organisations.
The company has decided to implement a model focused on the customer whereby Dicker Data will provide Lenovo DCG with an end-to-end go to market rather than a channel-push strategy, keeping in mind the importance of customers as stated by Nathan Knight, the General Manager, Lenovo DCG, Australia and New Zealand (ANZ). He also mentioned that Lenovo has put both of its distributors through a rigorous process over the last six months and has finally decided to appoint Dicker Data NZ. Lenovo and Dicker together can now bring an end-to-end market proposition to New Zealand, allowing for the best relationship with partners and end users as believed by the General Manager.
Dicker Data recently announced a fully paid ordinary dividend of AUD 0.070 per share with ex-date of 14 February 2019, record date of 15 February 2019 and payment date of 1 March 2019.
On the price-performance front, the stock of Dicker Data Limited last traded at $3.20 with an increase of ~4.235% during the day’s trade and with a market capitalisation of $493.39 million. The stock has generated a YTD return of 8.48% and posted returns of 0.33% and 7.72% over the last six months and three months period respectively. It has a 52-week high price of $3.230 and a 52-week low price of $2.730 with an average trading volume of 67,993. The stock is trading at a PE multiple of 16.540x with an EPS of AUD 0.186. The annual dividend yield for the stock is 6.58%.
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