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Michael Burry

Deswell Industries
NASDAQ:DSWL
2000-2005
Industry: Distributor (Doors, Windows, Trim)
Category: Value

Context
Deswell Industries is a Hong Kong-based contract manufacturer of metals, plastics, and electronics. Deswell does PCBs, telephones, computer peripherals, electronic toys, which are sold to OEMs who brand the end product.
Deswell is behind the scenes, Vtech and Epson are major customers.

Why the Company was Mispriced
It trades on the Nasdaq and as a small Chinese company, it's shares are met with distrust and avoidance.

Alternative View
Deswell has on-site dormitories for workers, a tactic profitable but not practical in the US.
The company has a reputation for timely, efficient operations and have been winning larger contracts over the years.
Business with Epson is expected to triple over the next year, and Vtech is experiencing solid growth as well.
There is no dividend tax in Hong Kong, so as officers own a majority share, they pay a generous dividend as a partial salary replacement.
The company has excellent working capital management, sales increasing 47% with less than 20% increases in inventory and A/R.
The company has $5.33/share in cash, an enterprise value of $8.50, and earnings of $2.01/sh over the past 4Qs. Note that there is more FCF than earnings.
Considering the recent revenue growth, growing business with Epson and Vtech, and the cash/profitability, Burry likes these shares at $13.75.

Result
Deswell split it's stock twice, both 3 for 2 splits, Burry's cost per share adjusted is $6.11.
The 1 year CAGR is 20%, 3 year CAGR is 30%, and the 5 year CAGR is 20%.
Since the sell date is unknown, I will generously take the 3-year CAGR of 30%, or total return of 120%.