Welcome @craft
Maybe a period coming up where they have the capacity and willingness to suffer for the future which the market may not take too kindly in the short term.
From what I can tell, I believe that's the case. Should they resolve the integration issues (that is, get costs in line), they should immediately see an increase in NPAT. Then they have a rather large runway to take on additional products (IoT, Printers, more A/V lines) that they've typically put off due to insufficient warehouse space.If they fill the entire warehouse (old and new sections), even at a lower $/sqm rate on the newer area, $4-5bn revenue is certainly doable within a few years. And given the competition (Synnex, Ingram Micro) focus very much on the lower value-add retail space (servicing the likes of HVN, JB), the competition is running adjacent to, rather than directly against DDR.
My biggest challenge with taking a position in DDR may be finding both a home from a portfolio diversification perspective.
I can't speak for your portfolio, but the IT space in general is certainly running at GDP+, and looks to do so for a while. Convergence of many products into IT hardware (AI enabled security cams/physical security, A/V integration, IoT) is growing the pie significantly.
It's one industry I'm happy to be overweight (within reason).
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