MANAGEMENT PERFORMANCE - - - - -
FISCAL YEAR ENDING 2023 2022 2021 2020 2019
GROSS PROFIT MARGIN 37.35% 42.53% 38.00% 28.29% 42.42%
NET PROFIT MARGIN 24.7% 27.1% 20.9% 9.9% 19.1%
ASSET TURNOVER 0.34 0.31 0.34 0.36 #DIV/0!
FINANCIAL LEVERAGE 1.93 1.80 2.76 2.35 #DIV/0!
ROA 8.5% 8.4% 7.2% 3.6% #DIV/0!
ROE 16.4% 15.1% 19.8% 8.4% #DIV/0!
DPO RATIO 0.18 0.12 0.17 #VALUE! #VALUE!

KPPROP 20.4.2024
BUSINESS PERFORMANCE
Fiscal year is April-March. All values MYR Millions. 2023 2022 2021 2020 2019
INCOME STATEMENT
SALES/REVENUES 370.62 270.89 301.99 214.08 145.88
GROSS INCOME 138.42 115.21 114.75 60.56 61.89
NET INCOME 91.51 73.29 63.09 21.24 27.82
NOSH (DILUTED) 919.85 919.81 786.49 130.60 109.11


CASH FLOW STATEMENT - - - - -
FUNDS FROM OPERATIONS 100.43 72.52 77.51 21.95 17.67
NOCF 180.75 140.37 51.56 28.96 -47.20
CAPEX -82.02 -173.59 -11.80 -1.96 -1.05
FREE CASH FLOW 98.73 -33.22 39.76 27.00 -48.25
DIVIDENDS 16.66 8.90 10.77 #VALUE! #VALUE!


BALANCE SHEET - - - - -
Fiscal year is April-March. All values MYR Millions. 2023 2022 2021 2020 2019
RETAINED EARNINGS 165.00 82.00 8.00 -55.00 236.00
TOTAL EQUITY (Book Value) 635.00 558.00 486.00 318.00 252.00
TOTAL ASSET 1,081.00 1,079.00 873.00 879.00 593.00

The business of Dutch Lady remains exceptional. Despite huge capex, it carries little long-term debt on its balance sheet. Dutch Lady remains highly profitable and it is self financing the building of its new manufacturing facility (compensation of its old factory and land acquired by the authority, through internally generated profits, retaining more of its earnings by paying out lower dividends and through funding from its suppliers).

Due to its economic moat, Dutch Lady is able to grow without the need to borrow large sums of money.

Calvin is not honest.

When a company lost money, he was already out, having sold earlier.

When the company is in the money, after very long period, his recommendation was a gem.

GSB was a gruesome business, dealing with CD business and property. The company was promoted as cash rich by Calvin because it sold a hotel for $12 million and as was usual, Calvin hyped this to the hilt. We know the story of how the first owner (GSB bears his name) sold out to this new owner. As far as Calvin's promotion was concerned, it ended then.

Well, kudos to the new management if they have turned around this company with new injection of fresh capital, assets, and new ideas.

I would not attribute this to the "slow and steady" win the race, as the title claimed.

It is possible and almost probable, should NETX turned out to do well, we will see another similar post on NETX.

Good morning to all.

Fiscal year is January-December. All values MYR Millions. 2023
CASH AND EQUIVALENT 785
ST DEBT & CURRENT PORTION OF LT DEBT 587
LT DEBT 3,235
TOTAL DEBT 3822
NET CASH (DEBT) -3037

EBIT 452
Interest Expense 205

KPJ 20.4.2024
BUSINESS PERFORMANCE
Fiscal year is January-December. All values MYR Millions. 2023
INCOME STATEMENT
SALES/REVENUES 3,419.00
GROSS INCOME 1,432.00
NET INCOME 281.00
NOSH (DILUTED) 4,361.00
-
CASH FLOW STATEMENT -
FUNDS FROM OPERATIONS 619.55
NOCF 607.85
CAPEX -240.50
FREE CASH FLOW 370.35
DIVIDENDS 146.20
-
BALANCE SHEET -
Fiscal year is January-December. All values MYR Millions. 2023
RETAINED EARNINGS 1,390.00
TOTAL EQUITY (Book Value) 2,528.00
TOTAL ASSET 7,246.00

-
MANAGEMENT PERFORMANCE -
Fiscal year is January-December. All values MYR Millions. 2023
GROSS PROFIT MARGIN 41.88%
NET PROFIT MARGIN 8.2%
ASSET TURNOVER 0.49
FINANCIAL LEVERAGE 2.97
ROA 4.0%
ROE 11.9%
DPO RATIO 0.52
-
VALUATION -
FISCAL YEAR ENDING 2023
PRICE 2.000
MARKET CAP 8,722.00
-
NAPS 0.58
EPS 0.06
P/B 3.45
P/E 31.04
EARNINGS YIELD 3.22%
FCF YIELD 4.25%
DIVIDEND YIELD 1.68%

Dutch Lady

This company is suffering from some short-term business problems. The market has beaten its share price down a lot.

Look at the company in greater detail. It is growing its revenues. Despite huge capital expenditure to set up the new manufacturing plant, its short term and long term debts remained very low. It is able to generate cash from its operations and delaying payments to its creditors to finance the capex. Though its dividends were slashed over the last 5 years, it is still paying 50 cents per share in dividends. All these points to Dutch Lady has economic moat. Its business will sail on through troubled times.

It is a company that is not hurting for cash and is not sitting on a mountain of debt.

Once the new manufacturing plant is up and functioning fully, we can expect to see ton of cash piling up, little debts and its dividends creeping up again.

Dutch Lady Milk Industries is a Malaysia-based company that produces and distributes dairy products. The company?s products include infant formula milk, growing-up milk, ultra-high-temperature processing milk, pasteurised milk, sterilised milk, family powdered milk, low-fat and zero-fat drinking yoghurt, and fruit juice drink. The products are packaged and marketed in various formats under the brand Dutch Lady. The company primarily operates domestically, but it distributes some of its products to surrounding countries in Asia and Oceania. Dutch Lady Milk Industries is owned by Royal FrieslandCampina.

FISCAL YEAR ENDING 2023 2022 2021 2020 2019
PRICE 0.785 0.87 1.07 0.94 0.57
EPS 0.07 0.05 0.04 0.04 0.03
P/B 2.64 3.44 5.03 5.82 5.69
P/E 11.95 16.15 24.53 24.76 16.61



GROSS PROFIT MARGIN 67.74% 72.30% 56.61% 66.39% 71.98%
NET PROFIT MARGIN 63.0% 61.2% 44.9% 52.6% 52.6%
ROA 19.2% 21.2% 22.3% 26.1%
ROE 26.0% 25.9% 27.6% 37.9%
DPO RATIO 0.22 0.11 0.25 0.32 0.27

Revenues, profits before tax and earnings trending upwards the last few years.


OTOH, price of its stock trending downwards.

Huge capex and high borrowings (debts).

>>>
Posted by Vdhawan > 12 hours ago | Report Abuse

its current pe is only around 8x. Still cheap 😁
>>>

Never use PE as a single indicator. A low PE does not equate to cheap. When the price of a stock drops, ALL valuation parameters look "cheap".

As Daniel Kahneman shared in his wonderful book, engage your System 2 (slow) thinking.

<<<
Posted by Raymond Tiruchelvam > 4 hours ago | Report Abuse

yinson is a standard story, company with the single highest book order.... in the magnitude of $22b of RM102b.... which company can even come close ??? but this comes at a very high cost.... RISK, as just one fpso screw up or delay can alter the whole revenue chain, but if alls well there is only hard cash to be earned, besides yinson will be heavily financing all this book order by itself.... largely, so there u go
>>>

Probability and consequences, like the game of Russian roulette.

NESTLE MALAYSIA

This is definitely a GREAT company.

Revenues grew from 5.5b in 2019 to 7.1b in 2023.
Gross Income grew from 2.1b in 2019 to 2.2b in 2023.
Net Income dropped from 673m in 2019 to 660m in 2023.

From 2019 to 2023 (a period of 5 years), it generated 4.1b in net cash from its operations.
From 2019 to 2023 (a period of 5 years), it spent 1.4b on capex.
From 2019 to 2023 ( a period of 5 years), it generated 2.7b in Free Cash Flows.
From 2019 to 2023 ( a period of 5 years), it distributed 3.04b as dividends.

How much was retained earnings from 2019 to 2013? 10m
Its total equity in 2019 was 665m and in 2023 was 675m.

Its gross profit margin was a high of 37.6% in 2019 and a low of 30.9% in 2022. Its average GPM over the 5 years was 34.1%. In 2023, its gross profit margin was 31.64%.

Its Net Profit Margin shrunk from 12.2% in 2019 to 9.3% in 2022. The Net Profit Margin in 2023 was 9.4%. The average Net Profit Margin for the last 5 years was 10.2%.

We can expect its profit margins to expand in the near future when the costs of its goods are cheaper.

Its Dividend Payout Ratio was a high of 0.99 over the 5 year period.

Over the last 5 years, its average P/B was 52.2x, its average P/E was 52.7, its average Earnings Yield was 1.91%, FCF Yield was 1.70% and its average DY was 1.89%.

In 2023, its P/B was 44x and P/E was 45x, both were the lowest for the last 5 years.

In 2023, its earnings yield was 2.22%, its FCF yield was 2.91% and its DY was 2.07%; these are the highest for the last 5 years.

QUALITY: GREAT BUSINESS
MANAGEMENT: EXCELLENT, SUPERB
VALUATION: FAIR PRICE (FOR THOSE WITH LONG TERM HORIZON)

Gross profit margins of Nestle

2023 32%
2022 31%
2021 34%
2020 36%
2019 38%

How to monitor Nestle's performance?

Look at its profit margins.

QL
Fiscal year is April-March.
All values MYR Millions. 2023 2022 2021 2020 2019
SALES/REVENUES 6,243.00 5,236.00 4,379.00 4,156.00 3,619.00
GROSS INCOME 1,254.00 902.00 870.00 826.00 687.00
NET INCOME 347.00 217.00 312.00 239.00 217.00
NOSH (DILUTED) 2,434.00 2,434.00 2,434.00 2,434.00 2,434.00
- - - - -
- - - - -
FREE CASH FLOW 345.52 218.42 223.20 67.75 -49.67
DIVIDENDS 170.36 85.18 73.01 73.01 73.01
- - - - -
- - - - -
TOTAL EQUITY (Book Value) 2,888.00 2,706.00 2,546.00 2,091.00 2,014.00
TOTAL ASSET 5,285.00 4,957.00 4,877.00 4,096.00 3,708.00
RETAINED EARNINGS 2,103.00 1,933.00 1,803.00 1,566.00 1,412.00
TOTAL 5 YR RETAINED EARNINGS 691.00
- - - - -
- - - - -
Fiscal year 2023 2022 2021 2020 2019
GROSS PROFIT MARGIN 20.09% 17.23% 19.87% 19.87% 18.98%
NET PROFIT MARGIN 5.6% 4.1% 7.1% 5.8% 6.0%
ASSET TURNOVER 1.26 1.07 1.07 1.12 #DIV/0!
FINANCIAL LEVERAGE 1.83 1.92 1.96 1.84 #DIV/0!
ROA 7.0% 4.4% 7.6% 6.4% #DIV/0!
ROE 12.8% 8.5% 14.9% 11.9% #DIV/0!
DPO RATIO 0.49 0.39 0.23 0.31 0.34
- - - - -
- - - - -
FISCAL YEAR ENDING 2023 2022 2021 2020 2019
PRICE 6.37 5.51 4.6 6.12 5.57
- - - - -
- - - - -
MARKET CAP 15,504.58 13,411.34 11,196.40 14,896.08 13,557.38
NAPS 1.19 1.11 1.05 0.86 0.83
EPS 0.14 0.09 0.13 0.10 0.09
- - - - -
- - - - -
P/B 5.37 4.96 4.40 7.12 6.73
P/E 44.68 61.80 35.89 62.33 62.48
EARNINGS YIELD 2.24% 1.62% 2.79% 1.60% 1.60%
- - - - #DIV/0!
- - - - -
FCF YIELD 2.23% 1.63% 1.99% 0.45% -0.37%
DIVIDEND YIELD 1.10% 0.64% 0.65% 0.49% 0.54%

Quality: GREAT
Management: Very good. Profit margins maintained. ROE high.
Valuation: ----

GREAT COMPANY. Revenue grew the last 5 years, though showing a decline over the last 3 years. Generating a lot of free cash flows. DPO ratio is 0.97.

At present price, it is not cheap. Those buying at present price will need to be convinced that this company can grow its revenues and earnings over the next 5 years to 10 years, consistently; introducing a bit of speculation into their buying of this company at present price.

INARI

FISCAL YEAR ENDING 2023 2022 2021 2020 2019
PRICE 3.04 2.61 3.89 2.76 1.68

MARKET CAP 11,336.16 9,630.90 12,973.15 8,928.60 5,409.60
NAPS 0.70 0.68 0.41 0.37 0.35
EPS 0.09 0.11 0.10 0.05 0.06

ROE 12.43% 15.57% 23.97% 12.90% 17.11%
ROA 10.92% 13.51% 18.13% 10.66% 14.33%
P/B 4.35 3.84 9.42 7.39 4.82
P/E 34.99 24.63 39.31 57.23 28.18
EARNINGS YIELD 2.86% 4.06% 2.54% 1.75% 3.55%
FCF YIELD 2.70% 4.09% 2.99% 2.89% 1.60%
DIVIDEND YIELD -3.02% -4.50% -1.68% -1.58% -3.91%

Fiscal year 2023 2022 2021 2020 2019 5 Yr AVG
GROSS PROFIT MARGIN 26.22% 30.36% 29.67% 20.42% 23.33% 26.00%
NET PROFIT MARGIN 23.93% 25.26% 23.09% 14.74% 16.65% 20.74%
ASSET TURNOVER 0.46 0.53 0.79 0.72 0.86 0.67
FINANCIAL LEVERAGE 1.14 1.15 1.32 1.21 1.19 1.20
ROA 10.92% 13.51% 18.13% 10.66% 14.33% 13.51%
ROE 12.43% 15.57% 23.97% 12.90% 17.11% 16.40%
DPO RATIO -1.06 -1.11 -0.66 -0.90 -1.10 -0.97

Fiscal year 2023 2022 2021 2020 2019 5 Yr AVG
GROSS PROFIT MARGIN 26.22% 30.36% 29.67% 20.42% 23.33% 26.00%
NET PROFIT MARGIN 23.93% 25.26% 23.09% 14.74% 16.65% 20.74%
ASSET TURNOVER 0.46 0.53 0.79 0.72 0.86 0.67
FINANCIAL LEVERAGE 1.14 1.15 1.32 1.21 1.19 1.20
ROA 10.92% 13.51% 18.13% 10.66% 14.33% 13.51%
ROE 12.43% 15.57% 23.97% 12.90% 17.11% 16.40%
DPO RATIO -1.06 -1.11 -0.66 -0.90 -1.10 -0.97

INARI 20.4.2024

Fiscal year is July-June. All values MYR Millions. 2023 2022 2021 2020 2019
SALES/REVENUES 1,354.00 1,548.00 1,429.00 1,058.00 1,153.00
GROSS INCOME 355.00 470.00 424.00 216.00 269.00
NET INCOME 324 391 330 156 192
NOSH (DILUTED) 3,729 3,690 3,335 3,235 3,220

Fiscal year is July-June. All values MYR Thousands. 2023 2022 2021 2020 2019
FREE CASH FLOW 305,964 394,097 387,373 257,642 86,493
DIVIDENDS 342,383 433,169 217,962 140,772 211,621

Fiscal year is July-June. All values MYR Millions. 2023 2022 2021 2020 2019
TOTAL EQUITY (Book Value) 2,606.00 2,511.00 1,377.00 1,209.00 1,122.00
TOTAL ASSET 2,967.00 2,895.00 1,820.00 1,464.00 1,340.00

This company's business is very challenging. In my book, it remains a gruesome company.

Many years ago, it was struggling and for a period, its business became good for a period. A turnaround stock, during the global financial crisis. The other cocoa processors in Europe and US were facing difficulties financially and GCB benefitted during that period.

To grow, it requires a lot of capital. Profit margins are thin and volatile. Need to hedge the cocoa price which can be extremely volatile. The management, I recalled, hedge the cocoa price by stocking up with each contract received: thus ensuring a profitable transaction in the process.

Fiscal year is January-December. All values MYR Thousands. 2023 2022 2021 2020 2019
NET INCOME 139,143.00 188,081.40 196,759.90 267,319.90 266,860.60
D&A - 64283.4 62329 55787.6 32048
FUNDS FROM OPERATIONS -352,049.00 241,038.40 189,593.50 254,326.40 268,969.90
CWC -429,208.00 36,669.50 -268,727.20 -163,273.90 -362,669.20
NOCF -781,257.00 277,707.90 -79,133.70 91,052.40 -93,699.20
CAPEX -164,522.00 -274,821.70 -174,311.50 -212,459.90 -64,401.70
FREE CASH FLOW -945,779.00 2,886.30 -253,445.20 -121,407.50 -158,100.90
DIVIDENDS - -70,035.50 -36,276.20 -20,447.60 -33,971.70

https://m-bagger.blogspot.com/2017/04/analabs-hidden-gem.html

King of Analabs has done well, assuming he has been holding this stock since more than a decade ago.

King of Insas and Analabs 😀😀

The best way to avoid being scammed is to simply ignore unknown calls, as this completely removes the risk of being cheated over the phone.

Agree completely.

Fiscal year 2023 2022 2021 2020 2019
GROSS PROFIT MARGIN 4.68% 15.81% 13.60% 13.28% 33.15%
NET PROFIT MARGIN -0.32% -4.07% -2.49% -12.88% -3.20%
ASSET TURNOVER 0.37 0.33 0.34 0.31 0.47
FINANCIAL LEVERAGE 3.53 3.63 3.34 3.98 2.58
ROA -0.12% -1.34% -0.84% -3.97% -1.51%
ROE -0.41% -4.85% -2.80% -15.82% -3.90%



FISCAL YEAR ENDING 2023 2022 2021 2020 2019
PRICE 0.24 0.13 0.20 0.17 0.22

MARKET CAP (MILLION) 270.02 148.72 215.40 181.39 234.74
NAPS (BV) 2.10 2.14 2.65 2.46 3.10
EPS -0.01 -0.10 -0.07 -0.39 -0.12

ROE -0.41% -4.85% -2.80% -15.82% -3.90%
ROA -0.12% -1.34% -0.84% -3.97% -1.51%
P/B 0.11 0.06 0.08 0.07 0.07
P/E -27.00 -1.25 -2.69 -0.44 -1.82
EARNINGS YIELD -3.70% -80.02% -37.14% -228.79% -54.95%
FCF YIELD 273.32% 164.74% 427.58% 10.47% -10.22%
DIVIDEND YIELD 0.00% 0.00% 0.00% 0.00% 0.00%

PARKSON
Fiscal year is January-December. All values MYR Millions. 2023 2022 2021 2020 2019
Net Income before Extraordinaries 111 -160 -58 -520 -24
Funds from Operations 939 603 1,184 611 212
Changes in Working Capital -140 -293 -92 -468 -114
Net Operating Cash Flow 799 310 1,091 142 98
Capital Expenditures -61 -65 -170 -123 -121
Free Cash Flow 738 245 921 19 -24



Fiscal year is January-December. All values MYR Millions. 2023 2022 2021 2020 2019
TOTAL EQUITY 2,417 2,453 2,854 2,624 3,311
TOTAL ASSET 8,526 8,893 9,544 10,456 8,536

CASH AND EQUIVALENT 1,514 1,359 1,348 1,520 1,952
ST DEBT & CURRENT PORTION OF LT DEBT 781 834 1,831 1,054 189
LT DEBT 3,431 3,752 2,809 4,926 2,307
TOTAL DEBT 4,212 4,586 4,640 5,980 2,496
NET CASH (DEBT) -2,698 -3,227 -3,292 -4,460 -544

ACCOUNT RECEIVABLE 599 422 415 323 356
ACCOUNT PAYABLE 1,284 683 879 769 1,078

Thanks. It belongs to my too difficult to understand file. :-)

COASTAL

FISCAL YEAR ENDING 2023 2022 2021 2020 2019
PRICE 1.50 2.47 1.37 0.69 1.32

MARKET CAP (MILLION) 828.04 1,311.93 718.63 364.59 696.27
NAPS (BV) 3.30 2.56 2.11 2.06 2.23
EPS 0.70 0.34 0.06 -0.20 0.03

ROE 21.07% 13.26% 2.93% -9.67% 1.22%
ROA 18.18% 8.94% 2.31% -6.75% 0.87%
P/B 0.45 0.97 0.65 0.34 0.59
P/E 2.16 7.28 22.20 -3.47 48.31
EARNINGS YIELD 46.38% 13.74% 4.51% -28.81% 2.07%
FCF YIELD 19.28% 4.93% -7.63% 9.91% 23.23%
DIVIDEND YIELD 0.00% 0.00% 0.00% 0.00% 0.00%

Fiscal year is July-June. All values MYR Millions. 2023 2022 2021 2020 2019
TOTAL EQUITY 1,823 1,359 1,105 1,086 1,177
TOTAL ASSET 2,112 2,016 1,399 1,556 1,648

CASH AND EQUIVALENT 185 239 275 524 503
ST DEBT & CURRENT PORTION OF LT DEBT 45 344 44 242 63
LT DEBT 43 120 50 35 231
TOTAL DEBT 88 464 94 277 294
NET CASH (DEBT) 97 -225 181 247 209

ACCOUNT RECEIVABLE 1,056 784 192 166 177
ACCOUNT PAYABLE 149 141 135 136 130



Balance Sheet is surprisingly strong.

>>>

Stock: [YINSON]: YINSON HOLDINGS BHD

1 day ago | Report Abuse

Fiscal year is February-January. All values MYR Millions. 2023 2022 2021 2020 2019
ACCOUNT RECEIVABLE 1,023 644 575 548 433
ACCOUNT PAYABLE 462 202 178 148 113

Long-Term Note Receivable 10,334 6,688 4,405 1,501 15


[Often, a business will allow customers to convert their overdue accounts (the business’ accounts receivable) into notes receivable. By doing so, the debtor typically benefits by having more time to pay.]

>>>>


Can someone help dissecting the > 10b long term notes receivables?

Who is the sifu?

3 types of companies: Gruesome, Good and Great

Padini falls into my category of a great company.
Consistent and growing earnings.
Good gross profit margins and net profit margins.
Healthy earnings that translate into a lot of cash from operations.
Generates a lot of FCF.
Paying dividends (DP0 over the 5 years was 0.42)
Capex is < 25% of its net earnings.

FISCAL YEAR ENDING 2023
PRICE 3.44

MARKET CAP (MILLION) 2,263.52

ROE 21.44%
ROA 13.39%
P/B 2.18
P/E 10.15
EARNINGS YIELD 9.85%
DIVIDEND YIELD 3.34%

Fiscal year is July-June.
All values MYR Millions. 2023 2022 2021 2020 2019
CASH AND EQUIVALENT 605 809 524 441 472
ST DEBT & CURRENT PORTION OF LT DEBT 94 74 76 91 21
LT DEBT 367 318 317 432 2
TOTAL DEBT 461 392 393 523 23
NET CASH (DEBT) 144 417 131 -82 449

ACCOUNT RECEIVABLE 40 40 48 42 52
ACCOUNT PAYABLE 92 127 38 58 102

Fiscal year 2023 2022 2021 2020 2019
NET PROFIT MARGIN 12.24% 11.68% 5.25% 5.54% 8.97%
ASSET TURNOVER 1.09 0.88 0.81 0.97 1.87
FINANCIAL LEVERAGE 1.60 1.68 1.59 1.83 1.29
ROA 13.39% 10.31% 4.24% 5.36% 16.74%
ROE 21.44% 17.28% 6.73% 9.79% 21.62%

Fiscal year is July-June. All values MYR Thousands. 2023 2022 2021 2020 2019
Funds from Operations 364,969.00 297,312.00 168,008.00 242,850.00 208,694.00
Changes in Working Capital -367,371.00 187,628.00 25,801.00 -79,349.00 -72,200.00
Inventories -304,480.00 80,481.00 53,701.00 -8,897.00 -28,669.00

PADINI 20.4.2024

Fiscal year is July-June. All values MYR Millions. 2023 2022 2021 2020 2019
TOTAL EQUITY (Book Value) 1,040.00 891.00 802.00 766.00 740.00
TOTAL ASSET 1,666.00 1,494.00 1,274.00 1,398.00 956.00

Fiscal year is July-June. All values MYR Millions. 2023 2022 2021 2020 2019
NET INCOME 223 154 54 75 160
NOSH (DILUTED) 658 658 658 658 658

Fiscal year is July-June. All values MYR Thousands. 2023 2022 2021 2020 2019
FREE CASH FLOW -28,870 469,249 188,795 152,158 109,611
DIVIDENDS -75,660 -65,791 -16,448 -49,343 -75,660

DPO RATIO 0.34 0.43 0.30 0.66 0.47

>>>
Posted by Sslee > 1 minute ago | Report Abuse

Is 3iii implied Tong of theedgemalaysia who started this round of Insas spike up is the only one who has this tremendous insight that this stock is cheap and all the other people who are very active, smart and intelligent (3iii included) in the market are ignoring this company because of their ignorance or ego or prejudice or they are not smart enough?
>>>


SSLee
Your interpretation is absolutely off the mark.
It is a general remark. Ask the right questions. The first question to ask when you find an extremely undervalued stock is obvious. Why is it so undervalued?

Is Parkson undervalued? I think its P/B is even lower. But then, many can give a lot of reasons why it should be so.

It is a check list to guide one on deciding whether this is a value trap or not a value trap. A very general, generic statement.

If they had identified Padini then, they would have a multi-bagger (5x to 6x) and all its dividends.
There is always an opportunity cost to every decision.
No right or wrong. Just trying to understand how we make decisions guided by our internal schema.
Read Think fast and think slow by Kahneman, an excellent book on understanding the process of thinking.

I believe many deep value investors in Insas in i3 bought when they were active participants in INVESTLAH FORUM. How many years have passed by?

P/B 0.27

So, when full value is realised, the investor gained 4 folds. When will this be realised? How much will be the gain (also uncertain)? These are among the limitations of deep value investing. OTOH, these bargains, by nature of their business, are less likely to grow into multi-baggers.

FISCAL YEAR ENDING 2023
PRICE 1.00

MARKET CAP (MILLION) 663.02

ROE 4.91%
ROA 4.05%
P/B 0.27
P/E 5.40
EARNINGS YIELD 18.51%
DIVIDEND YIELD 2.50%


Some investors are attracted to this stock because it is so undervalued. Yes, it is undervalued and they are right.

VALUE TRAPS
How do you decide whether it is a value trap or not?

Value traps are statistically very cheap and very alluring.

First question to ask: “Why is God so kind on you that you are the only one who has this tremendous insight that this stock is cheap and all the other people who are very active, smart and intelligent in the market are ignoring this company?”

Is there an embedded growth optionality in the company? Can the company have a growth phase? Can the company come out with some new product offering which can introduce growth?

This is a dynamic exercise. You will need to revisit the hypothesis every now and again, at intervals.

Two characteristics of value traps are:

(1) They typically don’t tend to grow more than the nominal GDP
(2) They cannot reinvest their cash flow.

So the question you should ask is what is the catalyst which will change this and allow them to reinvest the capital which they are throwing off? In its absence, you have a classic example where the company had great cash flows and no catalyst.

Your sole focus of whether to participate in a seemingly value trap could be you calling out the catalyst that will catapult it out of this situation.

Thanks for sharing. This is the sort of discussion that will benefit this forum. Not the type that I had with a Singaporean.

This allows us to see the various views of different investors. Also, presenting the fundamentals and the narratives related to these fundamentals highlighted the important facts needed for one to make an intelligent decision.

We invest in different styles. Thus, it is alright to differ in opinions. You are right from your own perspectives. Afterall, it is your money and your decision is the one that matters.

Thanks for sharing. Fragility of the business environment is an issue I look at too in investing.

In some listed company, the insiders make more money from the fluctuations of the share prices than from the business profits and dividends.

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Sslee

Is 3iii saying those buying capA must be mad and silly gambler?

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Games people play. These are: positive sum games, negative sum games and zero sum games. Know how to play each of these games.

Important to choose the games you wish to play.

Know the probability of success and probability of failure of the game you wish to play. In investing, this is the upside:downside ratio. Even more importantly, is to understand the consequence of the various outcomes from the game.

In Russian roulette, the gun has 1 bullet and the probability of being killed by the bullet is 1:6. Given the consequence of the outcome, one will choose not to play even though the probability may be in your "favour". 😀

Play the game with the highest probability of success (upside:downside of > 3:1) and with a high probability of big rewards (e.g. compounding at >15% per year over 5 years, that is doubling every 5 years).

Stay inactive, observe and learn most of the time. Act decisively and courageously when opportunity presents.

Airlines continue to be gruesome businesses.

Long term stock investors shy away from this industry.

Those with the ability to gain from investing in these "special situations" can profit from it. Those without the skill should just look for 1 foot hurdle to jump. 😀

There is a difference between investing and speculating. There is also speculating intelligently and speculating foolishly. Gambling is different from investing and speculating.