Yinson is probably a of the most misunderstood company. Part of the reason is due to the accounting standard requirements for its EPCIC for FPSO MQ, Atlanta and Agogo to follow accounting lease instead of financial lease. The main difference is recognizing of the under construction as revenue thus resulting in recognizing of construction profit and need to pay taxes as well. All the financing interests for under construction FPSOs also charge as operating expenses, thus resulting of massive -ve cash flow. To sum it up all under construction costs and financing expenses, are operational cash outflow. Put it in a simple term, it is like building a shopping mall with a fixed rent and tenure but all construction cost and its bank interest are treated as cash flow.

If Yinson is really operational -ve cash flow, none of the financial institutions will keep lend it money. Yinson business model is building then owning of assets with contractual rent and tenure. It is like IPP those day.

Yinson also re-invest its capital aggressively for the future at the expense of the current profit. Market valued its renewables and GreenTech at zero, yes is zero. Instead they have invest a lot of capital and these assets definitely not worthless.

Figure out what work in long term is a very powerful mental model.

Just think of what is going to work in long term. What is a sustainable business? there are few business models are work in long term. A simple and working one the low-cost producer. One of my favorite.

Harta is the lowest cost producer yet the most innovative glove manufacturer. They focus relentlessly to reduce cost, improve productivity and and quality of the product.

They are the 1st glove moving into Industrial 4.0, they digitized their plants (so far 3 plants have been fully digitalized).

They are trial running their automation of glove packing process, which is the bottleneck of the whole automation process currently. This very reduce their manpower required to be reduce by 20%, thus reduce cost.

They are the most efficient player that able to produce 50,000 pieces of glove per hour which is unmatchable.

They spend more resources that other players on R&D, and implement best practices. They are the 1st player that produce medical nitrile glove commercially. They achieved multiple industry 1st.

They focus on company culture and DNA that keep improving and innovating. Being a low cost producer is good but others will catch up one day. But develop a culture and DNA that keep improve on efficiency, lowering cost and innovating are far more crucial in long term.

Harta is a one of the most well manage company in Bursa, its management is honest and skilled. Instead of talking big, they focus on business. They always under promise but over deliver.

Glove is going to have a secular growth post covid, plus it is already a grow industry.

Harta have so many correct matrix as an investment.

Don't focus on share price but its business. They definitely will do well in future