The Edge's 2011 interview with Mr. Yeoh Keat Seng
I found this 10 year old article particularly insightful. https://www.theedgemarkets.com/article/yeoh%E2%80%99s-investment-philosophy
The investment ideas of looking into long-term trends of companies, optimising probability and returns, earnings predictability, growth at a reasonable price, perpetual holdings, etc is very relevant, even today. Much can be learnt from this article, even examples of stocks and names of persons mentioned in that article can be excellent research material.
I have no idea whether Mr. Yeoh Keat Seng is still managing Kumpulan Sentiasa Cemerlang (KSC). However, what is important are the lessons that can be learnt from them.
What stocks do KSC own?
Based on https://investingmalaysia.com/shareholder-kumpulan-sentiasa-cemerlang-sdn-bhd/ , KSC is among the Top 30 shareholders in AEONCR, KENANGA, MBMR, HSL, POHUAT & MYNEWS. (KSC might have increased, reduced or disposed their stake since then, and such data on their holdings might be outdated now)
Companies with "Credit" stated in its name, normally has some lending/financing business. AEONCR is in the consumer financing business. It has Settlement Business (like AEON Visa Card) and Product Financing (like motorbike financing). Revenue, profits & dividends in recent years grew at a relatively stable pace. Covid-19 might have disrupted its momentum, but AEONCR should improve as the economy opens up and more goods are purchased. The digital banking license might be a potential catalyst, if successful.
The surge in 1st time retail investors in participating in the local bourse brought KENANGA's stockbroking segment soaring to multi year high. However, retail investors' momentum soon ran out of steam as shown in recent quarters' dipping revenue & profit. Rakutentrade's high growth remains
MBMR is involved in motor trading, especially Perodua vehicles, with a smaller segment from auto part making. Dividend yield is currently very attractive. The devastating pandemic may have restricted auto buyers' budget to more affordable local marques like Perodua. This should bode well for MBMR, which should be supported by the continued exemption of sales tax.
HSL is a marine engineering company. Despite having orderbook of RM1bil+ at current market cap with strong cash position, HSL's financial performance has fallen compared to its better years in the past. Its shares are thinly traded compared to other stocks in this list.
POHUAT is a leading furniture exporter in South East Asia. 96% of exports go to US & Canada. A few months ago. Mr. Market's sentiment on POHUAT dampened as Vietnam ordered temporary closure of non-essential businesses due to Covid-19. Operations should normalise, & recovery should be in place as business resumes.
MYNEWS share price has been gaining traction since May despite posting consecutive higher losses due to MCO. Perhaps the highly-anticipated opening of its Korean CU stores and being a strategically located CVS convinced Mr. Market of its future potential growth. (Annual Report CVS shortform for convenience store, I suppose) Unlike other cash rich companies on this list, MYNEWS has low cash, in net debt.
The six stocks listed above are not among the Top Trending 30 stocks of klse.i3investor.com. Some are even unknown to most investors, just like KSC. However, just because something is not popular, does not mean it is bad.
Disclaimer: The author does not have interest in the stocks listed above. This article is not tailored financial advice, but general stock sharing. Please do further due diligence. The author disclaims all liabilities from readers. The author hase no interest whatsoever with KSC, nor obtained anything from KSC from writing this article.
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