Investors are finding it harder and harder to muster courage to invest in the stock market, especially since the glove and tech crash since mid-2021. But what stands on the other side of fear is usually represented by opportunities.

And here comes a rare opportunity in which investors could tap into, something I would even call a diamond in the rough (stock market condition).

Just by looking at Kanger International Berhad’s price movement, most investors would first deny themselves with thought process such as “Tis but a penny stock”, “A downtrend had formed” and more. Yet, seasoned investors would be able to identify a consolidation had occurred, and it is very important for one to look into the books of the company.

With an insanely low price-to-book ratio of 0.08 times, Kanger International is amassing RM0.500 worth of NTA per share, and yet the market is valuing the company at a mere RM0.040.

Sure, the not-so-satisfactory financial results of the company sure had stirred negative sentiments against the company. Nonetheless, you’d be doomed if you invest purely on instincts.

Let’s first dive into the non-current assets of Kanger International in their Q4FY22 results.

I want to draw your attention towards the Investment Properties part of the company, in which they held approximately RM71.43 million worth of investment properties as at 31^st March 2022.

“What are these investment properties?” You might ask.

Back in February 2021, the company had block purchased Antara @ Genting Highlands by Aset Kayamas with a total value of RM142.90 million, and as I’m not an accountant by practice, I do think and assume part of the assets were converted into goodwill for certain reasons – perhaps the group is ready to monetize the assets.

I wanted to re-align your focus back to the value divergence between Kanger International mere RM24.10 million market capitalization against RM71.43 million worth of properties. Would you buy a property with close to 66% discount?

Bet you would.

The same applies to Kanger International too. From an outsider point of view, the company would eventually need to liquidate their discounted properties in exchange for cash while the property market prices are booming, let alone the ones located at one of the country’s famous tourism sites, the prices had surely soared.

Unfortunately, there wasn’t enough data to be presented on iProperty.com to showcase the price movement of the said property.

And despite all of that – just imagine if the company would liquidate say 20% of their assets. How would that impact the company cash flow, and how would the profit look like in the coming quarters?

Moreover, with a dirt-cheap price-to-book ratio of 0.08 times, the risk associated with investing in Kanger International now is extremely low.

Therefore, I would like to add Kanger International into my 2022 value hunt portfolio, and I have to admit that I’m currently an investor for the company, yet I hope this article would present a extremely good investment opportunity to you.

Cheers!