Consumer Hidden Gem
Marco - Sleeping Hidden Gem
Background
In 1970s, MARCO CORPORATION was established in Malaysia. MARCO took off its venture in the highly competitive timepiece industry. MARCO Marketing Singapore was established to perform similar functions for the needs of the market. In 1990s, MARCO's flagship went to a greater height. MARCO Worldwide Sdn Bhd was established to serve the region of IndoChina. Representive offices were set up in Cambodia and Vietnam. Later in the same year, partner network was established too in Myanmar. In 2000s, MARCO CORPORATION was awarded the ISO 9002 for its quality management system. The holding company, MARCO Holdings Berhad was listed in the Kuala Lumpur Stock Exchange (KLSE) Main Board in Malaysia. Its quality management system upgraded to ISO 9001:2000. Siam-MARCO was incorporated for the needs of business expansion in Thailand. Similar plans are being drawn for Indonesia, The Philippines and the adjacent markets.
Marco - specialist for timepiece and consumer electronics product for Malaysia
1) List of Timepiece / watch:
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2) List of consumer electronic:
WHY Invest in MARCO?
- > 40years of Massive Experience & Extensive Retail Distribution Network in South East Asia.
- Strong Growth since 2007 and projected Growth based on 1st quarter 2014 result will be more than 15%
- Net profit increased more than 300% since 2008 & its consistent & increasing every year!!!!!!
4. Healthy Balance Sheet ( Net Cash Company with positive cash flow for 9 years)
| CASH FLOW | @ 2013-12-31 | @ 2012-12-31 | @ 2011-12-31 | @ 2010-12-31 | @ 2009-12-31 | @ 2008-12-31 | @ 2007-12-31 | @ 2006-12-31 | @ 2005-12-31 | |
| CURRENCY | MYR | MYR | MYR | MYR | MYR | MYR | MYR | MYR | MYR | |
| Operating Activities | 10,427 | 3,720 | 18,561 | 5,220 | 6,259 | 512 | 7,359 | 2,019 | 3,373 | |
| Investing Activities | -139 | -119 | -39 | 135 | 582 | 867 | 822 | 195 | 573 | |
| Financial Activities | -10,495 | -2,935 | -16,485 | -2,671 | -2,671 | -2,635 | -2,600 | -1,576 | -110 | |
| Net Cash | -207 | 666 | 2,037 | 2,684 | 4,170 | -1,256 | 5,581 | 638 | 3,836 | |
| Cash b/f | 41,704 | 41,038 | 39,001 | 36,318 | 32,147 | 33,403 | 27,822 | 27,184 | 23,348 | |
| Cash & Bank Balance | 31,976 | 8,398 | 9,045 | 7,592 | 8,888 | 4,217 | 4,629 | 1,825 | 1,900 | |
| Deposits | 9,526 | 33,306 | 31,993 | 31,409 | 27,430 | 27,930 | 28,775 | 25,997 | 25,283 | |
| Overdraft | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Cash c/f | 41,502 | 41,704 | 41,038 | 39,001 | 36,318 | 32,147 | 33,404 | 27,822 | 27,183 | |
| Free Cash-Flow | 10,288 | 3,601 | 18,522 | 5,355 | 6,841 | 1,379 | 8,181 | 2,214 | 3,946 |
5. Consistent Payout of Dividend for the past 9 years with average dividend yield of 7%
| EST GROSS DIVIDEND PAYOUT ($) |
20,456 (2013) |
10,273 (2012) |
10,873 (2011) |
4,986 (2010) |
3,562 (2009) |
3,562 (2008) |
3,562 (2007) |
3,562 (2006) |
2,137 (2005) |
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| DIVIDEND PAYOUT (%) [3] | 129.03 | 68.63 | 75.38 | 55.56 | 65.79 | 81.97 | 89.29 | 116.28 |
76.92 |
6. Future Expansion / M&A / Catalyst:
Tan Sri Robert Tan Hua Choon, who has been on a selling spree this year, does not discount further stake sales in any of the other seven listed companies he owns, saying that he is open to "any opportunities" to unlock value in his companies. Full article: http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=331692:tan-sri-robert-tan-open-to-opportunities-to-sell&Itemid=3#ixzz3APQCTjrU
i) More BRAND of Time piece / watch to carry for MARCO massive distribution network in Malaysia, SIngapore, Thailand & IndoChina (Myanmar, Cambodia, Vietnam)
ii) Selling of Land (owned by MARCO) which is worth > RM 22 millions or maybe co-develop it?
iii) Injection of Time Galerie Chain Store into MARCO or MARCO already owned it???
Time Galerie is recognised as the largest timepieces retail chain in Malaysia by the Malaysian Book of Records and our retail chain outlets now stand at over 50 outlets nationwide! (which is owned by Tan Sri Robert Tan Hua Choon)
Description
We carry various of timepiece brands like Casio, Seiko, Bonia, Esprit, Alba, CAT, Dunlop, Hush Puppies, Swiss made brand like Tissot, Candino and others...Visit Time Galerie today to check out other exciting brands!
iv) Potential Re-value of Properties
Well, i guess its obvious that its time for this sleeping beauty to wake up! Baby G or G shock is the premium brand for KIDS and Young Adult!!! Dont you agree?? I will continue the next part....stay tune!!
This article is just my personal opnion and buy at your own risk.
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Discussions
5 people like this. Showing 13 of 13 comments
This counter many people said is a sunset counter. But if compare to the many lose money counters, our sunset Marco light is the most beautiful one. Please refer to the volume recently, just like what RobertTan (not Tan Sri, just i3investor friend) said, ten ten tententen, more than ten million shares change hands every trading day, but still stand on 18.5. Anybody dare to follow?
2014-08-16 10:49
must be germ. furthermore not buying into casio .. now people use iphone as watch and too many pasar malam imitation hihihi kikiiiki kokokkookk
2014-08-17 03:12
EVerything in this world will have imitation, please tell me anything that doesnt have imitation....
2014-08-17 07:06
But do you know the original function of G Shock & Baby G which imitation cannot copy? If you think this is just an ordinary watch then you must be mistaken...casio G Shock & Baby G had successfully created a market segment that this Brand is the Leader of all Time. Please name any competitor for kids/young adult...
2014-08-17 07:09
But for Luxury Branded Watch, you can find there are a lot of Brand competing each other and dont tell me ROLEX or other luxury brand dont have people selling imitation...
2014-08-17 07:11
MARCO had a very good management team and its not easy to had such strong good record of financial performance. By inviting young director on board, there must be some changes for a better future in MARCO. But it takes at least 6 months before a new business direction can be seen or announce.
2014-08-17 07:15
Daz Ng..just want to ask whether you got noticed there is a line item -"accumulated losses" under the equity section in the balance sheet?? Will this impacted to the fundamental of the company??
2014-08-17 14:15
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I don't wear watches nowadays...can blame it on smartphones. Watches are more of an accessories (to show off) I guess, then again I maybe wrong!
2014-08-16 07:02