Consumer Hidden Gem

Marco - sunset or sunrise?

Daz Ng
Publish date: Sun, 17 Aug 2014, 08:48 AM
Daz Ng
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Price Stagnant, but earning growth consistently
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Good Morning everyone on this quiet sunday. Stock market had rebounded but some stock is not moving yet, however, with foreign investor are buying in KLCI for the past week, i suppose KLCI will find its support and move higher eventually. 

Eversince i started blogged about MARCO, there are a lot of people keep saying it is a sunset business already, why bother to invest?? Well, if we look closely enough, you will still find that first world advance economy like US or EUROPE, people still buy newspaper in the morning and wear watch to school or work..and I like to wear G shock for my workout & sport and most interesting part is that student need a watch because they dont allowed to carry cellphone to school. My daugther is 5 years old and i would only provide her with smartphone when she already in form 5 in high school. So, why is it a sunset business?? Well, maybe we should start treating buying stock/share is like starting your own business, we have to be able to see value in a business and analyse the management of the company and most importantly the financial track record of the company. 

Today, i would like to share some of the direction/business plan of casio in 2015

 

(a) In the timepiece business, Casio will launch new watches with the latest technology. They will include hybrid models featuring GPS and radio-control, as well as models capable of connecting to smartphones with Bluetooth®. The Company will
further strengthen its six main watch brands, including G-SHOCK, to keep growing the business and maintain high profitability.
(b) In the electronic dictionary business, Casio will expand the business and maintain a high level of profitability by strengthening models for elementary school students in the domestic market while expanding its line-up in digital vocabulary books. In overseas markets, it will tap into ASEAN markets as it seeks to expand its business.
(c) In the systems equipment business, Casio will improve profitability for projectors through cost reduction and the introduction of new technology.
(d) In new business, the Company will work on expanding large orders for its CASIO Signage business. It will also introduce Art Clocks and expand painting contents in the digital painting business.
 
 
Sales figure of casio in ASIA
 
Asia
(millions of yen)
93,764
(03/2009)
79,707
(03/2010)
83,063
(03/2011)
82,658
(03/2012)
88,731
(03/2013)
115,554
(03/2014)
% of Net Sales
18.1
18.6
24.3
27.4
29.8
35.9

 

Well, I guess the information provided is clearly stated Casio Business Growth planning and Direction. When we talk about MARCO, people tend to relate it's business to just Timepiece/watch. Its in fact more than that, we fail to see the expansion in stationary network and sales. Can you imagine if primary school in malaysia start using the digital vocabulary book/dictionary and every student is having one? with a good relationship with government, its possible. It will be like every student now carry casio scientific calculator and in the future they might carry the digital vocabulary book/dictionary. There are more growth that havent mention, the data projectors, digital art clock and painting, and music instrument!!! 

Is this a SUNSET Business?? can imitation copy the special feature of G shock or Baby G with innovative new technology? Do you allow your kids to carry smartphone to school and risk losing it or put her at risk to snatch robbery? does school allow kids to carry handphone? I guess you already have the answer in your HEART! Happy Investing and have a fantastic weekend!

This article is purely my personal opinion and buy at your own risk.

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