Dear Geshen follower and stakeholder.

Background
https://gscorp.com.my/
Check it out yourself, I’m here to share some idea about this company, and why it is worth to invest at this junction.

WHY Mr. Chan and spouse want to convert RCPS into OS in April when GESHEN share price is only around 40sen, they can just lapse the RCPS and take back RM 18 mil in cash. In other words, it means the boss inject RM 18mil capital into the company even the transaction happened in year 2015.

It means Mr Chan very confident towards the company future prospect.

WHY!!!WHY!!!WHY!!!

Reasons behind of converting RCPS into OS.

1. Good prospect
https://www.thestar.com.my/business/business-news/2020/07/18/ge-shen-sees-better-days-ahead

YA2020
Qtr 1-Company were gearing up for the ramp up of key projects
Qtr2-Company gearing up to meet increased customer demand as several new models was starting to go into mass production phase and resources have to be prepared to meet the ramping up.
Qtr3-Go into mass production
Qtr4-Economies of scale

As a small EMS player like GESHEN, R&D work is very important and it takes time (Ideally 1 year). It incurs a lot incidental costs before it goes into mass productions, this is also why GESHEN not doing well in 2019.  YA 2020 should at least break even.

2. Mandatory takeover (It happen once in year 2015 and the takeover offer at RM0.81/OS)

https://www.thestar.com.my/business/business-news/2015/08/13/geshen-corp-gives-details-on-takeover-offer
After said transaction Mr Chan and spouse own a total of 69.79% of total NOS, Louis own 3.62% and treasury share is about 3 mil share. So, the floating unit in the public is about 26.59% (28mil share inequivalent to RM 26 mil).
How much is the reasonable takeover offer (NTA RM 0.87)???
NTA X 1     = RM 0.87
NTA X 1.2  = RM 1.04
NTA X 1.5  = RM 1.31

PE 10     = RM 0.82
PE 12     = RM 0.98
PE 15     = RM 1.23
PE 20     = RM 1.64

As an EMS player PE 20 is consider reasonable

Regards

ThePorfessor