I agree with what Danny and Petnch said. Just topped up to this counter. Personally,I am quite impressed with QL’s business model la,here are some of my points of justification as a new investor.

1.) As far as surimi is concern, QL is the largest processor in Malaysia,in fact most of its revenue is generated from its marine based products.In a way,they monopolize the surimi sector.

2.) Family Mart has gotten the attention of young generations due to its variety of food and beverages. No other convenience stores in Malaysia offer a place to sit down and have a quick meal.

They have their signature oden, which utilizes QL’s own surimi products,this increases profit margin and reduce sales costs,no other franchises have the capability to do the same.Beverages are priced reasonably compared to higher end coffee shops like Starbucks,so can cater to wider spectrum of customers.

From time to time,they come out with new items like matcha sofuto to catch public attention,that’s the innovation and marketing part other convenience stores can’t compete with.

Very often people go into convenience store because they are in a hurry and want a quick meal in a comfortable environment, Family Mart knows that and does exactly what it needs to.

Overall environment is clean and bright, with specific “aroma” of its own. It feels comfortable as soon as you walk in to the stores.

Quantitative analysis wise, their profit after tax and ROE have increased stably over the past 10 years. They have a lot cash to weather through tough times like the pandemic we are facing now. So good cash flow + healthy debt equity ratio <0.5.

Now the bad part,I’m not quite happy with as an investor.
1.) their profit margin has reduced in recent years,esp in the live poultry sector,I’m afraid that might cap earning potentials.
2.) dividend payout doesn’t keep up with company growth despite having stable growth for the past 10 years.
3.) PE 63 (however I do agree with Danny that good things don’t come cheap,Amazon,Apple,Coca Cola all have high PEs,based on conventional logic. Are they any less profitable?)

With internet, all of us are just one click away to have access to information that everyone else can have. Do you think you’re the only one/first to “discover” “undervalued” companies?

Final verdict: I believe QL has a lot more potential to grow.They may even take over 7-11/MyNews in time to come if they continue to grow at current pace.For that,I’m willing to pay a premium for it,being fully aware that it may take time for someone to acknowledge a company’s true value,but then that time you might have to pay a premium on top of premium already-la.

The PE is crazy high at 60+

EPF jacked up the price at 5pm,they trying to lure retail investor in eh?

Those who bought today will get the bonus issue?