the comparison is unfair.

ICAP gets to boast that its NTA is at RM3.83 which is MARKED TO MARKET

Meaning its Top 30 shareholdings get to be VALUED at MARKET SHARE PRICES as at 28 FEB 2024!!

Insas Bhd is not a Closed end fund but FUNDAMENTALLY it is a collection of business much like ICAP. If Insas get to do the same MARK TO MARKET at 31 DEC 2023, it valuation will be north of RM5.38.

Restate:
ICAP
NTA 3.83 MARKED TO MARKET price at Feb 2024.
Share price RM3.30 (22 May, 2024)
Trading at 14% discount

Insas
NTA 5.38 MARKED TO MARKET
CURRENT PRICE RM1.08
Trading at 80% discount!!

Assumptions:

I value Insas collection of businesses at current market prices like Inari at 3.22, M&A 0.38 and others. I have to admit there could omission of other stocks I didn’t review under Insas.

Disclaimer: Please do your own research before investing as my opinion are well, opinion.

Disclosure: Owns both Insas and Insas WC and may continue to accumulate on share retreat.

As at Feb 2024, the NTA is at RM3.83 vs Share price at RM3.30 which is 13% discount to NTA.

But we mark to market the way ICAP Biz is “likely” to value their
FEB 2024 :
NTA 3.83
CURRENT SHARE RM3.30
Trading at 14% discount

Insas
NTA 3.57
CURRENT SHARE RM1.08
Trading at 70% discount !!

Now you prefer buying asset at 70% discount or 14% discount?

That is not all.

Insas has portfolio holdings.

The elephant in the room is Inari Amertron which at BOOK VALUE is about RM550million. Yet Inari is now at market value RM1,770 million which is 322% higher than its current BOOK VALUE. Yet, there is ZERO Management fee. How about that? Thong interests is aligned with minority shareholders where he stands to gain from share price appreciation.

This far exceeds the ICAP Biz performance with management Fee at 1.5% on Asset Under management (AUM).

Don’t underestimate the power of compounding is severely inhibited by costly fees. In USA, the Index link fund charges 0.3% AUM, 80% cheaper than ICAP.

Well, justified for investors as they see ICAP Management as talented and can beat the market.

If that is so, what about Insas, which has unrealised gain in Inari >RM1,160 MILLION (RM1710-RM550m) ? Repeat - NO INVESTMENT FEE.

Good holiday to spend time with love ones.

I admire Icapitalbiz under CEO Tan Teng Boo management. Analysed the fund on 18 Biggest stocks valuation with Kellington Bhd being top holding at RM72.37million with average purchase price at Rm2.55/share vs current price 3.03 or 18% gain.

Interestingly, only 3 stocks are performing well namely SAM Bhd, Kellington and United Plantations recorded gains of 11%, 18% and 30% respectively . In other words 15 other stocks analysed are at loss or just breakeven.

Shareholders in ICAPBIZ are paying management 1.5% + admin expenses + marketing + roadshows expenses to have this performance.

Now, if I benchmark against Insas Bhd , I get quite different results.

Insas investing in Preference shares are very similar to Berkshire Hathaway subscribed US$5Billion Preference shares in Goldman Sachs during the Financial crisis, 2008 with coupon rate 10%.

Preference shares are the FIRST in line on debt repayment.

Astute business move.

If you can find another Mr Thong able to increase NTA from 942 million to 2,474 million over 15 years ie 2011 to 2024 which is a 26.3% increase a year , let me know.

For now, Thong did terrific job adding value to company.

Golden rule is if someone criticises please come up with BETTER companies to invest. We all open to it.

On Cap Biz with management fee 1.5% , after 10 years, the compounding costs turns out to be >30% of the net profits.

On Insas with management fee 0% , after 10 years, the compounding costs turns out to be 0% impact on the net profits.

nsas & Insas WC which have holdings of

Net cash at RM1.08 per share.
Investment at BOOK VALUE for Inari at Rm550mil even though at market it is valued at RM1,600 million. Yes RM1.6 BILLION

OTher investments include
F&B
Fashion
Securites listing services for ACE
IT.

Just the BOOK VALUE it is at RM3.56 as per Dec 2023.

Now it is trading at RM1.03.

Accountants DON'T value investment at current market share price. Yet the investments under Insas is at RM6.38

At Book value, you are buying a RM1 for 30sen

At Market value , you are buying a RM1 for 12sen

Talking about margin of safety, this is one rare DIAMOND

Disclosure: I own Insas, Insas WC, FPI and UCHI amongst others. Please do your due diligence before investing

ICap Biz repeatedly state that they are best measured according to NTA. management & Investment fees at 1.5% pa on Assets Managed. Regardless of their performance, Mr Tan TB gets a cut.

Insas i termed as Berkshire Malaysia -bc it also is a holding company. A mistake to measure on only on EPS

I’ve been investing since 1992. Never seen strong fundamentals with net RM1.24 cash per share or RM860mil over share price at RM1.02 (5 May 2024) or RM707mil.

If you include other assets valued at BOOK VALUE the price is RM 3.57 per share or RM2,526 million.

If you value Insas investments mark at market price, the value is much higher. Experts like SSLee will tell you how much it is at market valuation of Insas investment.

In other words, you are buying a RM1 for 30sen.

Strong management team to run each business segment.

This is Malaysia Berkshire with very high intrinsic value to market price.

disclosure: owns Insas and Insas WC and continue to buy in near future.

Another interesting Corporate Politics, someone is testing the water to see the exercising Warrants 49,000 even though it is OUT OF MONEY at current price RM1.03.

If Thong is careful, he will have enough Warrants to convert his INSAS WA to secure >50.01% ordinary shares from current 32.9%.

SSLee is expert to calculate THong’s true holdings via his friendly allies or proxies.

WHO IS SELLING?

Likelihood are syndicates who are selling to push down prices and force weak (Note 1) hands to let go where they can accumulate at bottom and then pump up the price to dump later at higher prices.

Note 1: WEAK hands include
[1] emotionally investors who thinks the end of world coming
[2] margin calls
[3] paronoid investors who thinks the price will fall to zero.

of course I want to see Insas to go up with NTA value at RM2.56 at BOOK Value but if it marked to market that is easily above RM4.28 per share.

Personally, however, I prefer to see Insas comes down so that I can chance to buy more.

I know it will go up with Inflation, AI, America-China Semiconductor war, record FDI to Malaysia.

I don’t get euphoric if it goes up and neither do I get depressed if it comes down.

Buy and Hold Wonderful Businesses and attractive prices.

Let’s hope Insas breaks RM1.00 or better at 90 sen. Sell your IPHONE and use the fund to buy a RM550 Infinix smartphone and the balance to Insas.

Disclosure: I own both Insas and Insas WC and continues to accumulate at attractive prices

Bought more this week.

Next week , I will join You - SSLee.

Good opportunity pick on the cheap.

Buying A Dollar for 30sen

Investing successfully is a lonely road.

If someone follows the crowd, then the performance is average with them.

You have to be right when you invest and wait ALONE. - Howard Marks,CEO Oakstree, Top Tier Fund manager, >50 years.

FPI with war cash reserves RM450million can declare dividends or better shares buy backs.

This year, FPI has extraordinaries gains.

Cap it at RM50million a year, it is sustainable foreseeable future

FPI now guarantees (word I seldom use) a 7.2% div yield if you invest BEFORE 8 Apr. 2024.

Told my nephew last weekend. the price merely inched up 3 sen to 3.14

Anyway, this post belong to FPI chat room.

There are other attractive Dividends if you want them.

Disclosure: Owns BOTH INsas and INsas WC, FPI amongst others.

Caveat Emptor

you may want to see my other posts

There is FPI which now guarantees (word I seldom use) a 7.2% div yield if you invest BEFORE 8 Apr. 2024.

Told my nephew last weekend. the price merely inched up 3 sen to 3.14

Anyway, this post belong to FPI chat room.

There are other attractive Dividends if you want them.

Disclosure: Owns BOTH INsas and INsas WC, FPI amongst others.

Caveat Emptor

On Jayatiasa, with PE- Ratio at 7.2 is the lowest among the Plantation stocks.

vs.

TAANN at 10x
Genting Plantation at 27x

Makes sense on your move

Everyone with business mind - appreciate SSLEE sharing.

To win-win info sharing.

I am wondering what are your arguments in favour for

Jayatiasa?

I do read this forum regularly but ignore noises. We are business people exchanging ideas to generate profits.

My wish is ALL OF US make profits and use it for our needs and family

Messrs SS Lee

Amazing you are prepared for the risk of NASDAQ meltdown. If USA crashed by 30%, so will the rest of the world.

With Dry powder, you are in position to scoop up huge bargains esp if KLSE falls below 1,000 KLCI

You are truly master in investing.

Respect.
+++++++++++++++++++++++++++++
Reposted:
Mike-tikus,
Don't envy ya, I am holding 40% cash and 60% equity in my trading account.

The big four in my portfolio now are:
Jayatiasa
Insas
OSK
Pantech

Investment is booming. The Penang state attracted RM60.1bn ($12.8bn) in foreign direct investment in 2023, more than the total it received from 2013 to 2020 combined.

“It’s a rush. It’s not only Chinese companies [setting up in Penang]. It’s Korean, it’s Japanese, and it is western,” says Marcel Wismer, Kemikon’s chief executive. “And all of this is related to the tech war between the US and China.”

2nd Level Thinking : while the rising tide will raise all boats, choose semiconductors players that are established, cash chest to invest and supply to newcomers. SOme firms like Inari, MPI and GLobetronics are set to disproportionally benefit from the investment.

Source Malaysia: Invest Penang, 2024, The Surprise Winner from US-China Chip Wars. Article Date: Mar 11, 2024

Investment is booming. The Penang state attracted RM60.1bn ($12.8bn) in foreign direct investment in 2023, more than the total it received from 2013 to 2020 combined.

“It’s a rush. It’s not only Chinese companies [setting up in Penang]. It’s Korean, it’s Japanese, and it is western,” says Marcel Wismer, Kemikon’s chief executive. “And all of this is related to the tech war between the US and China.”

2nd Level Thinking : while the rising tide will raise all boats, choose semiconductors players that are established, cash chest to invest and supply to newcomers. SOme firms like Inari, MPI and GLobetronics are set to disproportionally benefit from the investment.

Source Malaysia: Invest Penang, 2024, The Surprise Winner from US-China Chip Wars. Article Date:
Mar 11, 2024

Is it true that a full tank of Petron fuel gives more mileage compared to Petronas?

Petron not only have better mileage and best cash back if you use Public Bank-Petron card. this matters to us drivers - 98% use gas combustion engine. For Tesla co-horts, this is irrelevant.



Source: R Bala (2024), Focus Malaysia, Is it true that a full tank of Petron fuel gives more mileage compared to Petronas? Visited on : 9 March 2024

06/03/2024

SSLEE - reposted
Last quarter financial result Insas report net gain on disposal of shares in associate companies: RM 9,445 ,000 by selling 5 million inari form Insas Technology to Insas Media Lang Limited

Analysis
On 27 Dec, Inari closed at RM3.00 per share. Sold that day amount 5,000,000 for profit of RM9,445,000 means profit per share is at RM1.89. Costs holding is RM1.11 per share.

Good that we don’t have Cap Gains Tax , (yet?). with 558.6million, unrealised capital gains sit at cool >RM1.11 BILLION (spell with a “B”) with Inari at RM3.10 now.

Thong is astute businessman. Waiting for Bill Tan to advise him if next IPO or Acquisitions like Inari coming up.

Thank you SSLee bro.

A question, How do we know that Insas holding costs is at RM1 and selling Inari at Rm2.90+ per share yields about RM2 profit per share?

I note that Insas takes profits on Inari by selling 10million shares.

I am unsure how much realised profits it will be.

But with 554million Inari shares, selling 50million a year to crystallise profits over 10 years. That is a good run

What about other wonderful businesses? Moats are deep.

Rare opportunity

Important is Insas generating profits consistently which is bulky instead of consistent profits performance.

Profits range from RM50mil to RM200mil a year. That is fine by me.

Cash pile RM1 BILLION (Spelled with a “B”) are waiting for deployment in
= Financing business to the likes of AEON Credit, RCE Cap., ELK DESA
= Participating in M&A’s IPO clients in private placements
= Acquiring private assets
= Acquiring Local Bursa opportunities
= Acquiring overseas opportunities especially Vietnam, China, Indonesia.

I admire Insas Managing directors business acumen

Disclosure: I own Insas and Insas WC, amongst others. will continue accumulate in near future.

Berkshire is priced at 1.40 times over its NTA.
Contrast with
Insas in priced at 0.34 times over its NTA.

Rare opportunity.

Defensive strategy. Thong has A LOT at stake. This is the first time over in Bursa I see Billionaire by assets but not by Market valuation.

Berkshire is priced at 1.4times over its NTA. But USA do have non-GAAP valuation of marking shares it owns in NYSE/NASDAQ to market if the company choose to do so.

What is happening to Semiconductor sector worldwide? NVIDIA’s orders are robust, pushing TSMC’s 3 and 4-nanometer production capacity to near full utilization.

Semiconductors are growing on the tear. Expected 24% growth in 2024.

Inari is attractively priced as it has strong moats with >22% net profit margins.

Source: Trendforce (2024), NVIDIA Reportedly Overwhelms TSMC with 3 and 4-Nanometer Orders, Article dated: 2024-03-04

Disclosure: I own Inari via Insas & Insas WC and may continue to accumulate in next 72 hours of trading

NVIDIA’s orders are robust, pushing TSMC’s 3 and 4-nanometer production capacity to near full utilization.

Semiconductors are growing on the tear. Expected 24% growth in 2024.

Inari is attractively priced as it has strong moats with >22% net profit margins.

Source: Trendforce (2024), NVIDIA Reportedly Overwhelms TSMC with 3 and 4-Nanometer Orders, Article dated: 2024-03-04

Why change to order shares? Good question.

I can think of two scenarios:
A] didn’t realise the slight premium Warrants over Ord shares.

or

B] Testing the water to see how fast the conversion takes. Seeing the Volume traded on Warrants are exceptionally high, this is a takeover bid? Increase ordinary shares to gain control. Propose EGM to vote restructuring exercise.

How is UCHI similar to Berkshire’s subsidiary See’s Candy [SC]?

SC is major favourite sweet candies with major pricing powers. When you receive visitors in USA who brings a bag of SC, you are delighted.

SC couldn’t do much with its retained cash pile. so it pays dividends to Berkshire.

Similarly, UCHI couldn’t find high ROE projects and thus pays out >90% of its retained earnings while it is growing single digit percentage over 9 years.

Cash generating business. you receive cash and use it to invest elsewhere - compounding effect.

Wonderful business.

Every Uncles and Aunties are so glad when they receive a Fixed Deposit certificate with payback 4% aka interests income. It means, you need to wait 25 years to get back your principal to break even ie 4% x 25 years = 100%

What if you are given Certificate with payback 12.7% returns per year? Well, that is the payback period of 8 years for holding Insas Bhd.

Q1 = 09/23 : PAT RM19.8mil
Q2 = 12/23 : PAT RM23.9mil

Simple extraplolation for over FY 24 EXCLUDING the extraordinary gains disposing Inari and M&A last Jan 2024, RM100mil brings PER 7.9x

Isn’t PAT more important than speculating why certain expenses are there? Fin Statements are already audited?

Share Volatility is not risk. Share prices movement are merely based on investors emotions.

Risks are possible events that may happen to the BUSINESS.

Inari: What is the probability of that major clients like Huawei (China) and Apple (USA) cutting back on orders?

M&A: What are the probability that Malaysian SMEs cease raising capital via IPO on ACE Board?


Ho HUp : What are the Probability that residential units remain unsold over 2-5 years?

29.5 total dividends

7.2% yield at 4.10 price

Very similar to Berkshire subsidiary See’s candy

MPI Is The oldest listed semiconductor maker in Bursa and rose 40 Sen to RM29.70.

Top 40 USA chips maker recorded gains in revenues and share prices.

world leaders ASML chip machines maker rose to 15 year high. The beginning of semi conductor stocks.

Inari is just a droplet from the bucket. What if it too received increased major orders from China? USA? Germany?

When the stocks doubled by R 12 billion, imagine what happens to Insas stock? INSAS OWNS almost 15% inari. A cool RM1.5billion added valuation.

Source :
Max Juang (2024) , Q3 Earnings Roundup: Western Digital (NASDAQ:WDC) And The Rest Of The Semiconductors Segment.
Article dated January 23, 2024

IPO market in Malaysia to remain robust in 2024, especially for consumer, tech-related industries, says Deloitte Malaysia

The initial public offering (IPO) market in Malaysia is expected to remain robust in 2024, supported by a strong pipeline of offerings and healthy institutional and retail investors' appetites for companies with good growth propositions, particularly those in the consumer and tech or tech-related industries, according to Deloitte Malaysia.

Verdict: expect robust business year for M&A and thus add value to Insas.

Insas has cash as war chest of RM1 billion which it can easily subscribe via private placements if promising IPO or the Next INARI.

Tail winds for Insas.

Source: By Emir Zainul, 2023, theedgemalaysia.com
Article dated: 16 Nov

I don’t disregard black swan events in 2026 that affects share prices. Be prepared for it protect yourself from the downsides.

Do notice that Insas Key Directors are sitting on Inari , M&A BOD to guard their interests.

If insas doesn’t have moats, why can the BOD significantly influence Inari, M&A BOD decisions?

Similar to Sime Darby moats by owning Toyota franchise n PERODUA brand,

Good point to emphasise risk of warrants out of money.

Agree that cash is not moat

Insas moats is in its collection of businesses.

Insas WB timing is different from insas WC.

WB expired when inari was worth rough estimate RM5billion

WC is expiring at 2026 with inari Ametron already valued at RM12BILLION.

What happened to WB is not necessarily mean same fate as WC simply because insas has added assets and BOOK value worth BILLIONS!!!

Messrs SSLEE and other high dividends seekers ,

Profitable information. I’ve identified two stocks in other forum group that pays high dividends.

One of them is CONFIRMED paying 7.6% yield with ex date April 8. Act quick for low hanging fruits harvest.

Much higher than Insas 2.5 Sen or 2.1%

I’m not an expert in charting.

But isn’t it true that insas has stayed above 90sen for over 3 weeks and stabilise at new base 1.10-1.26?

If someone thinks insas business moats will deteriorate in next two years, then it is better not to buy BOTH INSAS and Warrants.

For holding warrants you stand to gain 300% more than mother shares.

Risks?

Warrants will expire in Jan 2026 and if insas shares remain RM1.18 , then insas warrants is worthless or out of money.

Questions : do you think more investors will come into Bursa, semiconductor, property sales improvement?

If so, with increasing profits of Insas with future PE R at 5x, will it appreciates in next two years?