Both MPI and Inari have war chest of RM800M and RM1,800M to expand. MPI is more conservative and prepared to serve the existing orders-clients whereas Inari R&D are working with major clients esp Huawei (nicknamed as Apple of China)

EPF is aggressively accumulating Inari which augurs well for Insas as it only adds profits via Mark to market. Expect >RM100mil profit report in Q4 2023 and Q1 2024.

That is PE R of 6x. can you find another one with this ultra low price and high value firm?

2023 TOP 30 shareholders include Fund Managers

Emerging Market Core Equity Portfolio DFA Investment Dimensions Group Inc owns 4,413,602shares

Standard Chartered Bank Malaysia Berhad (Wealth Management) (Asing) owns 2,683,300 shares

Dimensional Emerging Markets Value Fund owns 2,500,000 shares.

2022 TOP 30 shareholders naming Fund Managers = NIL.

That explains why the shares are rising with now in 2023 fund managers have accumulated almost 10 million shares.

Many fund managers are allowed to invest provided the market cap is above RM750mil. At current valuation, expect more fund managers interests to start pouring in

Remember, stocks are like pendulum swings. It will rise above the fair value, way above in which you can dispose at large gains - very large.

Market demand and supply. Corporate restructures will find Insas increasing attractively as it is sitting on cash reserves RM1.37 or RM950mil over and above its WHOLE market value at RM825mil

Screaming buy. Thong knows his 32.9% is still short of 50% simple majority control. He is likely to have proxies to hold shares on his behalf, legal although not exactly ethical.

How would you like to buy a landed home for RM825k that comes with RM950k cash?

The upside vs downside potential is 4:1.

Disclosure: I own Insas and Insas WC and may continue to accumulate.

SSLee,

Of course if you found better investment, it makes sense to redeploy your finances there. Make sense. Every investor has different risk appetite.

I was ex-colleague of Managing Director Bill Tan Choon Peow of M&A subsidiary during the KPMG days. Must say, he was one of the top talents then when we were in Audit 1 Division. Strong Kudos to Thong to retain such talent.

I will be delighted to own Insas and can assume that Bursa has to close for 10 years. You own wonderful businesses as very attractive price.

Caveat Emptor (Let the buyer beware - please do your research as this is not construed as buying or selling)

Thong has much to lose if Insas is a takeover target or the price declines which reduces his net worth. Thong rightfully is suppose to be a multi-billionaire.


That is why my confidence is in Insas as opposed to firms ran by well dressed and articulate CEOs without any vested interests in shares.

Market is voting machine in short term but weighing machine in long term. if you see the prices 10 years ago, it is at 52sen to now at 1.20, over two-bagger gain.

Of course, if anyone wants to sell Insas, I will be delighted. I am still accumulating.

To me, Insas is a bridge which is unlikely to collapse financially.

Remember that Major Shareholder Thong has “Skin in the game” (Nasseem Talib famed author of Black Swan) with almost 33% of Insas. He stands to gain the most if share price increases much the same as other billionaires like YTL, Sunway, IOI families.

For information, I too owned Insas BEFORE the recent spectacular share price rise. But of opinion that Insas is still offering Huge Margin of Safety with discount to NTA at 67%.

Have been reading SSLee comments and felt compelled to contribute for anyone who could sell too soon for such deep discounted businesses.

Warren Buffett’s margin of safety is to build a bridge that can carry 20Ton lorry but have a lorry that weighs 18tons to cross it. By this analogy, we are saying that Insas as metaphor lorry weighs only 6Ton crossing over 20 Tonnes capacity bridge. The bridge is very unlikely to collapse

Disclosure: I own BOTH Insas and Insas WC and may continue to accumulate in near future.

Well done TheContrarian.

I am so delighted to know investors like you.

Insas holdings of Inari is greatly under-appreciated. I understand that Inari is one of few selected supplier to Huawei’s Handphone

to benchmark
Apple sourced chips from few major suppliers including Foxconn with iPhone world market share at 29.6% (2023)
Foxconn market cap is at US$70.3 BILLION (Jan20,2024)

Huawei sourced chips amongst others from Inari Ametron with world market share at 3.6%. Inari market cap is only at US$2.57BILLION (RM12.1 BILLION, Forex RM4.71=US$1). Inari is <4% the size of Foxconn but is linked to Huawei which is expanding aggressively in key markets like China, Asia, Europe and of course USA.

With war chest of over RM1.8billion to expand capacity, what if Huawei continues to expand market share 7.2%? wouldn't that be major increased order for Inari?

windfall gain for Insas whose current holdings in Inari alone is excess RM1.5billion.

I do note that Huawei may source from other chip makers too and that Foxconn has other major clients. So can Inari supply to other industrial customers.

Source: https://www.oberlo.com/statistics/smartphone-market-share

Disclosure: I own BOTH Insas and Insas WC and may continue to accumulate in near future.

Contrarian.

I agree with you. Anyone of us can forecast the past with perfect accuracy.

Are we able to forecast for 2024-2026 movements?

SSLee, bro

A family man just like you and looking for sustainable moats businesses to invest except that I have 1 son, haha, 50% lesser than you.

I read hundreds of Fin Statements in Bursa and was glad to research on Insas with 68% discount to NTA. Even more impressed when I saw your analysis.

As investors we look for Dividends Yield AND Capital Appreciation.

If one holds Insas since FY2019-2024 (6 years) the returns are:
1] Total Dividends (3 years x 2.0 sen) + (3 years x 2.5sen) = 13.5 sen or gross 16% over the 5 year period
2] Shares appreciated from 86 sen (within price range in 2019) to RM1.20 (Jan 2024) translates to 40% rise.

Total gains are 56% returns over 6 years translates to 9.3% pa average. Isn’t this far superior to most stocks and definitely Fixed Deposits 4% at best.

If one found a wonderful conglomerate holding superior businesses, wouldn’t it be better to wait for the full valuation to come?

Disclosure: I own BOTH Insas and Insas WC and may continue to accumulate in near future.