I quite like the business. The one thing about that co that is not so good was that the management did not leverage up as they should (since its a financial institution they are running) and instead decided to do non stop rights issue.
Recently the management have decided that they would like to leverage up. So that is a good thing.
Second part is that, the payees can't direct transfer in the payments, but have to go to the counter to make payment, which i find very odd.
Of course, this could very well be an edge, if your entire customer base is under banked, but its odd.
=== hpcp Hi Choivo, thanks for the article. What do you think of elkdesa, which has better NPL ratio and business has been growing consistently 21/12/2019 7:32 PM
1) They tried to go into general insurance, which is not their edge, travel insurance division is incredibly profitable.
2) Their fund management for the investment is quite bad, some of it is in unit trust, which are just stupid and inefficient. If you dont know what to do, put it in the S&P500 index or smtg. The rest are in MGS.
3) Everyone sells car insurance online now. But health, life, savings plan etc those are usually not sold online. TUNEPRO is not doing anything in trying to do that. If they did, they can cut the 6% first year, 4% second year commission and cost, giving them a huge edge. But they are not. So..
I recently re-buy some at 0.570, but very small position, mainly because its cheap.
Its not about the visionary of the management, but the economics of the business first. Unless they actually know how to run an investment fund on their own and do general insurance, i find it hard to see their edge.
Haha Choivo, Just pulling your leg as I appreciate your intention of explaining the previous accounting standard IFRS 139 and current IFRS 9 emphasizes shifts to the probability of future credit losses, even if no such triggering events have yet occurred thus affect the reporting of profit. But I take offend of your sentence, “Quite interesting, does not sound like the place i want to work at (since i’m in financial reporting), but definitely sounds like the kind of company whose stock i want to purchase”
Any good company should place customers first, employees second and shareholders third because 1. With happy customers, you will get more customers and thus your business will prosper. 2. With happy employees, they will produce more and be more efficient. 3. With business continuously growing, shareholders will be rewarded with high premium of PE 25 to 50 to 100 and beyond.
I am lucky to work in a company that believes we are blissful to be in an industry that benefits all our stakeholders. It is this believes that drive us to do our best, to be the best and prepare to walk an extra mile for our customers.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3248 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
hpcp
450 posts
Posted by hpcp > 2019-12-21 19:32 | Report Abuse
Hi Choivo, thanks for the article. What do you think of elkdesa, which has better NPL ratio and business has been growing consistently