@DualShock, I have already spoken about the reason for the slow model update. Look at my posts from before.
At these prices and valuation...close eye and buy lah. Sure double, possibly 4x, maybe even 6x upwards in a 5 year period. Tan Chong isn't going anywhere.
Not BV per say, but the trough situation. We are at the bottom of the cycle. Improving Ringgit, improving GDP in Malaysia and Indochina, new models in the pipeline...from bottom to top, companies easily move 4-6x. Now the question is, are we at (or near) the bottom? That is the key.
Btw I like the Q3 report. Regardless there will be a selldown tomorrow and I will be there to pick up the pieces. Some of them at least.
For the last few years, the car sector is not in the trough, but actually increasing, only recently start to taper.
Even when the sector is booming, tanchong can still die. This is not related to the industry but the company.
Just cause you lost money in this counter, does not mean you need to make it back here.
This company is being choked alive, due to mismanagement clearly.
Posted by nikicheong > Nov 28, 2017 08:46 PM | Report Abuse
Not BV per say, but the trough situation. We are at the bottom of the cycle. Improving Ringgit, improving GDP in Malaysia and Indochina, new models in the pipeline...from bottom to top, companies easily move 4-6x. Now the question is, are we at (or near) the bottom? That is the key.
Btw I like the Q3 report. Regardless there will be a selldown tomorrow and I will be there to pick up the pieces. Some of them at least.
Cut loss and use the money to invest in other profitable counter, may give better return instead of holding an uncertain profit company. Below companies either loss making company or price falling serious company may be useful as reference.
Though one day they may rebound and go high and higher but why invest in uncertain instead of follow the trend to get profitable counters? If they are good, once confirmed profitable in QR, only come back still not too late. Just 2 cents.
Thanks for your kind concerns dear folks. I am more than capable of thinking for myself. My investment style has served me very well indeed. Tan Chong Motors will be a winner. When? I don't know. But till that happens, I can rest easy knowing I am buying into a company that will surely rebound in the mid to long term.
Look at MHB.
The stock market is forward looking. Tan Chong is selling at depressed valuations. Any minor news (new car launch for example) will serve as a catalyst to bridge the valuation gap.
We shall judge the rationality of my decision in the 12-24 month period.
Entered once more today @1.38. Avg price now at 1.60. Tan Chong Motors is well-positioned to benefit from the strengthening Ringgit, rebound in consumer sentiment (which always eventually mirrors GDP growth rate) and launch of new models in the new year (namely Serena Hybrid 2018 and Xtrail 2018, plus one or two other launches). Possible upside from quick growth in Indochina as well, namely Vietnam and Myanmar.
Tan Chong trades at very undemanding valuations. True, it could be a value trap, but this is also precisely the type of company that becomes a multi-bagger over the long term (5-10 years) due to the depressed valuations.
Tan Chong Motor Holdings Bhd has secured the rights to be the exclusive distributor, assembler and after-sales service provider of King Long products in Vietnam.
Its wholly-owned subsidiary TC Motor Vietnam Co Ltd (TCMV) entered into the exclusive distributorship agreement with Xiamen King Long United Automotive Industry Co Ltd.
The partnership with the Chinese company which specialises in the design, production and sale of various buses and coaches, will help facilitate Tan Chong’s penetration into the different bus and coach segments.
The Geely Boyue is currently priced around RM68,500 (110,000 yuan) in China, while competitors such as the Honda CR-V and Mazda CX-5 are sold at over RM100,000
Award-winning Malaysian conglomerate and automotive group, Tan Chong Motor Holdings Sdn. Bhd. (TCMH), has reached world-class status following its 50-year evolution from a start-up in the early 1970s. Although the head office is still firmly rooted on home territory in Kuala Lumpur, the company now has more than 13,000 employees across 23 global brands in 15 countries around the world, with annual revenues exceeding $4B.
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....
nikicheong
2,538 posts
Posted by nikicheong > 2017-11-22 21:23 | Report Abuse
@DualShock, I have already spoken about the reason for the slow model update. Look at my posts from before.
At these prices and valuation...close eye and buy lah. Sure double, possibly 4x, maybe even 6x upwards in a 5 year period. Tan Chong isn't going anywhere.