Since the companies in my portfolio is not performing lately,
so I decided to open my eyes for other companies,
and today I would like to write about this company:
Maybe some of you don't know about this company,
so I will do a brief introduction.
The company is involved in hire purchase financing for used motor vehicles,
and selling general insurance policies as an insurance agent.
Well,
basically the company is providing loan for buyers of used motor vehicles and at the same time selling insurance to the buyers~
The company also involved at business of trading and wholesaling of home furniture:
Next,
let's have a look at the past 5 years financial record:
The revenue and profit rose every year,
why now only I saw this company.................
The company also quite generous of the dividend:
The NPL ratio also decreased year by year:
The company mainly involved in small value financing:
The insurance products sold by the company are mainly from Tokio Marine and Berjaya Sompo.
The hire purchase financing contributing 98% of the profit:
Which meant that the furniture business is still a very very small business.
The company currently have 195 employees:
The company relies on broad hirer base as a strategy to reduce its credit risk.
The company has hirer base of approximately 38,500 individuals,
and the net hire purchase receivables per hirer is around RM13,000:
For the past two years,
the company increased the maximum loan size to RM35,000 to include a larger range of popular vehicle models.
The management is feeling positive at the future of the company:
The management think that their niche in used-car segment remains underserved,
and the market share is still small.
The management is confident that next year will be better:
Did the management achieved a better result like what they said?
Let's look at the latest quarter financial report:
For the past 6 months,
the revenue grew by 20% while the profit grew by 13%.
The management did what they said~
That's all for the important points of latest annual report and quarter report,
if you feel like something is lacking,
feel free to go to BURSA website to download and read it.
The continuing growth of business and the generous dividend,
are what I found attractive from ELKDESA.
HOWEVER,
after investing at AEONCR for few years,
I realized that the market don't like companies that involving in financing business,
so we can't expect that the market will suddenly reward high PE.
Investment is about doing own thinking, making own decision.
Thanks for reading.
I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.
Recent articles :
TOPGLOV latest annual report
2019 Version: The Consequence Of Long Term Investing
STMKB latest annual & quarter financial report
AJINOMOTO latest quarter financial report
AEONCR latest quarter financal report
Other links:
No comments:
Post a Comment