Market Challenges & Business Strategies
Moving forward below are their plans and business strategies which they have discussed in their event.
In conjunction to the budget 2019 Bank Negara Malaysia (BNM) would like to announce the establishment of a RM1 billion Fund for Affordable Homes (the Fund) to help home buyers from the lower income group nationwide to finance the purchase of their first homes. This would greatly increase the group’s revenue for their property sector, thus creates a good opportunity for their affordable housing segment (PR1MA, PPA1M). With this there is a strong demand for affordable homes.
Future developments for Singapore’s Land transport
Singapore is planning to add another 24 kilometer long MRT: Jurong Region Line (JRL) to their existing network which gives opportunity for KIMLUN to increase their revenue up until the expected date of completion which is 2030.
North-South Corridor Expressway (NSC) which is still currently in development now as well as 6 more new contracts are awarded which they will begin work at the end of 2019, expected to be completed by around 2026.
Below shows the diversified shareholding structure of 2017 and 2018, as we can see that on 2018 the founder’s family and individual public investors have been buying as the company’s valuations gets cheaper and cheaper, normal investors like us tend to see it as cheap as it is currently trading at below the net tangible asset. Institutional investors are forced to sell as they have policy to sell downtrend companies. This has been a standard procedure in the market for generations where institutions sell when market goes down regardless of the valuation of the company, us value investors tend to pick it up when the price is really cheap, thus we are actually the real winners.
After their 2018 price plunge we can see that their price shot up and became a reversal which signifies an uptrend which might prompt the institutional investors to put more money in.
We should also know whether if the directors of KIMLUN have the same interest as us with growing the company. Below are the Directors shareholdings which direct and indirect interest sums up to be around 50% stake which this is more than enough evidence that their director’s interest are aligned with ours.
We would like to express our gratitude towards the organizers and directors of KIMLUN for inviting us to the event. We definitely learnt a lot and would like to go for the event again in the future 😆 Below is a picture of us with one of the directors of KIMLUN.