I am in this one since a couple of weeks. I agree with all the points you wrote. For me it is about a very clean setup with a defensive+recurrent business with growth ahead trading at single digit earnings, and you have a family behind who in all these years proved to be good at this. And they're NOT cash hoarders, thing I am very happy with because I am getting tired of the Asian cash hoarders...
The only red flag for me is the Komugi and the Food&Beverage thing too. I do not get it. To think positively in 2025 they finally closed the Hap&Pi (frozen yoghurt) store and the Komugi stores decreased to 14 (2 closures, 1 opening), although in Overseas went to 25 (from 20). I do not get it, I guess it is Asian stuff, but they're persistent, because they're with this division since a lot of years
As for comps, the only one I know is Synsam in Sweden. They're around 16x earnings now, and they were at +20x earnings. Of course is Sweden and this is Malaysia, but I think here we can have the business growth+shareholder returns with the divis+rerating
Very interesting company, thanks Myles.
Thanks Guy
Fantastic! Thanks, I will look more closely.
Thanks, interesting post - what led to operating margins to improve / more than double from 2019 onwards, in particular with the optical segment?
Thanks for sharing!
I am in this one since a couple of weeks. I agree with all the points you wrote. For me it is about a very clean setup with a defensive+recurrent business with growth ahead trading at single digit earnings, and you have a family behind who in all these years proved to be good at this. And they're NOT cash hoarders, thing I am very happy with because I am getting tired of the Asian cash hoarders...
The only red flag for me is the Komugi and the Food&Beverage thing too. I do not get it. To think positively in 2025 they finally closed the Hap&Pi (frozen yoghurt) store and the Komugi stores decreased to 14 (2 closures, 1 opening), although in Overseas went to 25 (from 20). I do not get it, I guess it is Asian stuff, but they're persistent, because they're with this division since a lot of years
As for comps, the only one I know is Synsam in Sweden. They're around 16x earnings now, and they were at +20x earnings. Of course is Sweden and this is Malaysia, but I think here we can have the business growth+shareholder returns with the divis+rerating
Yeah it's a shame about the F&B segment. I don't understand at all. At least they don't seem to be pursuing it as aggressively as previously.