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Hup Seng Industries is the no.1 cream cracker brand in Malaysia with a market capitalisation of USD 133m. The company is run by the second generation of the Kerk family (owners since 1957). This shift in emphasis, from passive to active capital allocation, led to positive results for Hup Seng Industries.
It is my belief that, on average, our holdings trade at a discount of at least 50% to what any independent buyer would pay for them. We own DKSH Malaysia, the No1 distributor of fast-moving consumer goods and medical supplies in the country. Its Swiss parent, which owns 74% of the shares, has just offered to buy us and other minorities out at RM6.15 a share. Before the offer was announced DKSH(M) was trading a bit below RM5.00.
Bermaz Auto has the franchises for Mazda, Kia and Xpeng - the latter being a Chinese car manufacturer. Following on from Bermaz’s success with Mazda, we were expecting great things when the company secured the Kia franchise a couple of years ago. Unfortunately, PRC manufacturers are dumping vehicles everywhere, including Malaysia. The company has a very good and longstanding association with Mazda but the relationship with Kia is facing some teething problems, with disagreements about pricing etc.
Would Focus Point's F&B venture be a value creation or value destruction?
Focus Point Holdings Bhd. consists of two (2) business segments:
1. Spectacle/Eyewear
2. F&B, Komugi brand
Its eyewear business is doing good and a cash flow generator. Whereas its F&B segment still made the accumulated losses of RM30.39 million according to the below extracted CTOS LitE Report since year 2012/13.
The Credit Rating's total addressable market (#TAM) in Malaysia that the independent research house, IDC Market Research provided a set of the forecast data for reference.
How did Focus Point CEO, Dato' Liaw Choon Liang drive the core-ROIC from 4.74% to 26.70% since IPO 2010 to the year 2024? And maintained the double-digit ROIC from the past 6 years? Its capital structure had been improved from the highest debt-to-equity ratio of 1.06x (FY15) reduced to 0.26x (FY24).
