Koon Yew Yin 官有缘 - Why Am I Buying Xingquan? Koon Yew Yin

You can find the answer if you study the following financial highlight and price chart carefully.



My reasons for buying Xingquan are as follows:

1. CIMB were the under writers for Xingquan IPO at Rm 1.80 per share about 6 years ago.
2.  Xingquan has been making profit every year since it was first listed and its share price has been falling ever since. These 2 sentences do not make any logical sense.
3. In the latest annual report 2015, you can see that its net tangible asset is Rm 3.42 with about Rm 3.00 cash per share. Its EPS is 42 sen in financial year ending June 2015 and it is selling at about 60 sen, P/E less than 2.
4. Most of the investors do not believe the audited accounts is true because the company gave out very little dividend.
5. I believe the audited accounts because one of the founders of S J Grant Thornton is my cousin. 
6. Xingquan is listed in Malaysia and I believe our Securities Commission can protect shareholders interest.
7. I also believe the legal system in China and the controlling shareholder of Xingquan cannot cheat the minority shareholders.
8. Many shareholders are tired of holding the shares because it gives out very little dividend and they sold to cut loss. That is why the price has been coming down ever since it was listed.
9. I visited Xingquan in Xiamen a few times and I know that it has utilized all the money it received from IPO to expand its existing factory and constructed hostels to accommodate 3000 workers.
10. Xingquan has reduced its shoes and shoe sole business because of competition. It is now selling high class casual wears under the brand name of “Gertop”. It is not giving out dividend because it needs all the cash to open up new outlets. It has open about 110 outlets in all the larger cities in China. Xingquan has to pay cash for all their purchases.    
11. In Guru Benjamin Graham’s book “The Intelligent Investor” all the company assets cannot disappear in thin air. Eventually the controlling shareholder will want some cash out of the company by giving out dividend.
12. Although I am nearly 83 years old, I can wait patiently. When I die my Charity foundation can wait patiently. I think the risk in buying Xingquan is small.
13. I am not asking you to buy. If you buy, you are doing it at your own risk.    

Koon Yew Yin 官有缘 -  Why Am I Buying Xingquan? Koon Yew Yin
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XINQUAN, XINQUAN (5155), 5155, EN5155, KLSE:XINQUAN, Koon Yew Yin, Koon Yew Yin 官有缘,