Friday, January 27, 2012

Boustead Berhad : RM6.70

How much is this share worth?

From Hong Leong Share Margin Valuation sheet, this share is worth RM6.70 with 100% margin. That mean the business model is very solid and the share price is not overprice.

Why Invest in Boustead?
- Plantation Sector - Actively involved in Plantation industry @Malaysia and Indonesia. This provide the strong income to Boustead Berhad
- Heavy Industries - Majority related to Shipyard, Defense and Oil & Gas. Without solid network, it's hard to get entry into this business.
- Property Development - Top Ten Developer in Malaysia.
- Finance & Banking - Affin Bank. Doing well in Car Loan, Housing loan
- Pharmaceutical Business - Pharmaniaga Bhd - This is sure win contract business from Malaysia General Hospital. Good Job!
- Manufacturing and Trading - BP, Paint, Cements and etc.

Boustead has special competitive advantage compare to other companies because of funding size and strong business framework. It could be next SIME DARBY BERHAD in Malaysia, But they're making right move with right decision!

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