The second screen that I’ve decided to look at is Malaysia because of geographic proximity and ease of investment for investors located in Singapore.
When looking at Malaysia, I’ve tried to stay away from any agricultural companies that are purely focused on palm oil for ESG reasons. A quick scan of the companies on the list revealed that JCY has been struggling (although management is confident their situation will improve mid-2013). Puncak Niaga looks interesting prima facie but the profitability has been volatile over the past couple of years and the business model is based on receiving contracts to repair and operate dams making it difficult to value. I’ve also shied away from holding companies that have a menagerie of businesses in their portfolio.
That said, I’ve decided to focus on:
- Prestariang – Provides ICT training and certification as well as distributing software licenses. The Government has recently increased their focus on tertiary training centres with the goal of improving the skilled workforce in Malaysia to catch up with the fast developing ASEAN peers.
If you have any opinions on the companies I’m looking at or avoid, let me know.
I don’t currently have any active positions in the companies mentioned but may initiate positions within the next 30 days.