The stock price has plummeted 50%. Should we think twice before we get to the bottom of Hapseng (3034)?
As a representative of a well-known blue-chip company, Hapseng has 6 major businesses, namely palm oil, industry, credit, automobiles, trade, and construction materials. The most famous of these is having Sabah's largest sustainable palm oil business, which has been the Masaidi sales champion for many years, and a 10-year upward cycle
From 2011 to 2020, Hapseng's stock price rose from less than RM1 to RM10, an increase of up to 1000%. This is an annual increase of 100% on an even basis. Until the outbreak of the epidemic, stock prices seemed to have shown great resistance. The past two quarters handed over disrespectful performance due to falling CPO prices, rising raw material prices, and transportation costs
Furthermore, the announcement by Hapseng of the divestment of the credit business in early March and plans to use it to repay loans and operating costs rather than as a special dividend also disappointed investors. Coupled with the impending change in the auto agency model, there seem to be more uncertainties about the outlook, so that the stock price quickly fell below a 7-year low, even lower than the total value of net assets per share
As mentioned in the previous video, once the essence of the business changes, retail investors must take extra care rather than rush to the bottom. Happeng, for example, has sold out the most stable profitable business. However, the change in the Macédi agency model will also affect future profitability. Coupled with the continued slump in CPO prices and the beginning of weakening consumer demand, the next few quarters will be quite challenging
So I think the current state of rationalization is just a return to a state of rationalization. Assuming that the stock price falls below the new low for the whole year, would you view it as a value investment deployment?
From 2011 to 2020, Hapseng's stock price rose from less than RM1 to RM10, an increase of up to 1000%. This is an annual increase of 100% on an even basis. Until the outbreak of the epidemic, stock prices seemed to have shown great resistance. The past two quarters handed over disrespectful performance due to falling CPO prices, rising raw material prices, and transportation costs
Furthermore, the announcement by Hapseng of the divestment of the credit business in early March and plans to use it to repay loans and operating costs rather than as a special dividend also disappointed investors. Coupled with the impending change in the auto agency model, there seem to be more uncertainties about the outlook, so that the stock price quickly fell below a 7-year low, even lower than the total value of net assets per share
As mentioned in the previous video, once the essence of the business changes, retail investors must take extra care rather than rush to the bottom. Happeng, for example, has sold out the most stable profitable business. However, the change in the Macédi agency model will also affect future profitability. Coupled with the continued slump in CPO prices and the beginning of weakening consumer demand, the next few quarters will be quite challenging
So I think the current state of rationalization is just a return to a state of rationalization. Assuming that the stock price falls below the new low for the whole year, would you view it as a value investment deployment?
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104395745 : Welcome teachers
104025390 : Hapseng seems to have set up a lot of retail investors
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104325450 : Vycon
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104269856 : I came to you through the live broadcast, teacher
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103933613 : I won't buy it, it's not a blue chip stock anymore
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