Dark Horse, Texchem Holdings 0.64

The major shareholder and boss DATUK LIM SIOW JIN, 63 years old this year. Founder of DXN Group, with 25 years of direct selling industry experience, famous for Ganoderma coffee worldwide. In 2024 became the 40th richest man in Malaysia with 525 million. Listed on the main board of the Malaysian stock market on September 30, 2003 at an IPO price of 0.67.... Acquired and privatized in September 2011 at 1.75. The share price at that time was 1.42, with a 23% premium. The boss is generous in giving back to all shareholders. This is worthy of everyone's praise! It also proves the boss's morality and conscience, after all, there have been too many instances in the stock market of privatizing and delisting companies that devour people without spitting out bones.

On May 19, 2023, relisted, the boss said the main purpose was to enhance the company's image. Perhaps many people think how noble the boss's words are, after all, 99% of companies go public mainly for fundraising, repaying debts, and expanding business. But when I discovered that the company's net cash was close to 500 million, it turned out that I was superficial. Dexin Holdings is indeed a cash cow company. Where does the talk of fundraising and debt repayment come from, instead, there are generous dividends distributed every quarter.

Health product direct selling has always been an essential supplement for everyone, as nothing is more important than one's own health. Many direct selling listed companies in the health product industry are prominent, including AMWAY, Seagull Beshom, and Zhulian, among others. However, in terms of revenue and net profit, Dexin Holdings is the most outstanding. Moreover, from 2011 to 2024, the company achieved a 16% CAGR in revenue and a 20% CAGR in net profit. The average Net Margin of the company also reached 20%. As of the latest fiscal year 2024, revenue reached 1.8 billion, and net profit 311 million. It is simply getting better year by year! This also explains how the company managed to generate 500 million in net cash.

Perhaps many only know about Amway and Seagull. This is understandable, as DXN's business is mainly distributed in PERU 25%, BOLIVIA 15%, MEXICO 14%, INDIA 11%, with Malaysia only contributing 7% to the revenue. It makes me admire the boss for having a global market perspective and a vision for the future. Starting in 2024, DXN has also entered high population growth areas like Brazil, Argentina, and Ghana. It is believed that these regions will contribute significantly to future profits. Furthermore, the boss has not neglected the Chinese market, knowing it has the largest population in the world. A key figure in the company, senior Zhang Hanjin, has already gone to China to focus on developing the business there, which will likely be a crucial milestone for DXN's peak in the future.

70% of the company's shares are held by family members, while 13% of the shares are controlled by a foundation registered in Singapore. Notably, the company's dividend payout is quite high, at around 6%, and the company plans to distribute 50% of profits as dividends in the future fiscal year. The stock price is lower than the IPO at 0.70, truly being a severely underestimated dark horse. It can attack when necessary and defend when needed! Additionally, the company will also conduct share buybacks, known as share buyback operations. It is believed that spring will arrive soon.

This story is purely fictional. Any resemblance to actual events or persons is purely coincidental.

Wishing everyone to invest cautiously and control risks.