Zeff The Great commented on a stock · Aug 21, 2023 14:28

The beauty of the Beauty Industry

Recently , there was a new IPO in Malaysia which caught the attention of the investors.

$DCHCARE (0283.MY)$ became the first of its kind to be listed on Bursa Malaysia . Due to it’s strong financial performance from 2020-2022 , it draws a lot of interest from fund managers and retail investors to put their money into this counter.

However, the high expectation of the future growth has pushed the valuation to skyrocket to more than 50 times PE Ratio

When i study about this industry, i came across one company with similar business model which is listed in Hong Kong $PERFECT MEDICAL (01830.HK)$ , it has about 100% dividend payout and much lower valuation .

Beauty industry is known to be recession-proof , usually their client based are from those people who are having much stronger spending power. The industry itself also yield strong profit margin and generates strong cash flow as most of the beauty service package sold requires customers to pay upfront.

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Zeff The Great

▶️ Chief Trainer @Sharix.my ▶️ grow portfolio from RM 10k to RM 1 mil in 5 yrs ▶️ follow my FB [Zeff的宏财伟略]

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