The first 200% of an investment career
It arrived in May of this year and held $KGB(0151.MY$ It's been almost three years. At first, it seemed that it was unique because it had a special industrial gas with a deep moat, especially high-purity gas (UHP) linked to semiconductors. It was also a highly profitable business for the company and contributed more than 60% of the company's turnover.
This kind of engineering subsistence company already has a cyclical weakness. Often, turnover is affected by the downturn in the industry, let alone companies linked to the semiconductor boom.
The wonderful thing is... The company started the liquefied carbon dioxide manufacturing field in 2019. The first factory was put into production in October of the same year, with an annual output of 50,000 tons. Currently, production is at full capacity.
Speaking of liquefied carbon dioxide (LCO2), it can be used for various purposes, especially in the food and beverage industry, to produce carbonated beverages and make dry ice for freezing food. Currently, more than 70% of the company's liquefied carbon dioxide is exported. This business can bring recurring income (Recurring Income) to the company, which is also shareholder's favorite business income, because it can be described as the company's “banknote capacity.” Currently, the profit from this business is around 30%.
The company's second new liquefied carbon dioxide plant was put into operation at the end of March this year, increasing total production from 50,000 tons to 120,000 tons. The company will have the potential to become the nation's largest supplier of liquefied carbon dioxide.
$KGB(0151.MY$ The first quarter of this year took advantage of the semiconductor boom, and stock prices continued to break new highs under the scrutiny of the market. As a loyal small shareholder of the company, the shareholders are also looking forward to what kind of eggs this second liquefied carbon dioxide hen can lay. The results for the upcoming first quarter couldn't keep up, and shareholders are waiting for the good news of the second quarter.
In terms of investment, shareholders have always maintained the view that “there is no competition for the flow of water; the battle is endless.” I don't care how high the short-term earnings are; I just care if this landslide lasts long enough and whether it can roll out of the big snowball.
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