Saturday, 30 July 2016

Berjaya Corp (2) - The Last Dinosaur In Bursa

Author: Icon8888   |   Publish date: Mon, 11 Jul 2016, 09:50 AM 

(In the coming series of articles, I will analyse BJ Corp group as though I am peeling an onion)

I first wrote about the BJ Corp group on 10 Fenruary 2016.

The reason I call BJ Corp "The Last Dinosaur" is because the group posesses many weaknesses that used to be quite common in the 1990s, but rarely seen now in Bursa. 

To name just a few :- 

(a) Lack of focus - venturing into all kind of businesses;

(b) Compulsive shopper - it seemed that the group cannot leave any cash idle. It HAS to buy something everytime it has some surplus cash in hand. Most of the time, the assets acquired are not that impressive;

(c) Negligence of bottom line - the group doesn't seem to care about its profitability. As many readers would have known by now, I think EPS is key driver of share price. Without profit, no wonder BJ Corp share price underperformed the broader market all this while; and

(d) High gearing - with annual interest expenses of RM400 mil, the group is essentially working for the bank.

With so many weaknesses, the reason I am still interested in BJ Corp is because they target to launch their Vietnam gaming business by mid 2016. It would be nice for us to know more about the group so that we can make informed decision on whether to top up (or reduce exposure) in the event that opportunities arise. 

(Muahahahahaha, ranining Vietnamese Dong soon....)

In the coming series of articles, I will be studying the listed entities of the BJ Corp group one by one. You should have a pretty good feel of the entire group after reading those articles.

Stay tuned. 

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