I think all people from Penang should know this man or company - Oriental Holdings Berhad owned by the late Loh Boon Siew.
But it's hardly heard of in other region.

Why Hidden GEM??
1)Most land bank valued during 1976 and 1978. and BSG Property have the LARGEST lank bank in Penang, current NTA RM6.98.
(Imagine what would the NTA be when those land are revalued. Yes, possibly another KEK SENG)
2)BSG Property, a reputable developer.
3)Cash (RM2.8billion) more than market cap.
4)At 52 weeks low due to disposal of EPF lately.
5)Dividend 2 times per year (although amount not high compared to the amount paid as dividend vs cash and net profit)
6)Palm Oil Plantation sector is going very well, lank of plantation is larger than IJM plantation.

Only for long term investment!!

"A holding of 1,000 stocks in Oriental when it was listed in 1964 would translate into 48,306 Oriental stocks
worth RM270,030, based on the share price of RM5.59 at the end of 2010. In addition, the stocks would have
earned a total gross dividend of RM152,478. The gross dividends received and the appreciation in value is
equivalent to a remarkable average rate of return of 13.73% for each of the 47 years.“

and ALL Honda cars in Singapore and Brunei are distributed by them.
And they distribute ALL Honda motorcycles for sale in Malaysia to 50% owned JV with Honda Japan.

why they are off the radar is because before that they distribute all Honda cars in Malaysia but after that Hicom grab that distributorship from them.
hence making them no longer in the radar of automotive sector.


Again!
NOT FOR PUNTERS, SUITABLE FOR LONG TERM PLAY.

Ok thx ))))

Thanks for starting this thread. I've got Oriental in my radar now. Looks really good. Downside..
1. Founder no longer around, just like Apple;
2. Past performance no guarantee to future performance, ... although it does give one a good guide as to how good a company is.

Will be stocking up some when the market crashes........ which I expect to be imminent, latest by early 2012.

This post has been edited by tohca: Nov 30 2011, 07:41 AM

Thanks for sharing the gems..

this uncle didnt declare dividend this qtr, 3c also dun wanna give...
furthermore, ThaiFlood will affect their honda distribution business i believe...
should be able to get cheaper in months coming... slowly accumulate..
probably gotta outlive the board to be able to get any goodies...
they need new blood...

This post has been edited by mopster: Nov 29 2011, 12:24 AM

Look at Keck Seng, although landbanks value not yet unlocked, but as long as they don't unlocked it, that is quite useless to shareholders if they don't pay good dividend. Hold it for 5 years? 10 years? if still locked, what is good for holding it long term? Just my view.

+1 good point.

I guess if the net asset is high vis a vis the share price, it makes the good value for money; provides potential for share price appreciation; very easy to expand business, get loans, etc, etc... But what you say about immediate value to shareholders (in terms of near term profit) is a valid point. A true bule company pays true blue dividends and not hoard it from its shareholders.

Companies like these are 'old money' companies, who are not keen to grow anymore, but preferred to just stay put and the directors continue to enjoy life. They are not taking chances anymore.

To me, if the dividend payout is not good, there is no point buying this company, and hoping that the revaluation will cause share price appreciation one day. Your money will get stuck.

I bought a couple of these "Gems" some 10 years ago at around RM5... low dividend across the years... I wanted to get rid of it and switch to something more profitable, but my dad(mentor) says to hang on to it... as this is a cash rich company... It might just go "Ka Boom" as soon as you sell it... might give bonus also

most important,
my point of view, weak in management.

First of all, the company is managed by the children of the above mentioned deceased. Some institutions price in a risk premium for companies that have family legacy issues as they are perceived as not being managed efficiently. Oriental Holdings certainly have a lot more potential if it is being independently managed by someone outside the Loh clan. It can easily be one of the heavy weights in KLSE given its resources especially plantation land. There are rumours that it owns more than half of Pulau Langkawi itself

There are rumours that it owns more than half of Pulau Langkawi itself...

as you said......."" rumours ""

not hard feeling

just feel ppl running the show ineffective


i still prefer KLK and the mother BKawan, proper and prepare hand over, 10years no problem..

ps...just my 2cents

but they did expand their business, here in Penang...
for example their property division is building a few new condominiums and launching of a lot of new residential projects, and building hospital in Melaka as well as expanding their oil palm plantation in Indonesia...
however, undeniably these are kind of growth are conservative act and they are really resilient in using their cash pile...

what i hoped for investing in company like this is that they will eventually unlock their company's full value by listing their division 1 by 1, just like what Vincent Tan did...
if you check back the history, in the 90's, when the founder dead and his daughter take over the company, the share price did soared, as investors anticipate unlocking of company's value, but unfortunately, she did not do so.
now she is almost at her age of retirement and there will be the 3rd generation taking over this company...
and history might repeat itself...

Anyhow, the ultimate reason i love this company is because i like to buy a hidden gem at a bargain!!
rather than a shiny gem at a sky rocketed price...
as of now the cash pile is almost RM2.8 billion...and the market cap is just less than the cash pile..
i believe that buy and hold strategy will reward me greatly in this company...

---

Added on December 1, 2011, 10:50 pmthose rumors are true...
sometime ago some chinese newspaper did mention Loh buy lots of Langkawi's land before Langkawi was declared as duty free island and hence had made a lot of fortune from it ...
their flagship hotel chain Bayview Hotel is in Penang, Melaka and Langkawi.
and from the annual report, you can see that they held large pile of land all around the area where there is a Bayview Hotel.
so the rumor are true...

the only problem is that whether those land are placed under Oriental of their majority shareholder Boon Siew Group?

This post has been edited by sjz: Dec 1 2011, 10:51 PM

This is what Warren Buffett calls as "Value Investing"... Buy something that you are not worried even if the stock exchange shuts down for 10 years...

They are very conservative. They do not have a project in penang that you can easily associate with. They are developing their land bank slowly and most of the projects that they carried out are conventional developments that are mostly not gated.

Unlike the children of KLK Tan Sri Lee, the late Loh is an uneducated chinaman and their children are no different. One of his children even commited suicide and the children dont really get along. Tan Sri Lee in KLK studied in reputable universites and his childern are also highly educated and therefore investors will probably have more faith in the company after the handover. Another example is genting. The person running the show in Genting is actually Justin , one of his grandchildren and not Lim Kok Thay. Justin went to Cambridge and therefore investors are genarally comfortable with it.

some movement noticed...
very bullish technically speaking....
end of down trend as a very wonderful hammer had formed
yesterday.
Today gap up...so should be the end of downtrend...

But keeping for long term so don't really care much about any recent price movement...

"The reliability of Bullish Hammer Pattern is low. It requires confirmation of the implied trend reversal by a white candlestick, a large gap up or a higher close on the next trading day."

yah... if buy this uncle it's not for 20c-30c gains..
it's to wait for it to unlock all the hidden values ...
hopefully i'm still alive by then...

LOL, then what's for the hidden value remain hidden until cannot see it alive?

i think it won't stay hidden for long...
because some of my instinct tell me they are going to hand over the company to their third generation (their son and daughter) since they already in the 60's and some in 70's...by seeing the recent acquisition from Mitsubishi USJ Financial group and their associates Abardeen Assets Management...But EPF is disposing instead...


so they would probably list the company's subsidiary to unlock the value.

This is what happened before:
"News of Loh’s demise lifted the share price of Oriental Holdings to limit-up. The stock shot up to RM14.90 from RM3.40 as speculation was rife that Oriental Holdings would be a takeover target after the death of its founder and that would help unlock the value of the group’s assets.

It is said Loh had put in place an intricate cross shareholding structure in his business empire to prevent a possible split by his heirs. "

http://www.theedgemalaysia.com/in-the-fina...-honda-cub.html

This post has been edited by sjz: Dec 6 2011, 03:20 PM

Look like new push for this what is up?...
look like strong resistance at 5.16