Tuesday, September 17, 2013

Oriental Holdings Bhd - major shareholders have buying more shares recently

Several major shareholders have buying more shares in the company in 2013 despite its poorer financial results for the first half of 2013.

Filings showed that the EPF and Aberdeen Asset Management Plc have increased their shareholdings in the company. EPF has over 61.26 million shares or close to 10% while Aberdeen has 10.44% stake.

With the latest accumulation of shares, it appears that the major shareholders are not put off by Oriental’s poorer financial performance.

Oriental is involved in several businesses. It sells Honda vehicles through a dealership held by its 100% unit Kah Motor Company Sdn Bhd in Malaysia and its distributorship in Singapore and Brunei. It also sells Hyundai cars via its unit.

Its plantation division, which has oil palm estates in Indonesian and Malaysia is also a major earnings contributor to the group.

The group is also involved in the hospitality business with presence in Malaysia, Singapore and Australia, NZ, Thailand and the UK, property development and building materials segment, as well as education/healthcare, via its 70% owned nursing college.

Its cash stood at rm2.62 billion. It is believed that the cash would likely be used to expand its plantation business in Indonesia. By using the cash of over rm2 billion could be a catalyst to its plantation division, which contributes about one third of the group’s earnings.

Oriental is a deep asset play. The company is rich in assets. It has a lot of land assets, hotel assets and over rm2 billion in cash.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.