Investing For Value

Value Investing Case Study 108-1: A fundamental analysis of KLCC Stapled Group to assess whether its great assets can deliver good upside for investors.     When you think of Malaysia’s property market, nothing is more iconic than the Petronas Twin Towers and Suria KLCC. But did you know these landmarks sit at the heart of the KLCC Stapled Group (KLCCSG) – the only listed stapled security in the country? This unique structure combines the defensive strength of a Shariah-compliant REIT with the growth optionality of operating businesses. For investors, it looks like the best of both worlds: stable, asset-backed cash flows on one side, and exposure to consumer spending and tourism on the other. Over the past decade, KLCCSG has shown why it is considered a blue-chip yield play. Its office towers are locked into triple-net leases with Petronas stretching into the 2040s, making its rental income one of the most secure in the region.  Meanwhile, retail and ho...

Tips E-08: A 1-minute summary of my fundamental analysis of NYSE CACI International Inc. (CACI) Investment Thesis CACI’s evolution into a mission-critical technology partner drove a decade of steady growth but now limits upside potential. From 2015–2025, revenue and net profit growth was driven mainly by acquisitions and cost discipline. A DCF-based fair value implies only a 15% margin of safety.  Main Business CACI shifted from a staffing contractor to a US-centric defense and government technology partner. CACI is positioned squarely in the fast-growing GovTech and defense IT markets projected to expand 7–16% annually through 2033. Growth Revenue expansion stemmed primarily from acquisitions rather than organic gains. While this strategy accelerated scale, it raises sustainability concerns once acquisition opportunities diminish. Profitability Earnings growth exceeded sales due to cost leverage and lower taxes, not pricing or efficiency gains. ROIC averaged 8%, mode...

Value Investing Case Study 107-1: A fundamental analysis of IOI Corporation Bhd to assess whether it can deliver sustaining returns in a cyclical industry.    IOI has spent the past decade navigating a volatile and cyclical industry. On the surface, its story looks simple - flat revenue, steady profits. But dig deeper and you will see a company that has quietly built resilience and sharpened its competitive edge. IOI has moved from being a commodity-heavy upstream player to an integrated group with stronger downstream specialty fats and oleochemicals. This tilt has enhanced margins while making the business more resilient. Despite flat revenue growth, IOI has preserved profitability through cost control and disciplined fixed-cost management. This has allowed it to deliver consistent returns above its cost of capital over the long cycle. With strong free cash flow and one of the lowest debt-to-capital ratios among peers, IOI stands out for financial resilience. Ov...

Tips E-07: A 1-minute summary of my fundamental analysis of NASDAQ Vicor Corporation (VICR)  Investment Thesis Despite operating in a growing niche of high-performance power electronics, Vicor’s high SG&A expenses, volatile returns, and reliance on temporary tax benefits weaken its investment case. The market price implies unrealistic improvements in growth, margins, and capital efficiency. Main Business Vicor designs modular power solutions that manage voltage conversion for performance-critical systems. Vicor now reports two lines - Brick Products (high-mix, low-volume) and Advanced Products (low-mix, high-volume). Advanced Products drive over half its revenue, with U.S. sales now only 50% of the total. Growth From 2015–2024, revenue grew at a 5.6% CAGR. However, performance has been inconsistent - affected by limited customers, manufacturing complexity, and product mix transitions. Profitability Profitability improved post-consolidation (2019), but structural ineff...

Value Investing Case Study 106-1: A fundamental analysis of IJM Corporation Bhd to assess its investment case: mix, margin, capital discipline. IJM Corporation Berhad is no longer the sprawling conglomerate it once was. By pruning away its plantation arm in 2021, IJM has sharpened focus on four synergistic engines: Construction, Property, Industry, and Infrastructure. The result? A leaner, more disciplined operator. From 2022 to 2025, IJM’s revenue grew at a 12% CAGR, but what stands out is that operating profit grew even faster. How? Lower fixed costs, stronger contribution margins, and smarter capital use. Vertical integration shields it from supply volatility, while recurring concession income from toll roads and ports anchors cash flow stability. Peers like Gamuda, Sunway, and WCT share overlapping business models, yet IJM consistently scores among the top in EBIT margins, cash flow resilience, and balance sheet strength. Its Achilles heel has been shrinking EPS. But ...