Tuesday, January 12, 2010

Popular Holdings Limited

Popular Holdings Limited, is a well-known local bookshop where people buy their books from. There are a lot of things that people does not know about popular.

Do you know that Popular has bookshops in Hong Kong and Malaysia as well? Do you know that Harris Bookshop belongs to Popular? Do you know that Popular owns {Prologue} in ION Orchard too? Do you know that they are also making fast and extensive move into the Greater China market as well? Do you know that they are also into property development, like One Robin, 18 Shelford and 8 Raja?

Popular has a net asset value of about 23 cents and now it's selling only at 17.5 cents, that's a discount of 24%. Popular Holdings Limited has been around for decades, and  every year they make have positive earnings, during both good and bad economy. Popular is a well known brand in Singapore and hence has that durable competitive advantage. Popular made a lost in FY2009 because they have started exploring into property development sector, and project was on the way and sales were not started yet. It is shown in their latest 3Q results, earnings has reached 2.3 cents. At 17.5 cents, they are actually selling at P/E of 7.6 compared to their average P/E of 11.7 for the past 10 years. Share price of Popular should be at 26.5 to 27 cents.

Let's talk about dividend. On average, Popular gives out 38.6% of their earnings out as dividend. Well, dividend yield depends on the price that you pay for your stocks.At current price of 17.5 cents, dividend yield is about 7.26%. Average ROE of Popular is 11.8%. Using this ROE, expected earnings for 2015 is 3.97 cents, which should bring the price up to 46 cents to 46.5 cents.

This company is indeed a good company to buy and hold forever.


  1. Hello, Guei Thime Liao... How come so long no posts. Google want to close your account already.

  2. Have patience, my friend. Maybe should talk about 'RE'trench United.