Indirect Way to Invest in Hong Leong Financial Group at 30% Discount

Conglomerates typically trade at major discounts, especially if they have poor track records. This is because the structure of a conglomerate holding company adds a layer of opacity compared to a company with a cleaner corporate structure. As such, deeply undervalued conglomerates tend to remain undervalued for a long time and become classic examples of value traps.

However, when a company has been growing its topline, bottom line, and dividend payouts over many years, it’s difficult to call it a value trap any more.

I strongly believe that share price returns are not necessarily a reflection of the health of the underlying business, and this is especially the case when liquidity is tight.

With that being said, let’s take a deeper look into this company.

Be a paid subscriber to read the rest of the article!