I have added shares in Dynam Japan Holdings (HK:6889) to the portfolio.
The company sells on very modest fundamentals with a trailing PE of 7.2, a dividend yield in excess of 6% and strong free cash flows. The balance sheet is strong with a reasonable amount of net cash on hand (33.5 billion yen). ROE is high at 19%. The negatives are a diversion into property development in Mongolia (!) and the fact that most of the revenue is derived from pachinko (a declining industry) and is denominated in yen. The former should be addressed in time with the company stating that it will refocus on gaming and the latter through diversification into other gaming ventures (which carries its own risks).
I paid an average of HK$17.07 per share.
No comments:
Post a Comment