G K Goh - who is this guy?

Came across this company recently and the financials sure look interesting.  The company is an investment holding company.

Financial strength
Current Ratio	1.76
Quick Ratio	-
Long Term Debt to Equity (%)	20.52
Total Debt to Equity (%)	25.91
Interest Coverage Ratio (TTM)	-
Free Cash Flow to Firm (TTM) (SGD 'mln)	-69.93

Margin
Gross Margin (TTM) (%)	75.43
Operating Profit Margin (TTM) (%)	31.58
Net Profit Margin (TTM) (%)	53.73

Dividend §
Annual Dividend per share (SGD)	0.0400
Dividend Yield (TTM) (%)	4.73
Dividend Yield (Annual) (%)	4.73
Payout Ratio (TTM) (%)	-
3-Year Growth Rate (%)	10.06

Valuation
Historical P/E Ratio	12.34
P/E Ratio (TTM)	12.34
P/BV (latest interim)	0.71
BVPS (latest interim) (SGD)	1.1827
EPS TTM (SGD)	0.0685

DPS (SGD)	0.0150	0.0300	0.0400	0.0400	0.0400
EPS (SGD)	0.0172	0.0916	0.1778	0.0609	0.0685

[Source: POEMS.]

Debt level below 40%.  Not over-leveraged.

High gross and net profit margins above 40%.  Looks like a business that doesn't suffer from competitive pressures. Possible moat?

Dividends above 3%.   Its 5-year trend shows that the dividends payout (DPS) have been steadily increasing from 0.015 (FY09) to 0.04 (FY13) while consistently maintaining its DPS below earnings (EPS).  

P/E ratio below 15.  P/B below 1.0.  Which means it is valued below its current worth.

From the information at its website (http://www.gkgoh.com/), the company owns brokerage businesses in Singapore, invests in various retirement services in Australia, with smaller stakes in networks in European cities, property and hotel businesses in Malaysia. 

• G. K. Goh Financial Services (S) Pte Ltd (100%), a futures and foreign exchange brokerage in Singapore;
• G. K. Goh Strategic Holdings Pte Ltd (100%), which invests in liquid markets;
• Habitat Assets Pte Ltd (100%), which invests in retirement living assets primarily in Australia;
• Boardroom Ltd (81%), an SGX-listed company, one of Asia’s leading providers of corporate and advisory services, providing clients with an integrated suite of Smart Business Solutions, namely Accounting & Finance, Corporate Secretarial, HR & Payroll, Internal Audit & Risk Management, Shareholder Services, and Taxation services in Singapore, Malaysia, Hong Kong, China and Australia;
• Domain Principal Group (48%), an Australian aged care provider with 56 facilities totalling more than 4,800 bed-spaces in the states of New South Wales, Queensland, Victoria and Western Australia;
• Eastern & Oriental Bhd (6%), a KLSE-listed property and lifestyle group;
• euNetworks Limited (9%), an SGX-listed company which owns and operates fibre networks in 14 European cities.

Interestingly, it expanded its ownership of Boardroom and now owns 81% of it.  Boardroom itself is a SGX-listed company that provides support services for many publicly-listed companies and gives out regular stream of dividends. Looks like a very stable line of business.  Many letters that I received from SGX companies carry the Boardroom letterhead on their envelopes.  

There was a negative cash flow for FY13 and that was likely due to an investment in a 47.6% stake in Domain Principal Group, an Australian aged care services company, as indicated in its 2013 Annual Report. This investment was funded by a combination of cash and loans. Despite which, its gearing has maintained below 40%.  Seems sound and not a red flag.

Its Malaysian hotel and property investments are centered in Penang and Iskander Region. A touristy place and a growth region. Holds potential.

A bunch of very different businesses. But each with an interesting story which suggest prudent and stable income streams. Owners pay themselves handsomely, but also collectively own a large chunk of its own stocks.

In recent weeks, GKG Investment Holdings appear to be buying quite a bit of this stock. On 3 occasions in Jun 14, they have bought 23000, 121000 and 29000 shares. Insider buying is always an interesting indicator for me.

[Disclaimer: This is not a call to buy this stock. I am only recording this as a reminder to myself why I bought this stock.]