The recently-listed Bison Consolidated Berhad is the operator of the myNEWs.com convenience store in Malaysia.
myNEWS.com stores has been rapidly mushrooming across Malaysia from just 165 stores in 2013, to nearly double the amount of 294 stores in 2016. Here are some of the financial highlights extracted from Bison’s annual reports:
Number of stores (CAGR over 3 years : 21.23)
Revenue (CAGR over 3 years: 18.68%)
Adjusted Net Profit (CAGR over 3 years: 15.72%)
As you can see from the figures, the company is rapidly growing.
And if you have invested in Bison since IPO last year, your returns to date will be about 59.1%!
That’s why, on the 29th of March 2017, our analyst, together with several MIP graduates, visited Bison’s management at their Annual General Meeting.
Here are the 5 things we’ve learned throughout the AGM.
- Bison is transforming mynews into more than just a convenience store. They started including money changer facilities ( which requires license from Bank Negara) and partnering with Easy Parcel to provide last mile services via the Pgeon partnership. It allows users to opt for their parcels to be dropped off at any of the 320 MyNews stores for collection.
- They are planning to open up optimistically another 70 stores in the current financial year.
- They invested in a new factory to roll out fresh food which provides higher margins. They’ve acquired a freehold vacant land in Rawang, Selangor in 2016 which is close to Bison’s current distribution centre. It will be used to construct a food processing centre expected to be completed in 2018.
- Tobacco products are one of the top selling and defensive products for Bison
- The managing director personally went down from the stage to explain the entire business to their shareholders
With Bison’s Managing Director, Mr Dang Tai Luk
All in all, our analyst and MIP Graduates walked out of the AGM feeling pleased with answers obtained from the management. The directors are very patient in explaining different aspects of the business and their plans.
Disclaimer: All facts and opinions presented are for educational purposes only. This is not a recommendation to buy or to sell. The author(s) involved in the writing of this piece has current vested interest of the company. Please consult a competent professional for expert financial or other assistance or legal advice.