Delong Holdings (SGX:BQO) declared $0.55 dividends!

Just came back from Malaysia and I received a positive news from SGX announcements.

Delong declared an interim dividend of $0.55!

Since October 2017, I’ve been telling many people about Delong and how its CEO is a very reputable and trustworthy individual. The Price-to-Book ratio was below 0.35x and Delong’s business is used a role model for environmental sustainability in China – especially steel plants are known to produce plenty of pollutant. The city’s mayor visited their main plant and praised their efforts towards greenery. Delong is probably one of the rare few players who shut their down plants often to do regular maintenance and leveraged on green technology to minimise impact to the environment.

However, a number of my friends advised against purchasing this stock because of its illiquidity and the general sentiments about S-chips. Back then, I was a bit nervous about holding this company.

I shared my findings via Whatsapp and InvestingNote. Through my own proprietary assessment, I did not see Delong as possible “fraud” stocks like other S-ships. I did my own in-depth analysis of the management’s character, behavior, and values system. I felt a bit better but there is one more thing missing.

After spotting this company on last year’s Vesak Day, I met up with a lady from their accounts department. She worked there for a long time and she was credible. I learned a great deal about Delong Holdings. I am grateful to her for the chance to learn more. Through a mutual friend’s connection, I managed to email one of their independent directors and he responded back in kind with useful information. It built further conviction in my assessment of the management.

It was trading at SGD $2.94 by then.

Based on the interim dividend of $0.55, my yield on cost would be 18.7%! Take $0.55 divided by $2.94.

If you were to buy it today at $6.30, your yield is 8.7%. Take $0.55 divided by $6.3.

Throughout this process, I also managed to connect with some like-minded investors who shared the same conclusions about Ding Liguo. Sometimes, people tell me that management is not meaningful to analyze. But I still stood with my beliefs because it gives me the unique insight and edge into my decision making and portfolio sizing.

Honestly, I am still quite surprised by the dividends!

For those who are interested, I am teaching a separate course to teach you how to identify proper and aligned management who is keen to grow the company and deeper analysis of fundamentals. For those who are keen, drop me an email at kelvesy@gmail.com. The class is going to be very limited and I am not aiming for quantity, only for quality.