I like GSH Corporation (BDX.SI)

Can you guess what does the initials of “GSH” stand for?

I think its for “Goi Seng Hui”, who is more popularly known as Sam Goi, the popiah king.

Malaysian properties

My first impression of GSH Corp quite negative. So many Malaysian properties? Isn’t it well known that there is great over supply of homes in Malaysia, especially our nearby JB. How to compete with the thousands of units of County Garden?

On closer look, here are what impressed me:

  • Main concentration of properties are in beach facing prime land in Kota Kinabalu, Sabah. Better than oversupplied Iskandar!
  • Eaton Residences is high end service apartment in the heart of KL city centre. To date, almost all of the non-Bumiputra units have been sold.
  • Building the tallest landmark in Malaysia, and 3rd tallest in the world when it is completed in 2024. Its going to be a luxury residential project sitting on prime land in the heart of KL’s Chinatown. Probably why they are raising money via issuing bonds.
  • The Pacific Sutera Hotel and Magellan Hotel are both top hotels in Sabah. Strong recurring income from their hospitality business. Increased steadily from 2014 to 2017.

Sold flagship GSH building in 2017

  • Sold flagship GSH building in 2017. After and redeveloping them, sold this Grade A commercial property at Raffles Place at a high. Smart move.

Surprising low debt levels

  • Debt to asset at 0.375, and Total Debt to Equity at 0.829. These debts levels are surprising low.

Sam Goi buying GSH shares

  • Insider buying. Sam Goi has been buying his own shares. Recent couple of months, he bought about S$3.7M worth of shares at 0.47. Last Dec, he bought about S$2.1M worth of shares at 0.50.  He currently owns 49.86% of GSH. There has been zero insider sales.

Why I am analyzing GSH Corp? Am I buying their shares?

I probably will, but I just bought GSH Corp 5.15% 2021 bonds.

There are 2 nice protection for bond holders for GSH 5.15%. The bond can be redeemed at par at bondholders option if :

  1.  Sam Goi and his immediate family cease to own in at least 35 per cent of the issued share capital of GSH.
  2.  The shares of GSH cease to be listed for trading on the SGX-ST; or when trading of GSH shares on the SGX-ST is suspended for a period exceeding 9 consecutive market days.

I am satisfied that Sam Goi is financially savvy with great business acumen. I am willing to lend money to a company, which is 50% owned by the 10th richest billionaire in Singapore. (https://www.forbes.com/singapore-billionaires/list/#tab:overall)

GSH latest annual report can be found here : http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementLast3MonthsSecurity&F=FGAJLZ015IXVYNVP&H=8916ff3a51ffe434e1e42b905aa1e57fe6d05bcce6f2dac26cc27dd4d84bc17b&fileId=GSH%20-%20Annual%20Report%20FY2017.pdf

GSH latest AGM slides can be found here: http://infopub.sgx.com/FileOpen/GSH_AGM_Presentation_Slides_FY2017_FINAL.ashx?App=Announcement&FileID=500167

GSH Corporate official web site : http://www.gshcorporation.com/our_business_property_dev.html


  • I'm a remisier with Maybank Kim Eng, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please contact me regarding how to become my client; It's free!