I was recently going through the smallest stocks in Singapore and found an interesting little company.
TSH Corporation Limited ($KUH)
They run a couple of whisky bars in Singaporean hotels. They also import and distribute whisky, and buy whole casks to bottle them under their own labels.
The business is doing well.
Revenue has grown through the opening of additional outlets, gross margins are consistently above 70%, and they have a certain operating leverage, through a large fixed cost block.
The stock trades at 5x earnings, about 5x EV/EBIT, and 77% of NCAV.
On the asset side, most of it is inventory (whisky bottles and casks), bought years ago at lower prices.
They also repaid all bank debt, and only then did they start to pay a dividend.
I think highly of the management. The CEO has a background in auditing (worked at KPMG), and he runs the business in a sustainable and calculated way.
He has also been repeatedly buying shares in the open market.
And the company has recently taken over a direct competitor.
The downside here is that the float is small (just above 20%), the stock is tiny (S$6.39mm market cap), and illiquid. So it's only really suitable for a personal account.
What do you think about it? I know most people here won't even be playing in stocks that small. Still, I would love to hear what those who do think.
I shared my thoughts in more detail here: [https://www.deepvalueinsights.com/p/overlooked-net-net-at-5x-earnings](https://www.deepvalueinsights.com/p/overlooked-net-net-at-5x-earnings)
