Activity 2
Discovering Hidden Values at APM Automotive –
A Guided Research Trip with Teng Boo
Date: 16 July 2024 (Tuesday)
Time: 11:30AM – 3:30PM
Location: APM facilities at Pandamaran Industrial
Estate, Port Klang.
As individual investors, one of the greatest challenges
we face is understanding the companies we invest in
beyond what financial statements can reveal. Meeting and
talking to the management, seeing operations firsthand
and grasping a company’s culture are typically luxuries
reserved for institutional investors.
However, thanks to ICAP Fan Club, individual investors like
you and me are breaking the barriers to become smarter investors.
On 16 July 2024, the ICAP Fan Club organised its inaugural
research site visit to APM Automotive Holdings Berhad (“APM”),
a Bursa Malaysia Main Market listed company that is a prominent
player in Malaysia’s automotive parts manufacturing sector.
Headquartered in the bustling Pandamaran Industrial Estate
in Port Klang, APM has grown significantly since its humble
beginnings in 1971 to become a leading supplier to major
OEMs in Malaysia and beyond.
Guiding us through this insightful visit was Mr Tan Teng
Boo, Designated Person of icapital.biz Berhad, seasoned Fund
Manager of Capital Dynamics and Vice President of the ICAP
Fan Club. His expertise in value investing and meticulous
research methodologies set the stage for a profound learning
experience.
The half-day visit commenced with a briefing by Teng Boo,
setting expectations and equipping 17 of us participants
with essential reading materials and insights into investment
strategies. Armed with APM’s annual and quarterly reports
courtesy of Capital Dynamics and recommended readings by
Benjamin Graham and Philip Fisher, we delved into Teng Boo’s
3-stage investment process: Research, Analysis, and Decision-making.
“For Capital Dynamics, research is always the most important,
taking 60% to 80% of our time and effort, followed by analysis,
which takes 15% to 35%. When proper and sufficient research
is done, it takes only 5% or less of our time and effort
to make an investment decision,” said Teng Boo.
Welcomed graciously by Dato Robert Tan Eng Hwa, the CEO of
APM and his team, we embarked on a comprehensive journey
through APM’s history, divisions, and global footprint.
From suspension systems to heat exchange units and more,
APM’s commitment to quality and innovation was evident throughout
the corporate presentation. Despite the challenges of international
expansion, APM remains steadfast, poised for future growth.
“The only way to know or determine where APM stands in terms
of global market is to go outside Malaysia and compete.”
said Dato’ Robert Tan with confidence.
A lively Q&A session followed, providing members with direct
access to APM’s leadership team.
Dato Robert Tan and his team consisting of Group CFO Ms Catlyn
Khoo, Head of Malaysia Operation, Mr Wolrence Siew, Senior
General Manager, Suspension Division, Mr. Ng Boon Hooi, Deputy
Finance Manager, Mr Christopher Kim, General Manager of APM
Coil Springs, Mr Yeoh Lam Guan, and Executive Assistant to
the Group CEO, Mr Kelvin Lee responded to the questions from
our members patiently.
Their insights into market challenges, operational strategies,
and future prospects enriched our understanding and investment
perspectives.
The highlight of the visit was the plant tour, where members
witnessed firsthand the intricate processes behind APM’s
coil springs, suspension systems, and shock absorbers.
Most of APM’s facilities are automated. Some of the plants
were rather hot due to the heat generated by the lines of
machines. Even so, the facilities managers patiently toured
the members of ICAP Fan Club and diligently explained the
plant processes and products. My hats off to the APM team.
Back at Capital Dynamics’ office, a debriefing session allowed
members to share their insights and further hone their research
skills under Teng Boo’s guidance.
We extend our heartfelt thanks to Dato’ Robert Tan and the
entire APM team for their warm hospitality and invaluable
insights.
Special thanks also go to Capital Dynamics and the organising
committee consisting of Mr Tan Teng Boo, Mr Teh Chong Leng,
Mr Mok Zhen Yick, Ms Tan Mun Lin, Ms Che Hui Shan, Ms Teo
Hui Xin and Ms Chang Yi Xin, for making this enriching experience
possible.
The ICAP Fan Club looks forward to organising more insightful
visits and activities, empowering members to make informed
investment decisions and fostering a community of knowledgeable
investors.
In conclusion, the APM site visit was not just a glimpse
into a company but a transformative experience that underscored
the importance of thorough research and informed decision-making
in the world of investing. Here’s to more learning journeys
ahead!
Loh Hang Pai
Your President
