Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

Analysis on GARP with strong economic moats

GARP with strong economic moats

Equity Bottom-Up

<ul><li>We have researched NagaCorp as a potential beneficiary of lifting travel restrictions, growing tourism in Cambodia, and massive internal expansion projects.</li><li>This company paid out ~70% of profits on average in the last five years before pandemics and is currently attractively priced.</li><li>Multiples: 2.3x EV/2019 Revenue and 6.55x EV/2019 EBITDA at $4+ bn. Market Cap.</li><li>We have observed stable margins, monopoly, and tax advantages versus competitors.</li><li>Risk of the exacerbated growth plan, excessive dilution, and prolonged COVID effects - for us, the risk outweighs the potential reward.</li></ul>

We have researched NagaCorp as a potential beneficiary of lifting travel restrictions, growing tourism in Cambodia, and massive internal expansion projects.This company paid out ~70% of profits on average in the last five years before pandemics and is currently attractively priced.Multiples: 2.3x EV/2019 Revenue and 6.55x EV/2019 EBITDA at $4+ bn. Market Cap.We have observed stable margins, monopoly, and tax advantages versus competitors.Risk of the exacerbated growth plan, excessive dilution, and prolonged COVID effects - for us, the risk outweighs the potential reward.

NagaCorp Ltd: Appealing At First Sight But Risky Underneath