Good results coupled with un-demanding valuations being recognised

April 2024

As we find ourselves mid-way through first quarter reporting season, it’s pleasing to see good results coupled with un-demanding valuations being recognised for several of our companies.

Yue Yuen (a pan-Asian shoe manufacturer) is a good example. It hasn’t been an easy hold as Covid disrupted both supply chain logistics and Chinese retail operations, but having jumped 30% on the fourth quarter results announcement in March (when the market could no longer ignore the rapid recovery of their operations and profits), the share price jumped another 30% in April on the back of a positive profit alert: this quarter’s profit will be approximately double last year’s. Even after the share price rises, the stock trades on 10x historic earnings – frugal for a company with growing earnings and a 6.5% covered dividend yield.

Speaking of Asia, Charles spoke with the legendary fund manager Angus Tulloch at the Library of Mistakes. It is well worth listening to Angus’ reflections on his career and experiences, a fund manager who worked for half a century through booms and busts, in an exciting area and time for the markets. You can watch the video here.

We are also pleased to attach the latest fund factsheet.