Credit Bureau Asia Limited | Alpha Quadrant by The Fifth Person

Questions › Category: Business Quadrant › Credit Bureau Asia Limited

Manferd Hoe asked 1 year ago

Hi, i researching for Credit Bureau Asia Limited, Ticker symbol: TCU.
I like to have an opinion about this business, especially I encounter... well... I call it mysteries to me.

Lack of coverage
Lack of competitors

The company is.. well... very profitable, asset-light, and in a net cash position. A lot of boxes being ticked here.

but I can't stop wondering why there isn't any competition against this company.

you may look at what I found so far via this doc link: https://drive.google.com/file/d/1exgodV-S9ujlHjDsy9-2SVvyN03NBKon/view?usp=drive_link
the link may not be usable once I find new insight/info to supplement it.
Please have a look and share any feedback about what I think or anything I missed out.

Thank you!

2 Answers

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Victor Chng Staff answered 1 year ago

Hi Manferd,

I am unable to access the link. I think the points you mentioned are valid. The lack of coverage or awareness may have kept this company under the radar.

Most people I’ve asked don’t even know they have a credit score, which is quite different from the U.S., where credit scores play an important role.

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Manferd Hoe answered 1 year ago

give this a try: https://drive.google.com/file/d/10K2sIyJTMpub-pfGIRZHoc1IY5gEapRK/view?usp=sharing i think in Singapore, people need it to buy... well... commercial properties (I think)...
and the financial institutes want these credit score to see if clients are credit worthy for... credit card, loans etc...

Victor Chng Staff replied 1 year ago

Thanks for sharing your research. Give me sometime to take a look at get back to you.

Manferd Hoe replied 1 year ago

thanks for spending some time looking at it.
Cheers!

Victor Chng Staff replied 1 year ago

Hi Manferd,

I looked through your report already. Keep up the good work. Below are some of my comments:

1. I think using the PE average for this company is challenging at the moment, given its short history as a listed entity and the higher multiples it traded at initially. If I were to value it, I would focus on the current PE and dividend yield. Since the business appears to have a more recurring nature, I would prefer a PE of 15x or lower, along with a dividend yield of over 5%.

2. Regarding its growth, I wouldn’t rely on acquisitions. I believe this company can only grow organically through price increases.