Why Conglomerates Trade At A Discount

A conglomerate is a company that owns a controlling stake in a number of smaller companies which operate independently from each other. There are some famous conglomerates in Malaysia such as [%kiaV%], [%DdKh%], BJCORP and so on. Surprisingly, even Google operates as a conglomerate under the name Alphabet Inc., listed on Nasdaq rather than Google itself. However, despite their diverse holdings, conglomerates often trade at a discount compared to the cumulative value of their individual parts.

Today, let's delve into why conglomerates tend to face this discount and explore an example using [%EkGw%], [%EwxZ%], [%qPPD%], and SGX:G13 as a case study!

Have you spotted any other significant discounts? Let us know in the comment section below!

Why Conglomerates Trade At A Discount

A conglomerate is a company that owns a controlling stake in a number of smaller companies which operate independently from each other. There are some famous conglomerates in Malaysia such as $KLSE-GENTING, $KLSE-HAPSENG, BJCORP and so on. Surprisingly, even Google operates as a conglomerate under the name Alphabet Inc., listed on Nasdaq rather than Google itself. However, despite their diverse holdings, conglomerates often trade at a discount compared to the cumulative value of their individual parts.

Today, let's delve into why conglomerates tend to face this discount and explore an example using $KLSE-GENTING, $KLSE-GENM, $KLSE-GENP, and SGX:G13 as a case study!

Have you spotted any other significant discounts? Let us know in the comment section below!

$GENP / 2291 (GENTING PLANTATIONS BERHAD)

$HAPSENG / 3034 (HAP SENG CONSOLIDATED BERHAD)