Should You Buy MST Golf Stock?

Hi pakcik-makcik golfer, dealer dan para pelabur yang saya hormati lagi segani. Since last May, there's been a lot of buzz around MST Golf Group's upcoming IPO. As someone who's been keeping a close eye on the market, I thought I'd share my thoughts on whether MST Golf stock might be a hole-in-one for your portfolio or if you should keep it in the rough.

MST Golf CEO Ng Yap addressing guests during the opening MST store reception on May 27, 2022 at City Square last year.

First off, let's talk about what MST Golf brings to the table. They're the big cheese in golf retail across Malaysia, Singapore, and Indonesia, with a whopping 50 locations. We're talking about a company that's been in the game since 1989 and offers everything a golf lover could want – from clubs to balls to fancy golf shirts.

MST Golf Super Store Puma and GFore Displays.

Now, the numbers from the past few years look pretty sweet. MST Golf has been growing like a weed, with their revenue, gross profit, and net profit all shooting up impressively. They've managed to ride the wave of the recent golf boom, with more people (especially younger folks) getting into the sport during the pandemic.

Harga IPO: RM 0.81/share

Penyenaraian Saham: Pasaran Utama

Tarikh Tutup Permohonan: 23 Julai 2023

tarikh Penyenaraian: 20 Julai 2023

Status Syariah: Patuh Syariah

Graph showing the trend of interest in golf in Malaysia from January 2019 to December 2022, with fluctuations in popularity. (Source: Google Trends)

But here's where it gets interesting. The company is planning to go public soon, and they're asking for RM 0.81 per share. That would value the company at a cool RM 664.90 million. Not too shabby ek?

So, should you grab your clubs and rush to buy when the stock hits the market? Well, hold your horses for a minute, let me put on my black thinking hat and play devil advocate with you. While MST Golf has a strong position and some solid growth behind it, there are a few things to consider: 

1. The golf boom effect: Will the increased interest in golf stick around, or is it just a pandemic fad?
2. Expansion plans: MST Golf wants to spread its wings further in Southeast Asia. That could mean big growth, but it also comes with risks. Indonesia maybe?
3. Competition: The retail world is tough, and specialty stores can face challenges. How will MST Golf keep its edge?
4. Economic factors: With talks of recession and inflation, will people keep spending on golf gear?

IMHO, MST Golf has a lot going for it. They're the top dog in their market, they've shown they can grow, and they're in an industry that's seen a recent surge in interest. If you believe in the long-term prospects of golf and think MST Golf can keep up its momentum, it could be an interesting addition to your portfolio.

However, as with any IPO, there's a lot of uncertainty. We don't have a long history of public financial reports to look at, and the price might be a bit inflated due to the initial excitement.

My advice? If you're a kipas-susah-mati golfer (die-hard-fan); makan golf, minum golf, main golf, kawin pun dengan golf 🙄- and of course, you do believe in the company's future, consider buying some shares - but maybe don't bet the farm on it. It might be wise to start with a small position and see how things play out in the first few quarters after the IPO.

Remember, investing is a bit like golf itself – it takes patience, strategy, and sometimes a bit of luck. So, whether you decide to tee off with MST Golf stock or not, make sure it fits into your overall investment game plan.

What do you think? Are you excited about MST Golf's potential, or are you planning to sit this round out? Let me know in the comments!

P.S. My Boss mentioned that to succeed, one must concentrate solely on their career; "Having a partner or being committed is merely a waste of time. Do top figures like the owners of Tesla and Apple even have time for such commitments?" I simply nodded as if I'm in agreement and said "Well, it depends," but inwardly I thought: "Excuse me, I beg to differ! At least both of them still got wifey and kids. But never mind, you do your thing, and I'll do mine. As long as I wake up in the morning, you are not the first face I see," Sabar Suzlin, sabar. An assistant should remain neutral, one must act dumb. Ini orang tua, kita kena respect orang tua. Nasib baik jenis sedap mata memandang 😝

Disclaimer: All information in this blog is intended for general knowledge and informational purposes only, and does not constitute financial advice. It's essential to conduct thorough research or consult with a financial advisor before making investment decisions.