Tuesday, September 18, 2018

Singapore’s Home-Grown Billionaire Investor Has 4 Strategies That Everyone Can Follow

Sudhan P.
September 18, 2018

Peter Lim, who is among the wealthiest people in Singapore, is a self-made billionaire who made his riches through investments in Wilmar International Limited (SGX: F34), properties, healthcare businesses and sports.

According to Forbes Singapore’s 50 Richest list, Lim had a net worth of S$2.5 billion (as of 25 July 2018), having cashed out on Wilmar eight years ago.

In 2007, the billionaire gave two separate interviews to The Business Times and The New Paper. From those interviews, I picked out some interesting pointers that investors should keep in mind when it comes to investing in stocks.

Keep emotions in check

The stock market can be extremely volatile.

For instance, last Friday, Singapore’s Straits Times Index (SGX: ^STI) rose around 30 points. Yesterday, the index was down 20 points, erasing much of the gains made last Friday. The same goes for stocks we own. One day, our shares may be down 1%, and the next day, they can rise 2%. We should neither be sad nor happy when such things happen, according to Lim:

“I used to say to my friends, ‘When you are holding stocks, if it goes up, don’t be too happy; when it goes down, don’t be too sad’.

‘Otherwise, how? Your life will also be fluctuating and you’ll die of a heart attack. If you really lose sleep over it, maybe the best way is to keep the money in the bank.’”

An excellent way to keep emotions out of investing is to write down the reasons for buying a stock. If the fundamentals of the company have not changed, but the stock price is coming down for reasons not related to the business, it could be an opportunity to buy more of the company.

Lim also does not track the daily ups and downs of the stocks that he owns. Such “inaction” can also help us shift our focus to the business — and not the stock price.

Assess the management

Lim likes to look at the person running the company when investing. To assess the management of a firm, one has to look at whether the person is honest, and if he or she is an expert in their trade. Lim commented:

“It works. It’s a tested method of assessing companies.”

Warren Buffett, one of the world’s best investors, also likes to access the management of a company before investing in it. The Oracle of Omaha favours company leaders who are honest and competent.

Ride the trend

Lim’s secret to successful investing is “prospect” – he takes a top-down approach and invests in sectors if they have good prospects. He mentioned:

“Like if I think solar is good, I go into solar; if I think palm oil is good, then palm oil.

Share prices go up because the sector grows. So if I think this sector is going to be good in the next 10 years, then I’ll just invest in it.”

It is much easier to ride the wave than go against it.

Have patience

A key ingredient to Lim’s success is patience. He does not like to trade – which is to buy one day and sell the next to lock in profits. He said that “people who get rich are those who buy a company, build it, run it”.

In The New Paper interview, he had advice for young investors (which could also apply to all):

“You have to invest with a longer-term mindset. You buy a good stock, leave it there for 10 years. Come 10 years, this dollar can be many, many multiples.

I think the trick is really to think long-term.

You may not have a lot of money, but you have a lot of time.

The minimum length of my investments are five to six years, if not 10 to 12 years.”

It takes time for businesses to grow; they certainly do not flourish overnight. Warren Buffett once remarked that we should only buy something that we would be perfectly happy to hold if the stock market was shut down for the next 10 years.

The Foolish takeaway

Peter Lim made his wealth through patient, long-term investing. He did not worry about the short-term fluctuations of the stock market. In fact, a week before the interview with The New Paper, Singapore’s stock market took a sharp dive, wiping out more than $100 million of his stock’s value. However, Lim was unruffled. Having been through many crashes and financial crises, he knew that things would turn out fine after all, and it did.

During our investing journey, we, too, would be hit by many stock market ups and downs. However, if we focus on the right things, we would do just fine as well.


Tuesday, December 19, 2017

Rowsley to buy Thomson Medical businesses for $1.6b

By Marissa Lee
Published 19.12.2017
The Straits Times

Billionaire Peter Lim is injecting the privately held Thomson Medical Group and other healthcare assets into the Singapore-listed real estate firm Rowsley for $1.6 billion.

The deal is expected to be completed in the first quarter of next year. Rowsley will then be renamed Thomson Medical Group to reflect its change in focus to healthcare.

Rowsley will acquire Thomson Medical, the provider of healthcare services for women and children in Singapore which Mr Lim privatised for around $513 million in 2010.

It will also acquire a 70.36 per cent stake in Malaysia-listed TMC Life Sciences (TMCLS), which has a market cap of RM1.47 billion (S$485.5 million).

TMCLS owns the 200-bed Tropicana Medical Centre in Klang Valley, Kuala Lumpur, and plans to add 400 more beds at the end of 2020.

TMCLS also plans to complete Thomson Iskandar Medical Hub in Rowsley's Vantage Bay Healthcare City in 2021.

After paying for the purchase by issuing 21.3 billion new shares to Mr Lim at 7.5 cents apiece, Rowsley's market cap would swell to $2.13 billion. That would make Rowsley larger than rival hospital player Raffles Medical Group, which has a market cap of $1.93 billion, Rowsley told a briefing at the Goodwood Park Hotel yesterday.

Rowsley shares surged 2.5 cents, or 22.52 per cent, to 13.6 cents yesterday after the deal was announced, and was the top active counter with 305.8 million shares changing hands.

Rowsley announced plans in July to spend up to $1.9 billion to buy Mr Lim's healthcare assets and acquire one or more other medical practices. These other acquisitions did not pan out, it said yesterday.

After Mr Lim's asset injection, roughly two-thirds of Rowsley's revenue will come from healthcare, said Thomson Medical executive chairman Roy Quek.

Thomson Medical and Mr Lim's share of TMCLS raked in $199.4 million in revenue in the 12 months to Aug 31, up from $193.3 million in the same period a year earlier.

These assets generated a net profit of $32.8 million, up from $26.7 million in the year before.

Rowsley plans to undertake a strategic review of its non-healthcare assets, including real estate, consultancy and hospitality operations, once shareholders approve the deal.

Healthcare is a hot sector in Singapore as its population ages.

Dr Beng Teck Liang, chief executive of Catalist-listed clinic operator Singapore Medical Group, welcomed the entrance of a new listed healthcare player in the local market. He told The Straits Times: "It's good because it raises the profile of all healthcare companies, when it's such a large listing.

"Hopefully we can do a bit more to raise Singapore's profile in the region, so that we can attract more medical tourism. A lot of growth is coming from the region."

Wednesday, July 19, 2017

Singapore's Rowsley to buy healthcare assets for up to S$1.9b

19 Jul 2017

SINGAPORE: Singapore's mainboard-listed Rowsley Ltd on Tuesday (Jul 18) announced plan to expand into the healthcare sector with the signing of a non-binding term sheet to purchase the healthcare assets of its controlling shareholder, Lim Eng Hock, worth about S$1.9 billion (US$1.4 billion).

Rowsley is a multi-disciplinary real estate company with businesses in design and engineering, real estate development and hospitality.

A sales and purchase agreement is expected to be completed within two months.

The proposed acquisition is an all-share deal for a 100 per cent of Thomson Medical Pte Ltd and a 70.36 per cent stake in TMC Life Sciences Bhd (TMCLS), a Bursa Malaysia-listed company.

Thomson Medical is one of Singapore’s leading providers of healthcare services for women and children while TMCLS is a healthcare company which mainly operates through Tropicana Medical Centre, its flagship hospital.

The proposed acquisition will be financed through the issuance of new shares at S$0.075 per share.

“This proposed acquisition is an opportunity for us to acquire controlling stakes in two established healthcare assets in Singapore and Malaysia and be part of an expanding business,” said Rowsley Chairman, Ng Ser Miang in a statement.

“Healthcare is a big and growing market due to ageing demographics, longer lifespan, major trends to increase birth rates, and growing affluence. This deal will diversify Rowsley’s portfolio as well as strengthen our current businesses. It will also significantly increase Rowsley’s market capitalisation, market profile, and generate investor interest,” said Ng.

The proposed acquisition will also bring TMCLS's proposed Thomson Iskandar project in Iskandar, Johor, together with Rowsley's investment in Vantage Bay Healthcare City.

Thomson Iskandar is an integrated development that comprises a 500-bed general hospital, 400 medical suites and a retail mall.
The hospital will be equipped with state-of-the-art facilities and equipment.

“We will be able to derive synergy from combining both projects together under one company. Our enlarged company profile will further help us to attract high-quality healthcare players and investors to work with us on our Iskandar healthcare project,” said Ng.

Upon completion, Rowsley planned to issue bonus warrants to existing shareholders on the basis of two bonus warrants for every one existing share.

Each bonus warrant will have an exercise price of S$0.09 per share.

In addition, Rowsley planned to issue additional warrants (piggyback warrants) on the basis of one piggyback warrant for every one bonus warrant that is exercised.

Each piggyback warrant will have an exercise price of S$0.12 per share.

“We appreciate the support of our existing shareholders. The proposed issue of warrants is to reward our shareholders for their support of the firm. We will continue as a company to pursue opportunities that we believe provide long-term value to shareholders,” Ng said.

Upon completion of the deal, Rowsley will become a major healthcare player.

According to Singapore Exchange Market Watch statistic, healthcare is projected to be the leading sector in total returns to shareholders.

Singapore has boosted healthcare spending in recent years as its population ages.

One in four Singaporeans will be aged 65 and above by 2030, and similar demographics in Malaysia point towards an opportunity in primary healthcare and long-term healthcare.

“We are extremely excited at this opportunity to further transform Rowsley as we continue to build and grow our existing real estate related businesses,” said Ng.

Source: Bernama/de

Read more at http://www.channelnewsasia.com/news/business/singapore-s-rowsley-to-buy-healthcare-assets-for-up-to-s-1-9b-9043284

Tuesday, September 13, 2016

Thomson Medical eyes S'pore listing in near term

By Claire Huang
Sep 13, 2016

AWAY from the public eye, Thomson Medical Pte Ltd, controlled by Singapore billionaire Peter Lim, has been busy growing its services and is now looking to add more beds to its hospital in Novena as it works towards a local listing in the near future.

Roy Quek, who took over as chairman of Thomson Medical last November, told The Business Times in an interview that he had aimed for a Singapore listing within 12 to 18 months of helming the business.

"If we were to do a listing now, we'd probably have a market capitalisation of S$2-3 billion. I think we can do better. We're targeting S$5 billion for a start and trying to grow that."

Thomson Medical is owned by Mr Lim's Singapore-based holding company Sasteria Pte Ltd, which also controls Thomson affiliates in Malaysia and Indonesia.

As it prepares to list the holding company, Thomson Medical has been beefing up in Singapore, Malaysia and Indonesia through mergers and acquisitions (M&As), said Mr Quek, who is also executive director and group chief executive of Malaysia-listed TMC Life Sciences Bhd (TMCLS).

In Singapore, the private healthcare provider wants to ramp up its tertiary hospital with 300 more beds as the 190-bed Thomson Medical Centre (TMC) is at full capacity, even as birth rates here decline.

This is part of a wider vision of a Singapore healthcare "precinct" - much like a mini replica of Vantage Bay Healthcare City in Iskandar but without the education and research arm. Patients who live in this precinct can access not just the hospital, but also other facilities including rehabilitation and day care centres in one integrated location.

The company hopes to turn the Singapore precinct into its flagship in the next five years, while concurrently expanding its businesses in Malaysia and Indonesia.

"If you're somebody with young kids or elderly parents or parents- in-law and you're very concerned with what happens to them when you go to work, this (precinct) basically looks after everybody for you. If you need home care, it's there," said Mr Quek, who added that this model can be planned and executed seamlessly, making it more cost effective and efficient.

In time to come, primary care and specialist outpatient operations would be housed in centres located islandwide. Patients would then be able to head to these centres for their outpatient needs, top up health foods or go for a sports massage, among other things, he shared.

"The idea is to build a system that allows us not just to tap the top private sector doctors alone but find ways to have partnerships with the public sector," he said, adding that the company is also keen to work with the government to build hospitals.

In the near term, Mr Quek wants to integrate up- and downstream operations to provide what he described as "cradle to grave" coverage, where the healthcare provider caters not only to consumers' primary stages of life but also follows them through their adulthood and well into their silver years.

In line with this, Thomson Medical has branched into the lifestyle and wellness segments to help consumers "maintain their healthy parts as long as possible".

Also in the pipeline is its plan to go big on telehealth and electronic health services to cater to those who are in good health and mobile.

All these are signs that Thomson Medical has moved on from troubles of the past after the current management took over in late 2010, at about the same time when the then-listed TMC came under fire after its fertility centre botched an in-vitro fertilisation (IVF) procedure by impregnating a woman in January 2010 with another man's sperm instead of her husband's.

Following the management change, Thomson Medical has grown beyond its core business of women's and children's health within a span of five years into a multi-disciplinary healthcare provider that comprises 25 specialist outpatient clinics in FY2016, up from 11 in FY2011. These include services such as dermatology, aesthetics, women's cancer and dental care.

And the efforts to expand have yielded results. Between FY2010 and FY2016, revenues and earnings before interest, taxes, depreciation and amortisation (Ebitda) have doubled.

Topline grew from the S$50 million-S$100 million range to the current range of S$150 million-S$200 million. The hospital continues to contribute the bulk of the revenue at 57.4 per cent for the financial year as at end-August 2016, followed by the fast-growing specialist segment at 38.9 per cent.

Across the Causeway, the company is awaiting official approval and hopes to start the development of Vantage Bay by year-end. The RM5 billion (S$1.67 billion) integrated healthcare hub would comprise specialist, community and teaching hospitals, long-term care facilities, a medical school, research and training institutions, purpose-built urban wellness resort, wellness retail services and other associated facilities.

Further down the road, Thomson Medical is looking to widen its reach to China, India and Australia - ambitions that the Singapore listing would help fund, said Mr Quek.

For now, his greatest concern is not about a potential listing at a time of economic slowdown and market volatility, although he acknowledged that these could be tricky. Still, he believes investors are receptive to healthcare businesses.

"My biggest challenge going forward is to ensure our clinical quality and assurance in my team - that's what keeps me up (at night). I certainly believe the doctors are good and we have the right system in place, but with size, you worry."