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Nick Sleep

Matichon
BKK:MATI
2002-Unknown
Industry: Thailand Newspaper
Category: Value/Asset-Light Brand

Context
3.2% of the fund, Nomad Partnership is the 3rd largest shareholder
Thailand's 2nd largest newspaper, liberal leaning
Founding family owned 25% of shares

Why the Company is Mispriced
Majority of revenue comes from advertisement, making the revenue cyclical

Alternative View
Trading for 4x estimated normalized FCF
no debt
Management is also focused on raising long-term readership, margins, not wasting cash
Nomad believes that the firm is trading 1/3 of it's intrinsic value and 1/4 of it's Western peers
Furthermore, shareholders enjoy a 9% dividend yield

Result
Matichon shares doubled in price from 2002 to 2006, which is a 15% CAGR.
However, the share price has been relatively flat over the past 24 years.
Do note that the estimate of CAGR does not include dividends

Notably
The Thai Prime Minister, who had been regularly criticised in Matichon, had attempted to takeover the company in 2005.