Group Assignment:

Stock Market Portfolio Project

By

Ahmad Zaki Fakhri (PBS 18112240)

Lee Zhen Xiang (PBS 18207060)

Investment Analysis (FIN 7202)

Dr. Norhanim Mat Sari

Putra Business School

 Table of Contents

Stock Portfolio (Graphs & Tables).......................................................................................................... 3

Current Events and Analysis .................................................................................................................. 8
Reflection 1 ......................................................................................................................................... 8
Reflection 2 ......................................................................................................................................... 9
Reflection 3 ....................................................................................................................................... 10
Company Background .......................................................................................................................... 12
Final Analysis of Stock Portfolio .......................................................................................................... 15
References ............................................................................................................................................ 17
Stock Portfolio (Graphs & Tables)

BUREAU VERITAS (BVI) STOCK

EURONEXT PARIS
Date Open High Low Close Adj Close Volume #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss CAC Ind Open CAC Ind Close Gain/Loss (EUR) % Gain/Loss2
Buy-In Bureau Veritas (BVI) Stock
01/10/2019 € 22,24 € 22,37 € 21,83 € 21,83 € 21,83 512.475 97 9.967 9.783 - 184 -1,84% € 2.281,00 € 2.251,98 € 29,02 1,27%
02/10/2019 € 21,83 € 21,85 € 21,34 € 21,48 € 21,48 1.174.387 97 9.967 9.626 - 341 -3,42% € 2.251,97 € 2.191,30 € 60,67 2,69%
03/10/2019 € 21,45 € 21,56 € 21,18 € 21,38 € 21,38 455.451 97 9.967 9.581 - 385 -3,87% € 2.191,39 € 2.199,47 -€ 8,08 -0,37%
04/10/2019 € 21,35 € 21,55 € 21,29 € 21,55 € 21,55 432.782 97 9.967 9.657 - 309 -3,10% € 2.199,40 € 2.215,77 -€ 16,37 -0,74%
07/10/2019 € 21,50 € 21,61 € 21,34 € 21,55 € 21,55 619.826 97 9.967 9.657 - 309 -3,10% € 2.215,55 € 2.222,55 -€ 7,00 -0,32%
08/10/2019 € 21,50 € 21,53 € 21,16 € 21,23 € 21,23 434.326 97 9.967 9.514 - 453 -4,54% € 2.222,52 € 2.195,75 € 26,77 1,20%
09/10/2019 € 21,18 € 21,32 € 21,01 € 21,25 € 21,25 655.633 97 9.967 9.523 - 444 -4,45% € 2.195,75 € 2.209,30 -€ 13,55 -0,62%
10/10/2019 € 21,28 € 21,38 € 21,00 € 21,38 € 21,38 720.524 97 9.967 9.581 - 385 -3,87% € 2.209,30 € 2.224,91 -€ 15,61 -0,71%
11/10/2019 € 21,38 € 21,77 € 21,35 € 21,61 € 21,61 802.507 97 9.967 9.684 - 282 -2,83% € 2.224,91 € 2.265,08 -€ 40,17 -1,81%
14/10/2019 € 21,65 € 21,65 € 21,34 € 21,42 € 21,42 589.270 97 9.967 9.599 - 367 -3,69% € 2.265,02 € 2.257,45 € 7,57 0,33%
15/10/2019 € 21,42 € 21,86 € 21,42 € 21,77 € 21,77 617.296 97 9.967 9.756 - 211 -2,11% € 2.257,41 € 2.276,54 -€ 19,13 -0,85%
16/10/2019 € 21,75 € 21,81 € 21,64 € 21,78 € 21,78 662.036 97 9.967 9.760 - 206 -2,07% € 2.276,54 € 2.270,42 € 6,12 0,27%
17/10/2019 € 21,82 € 22,02 € 21,64 € 21,68 € 21,68 668.075 97 9.967 9.716 - 251 -2,52% € 2.270,42 € 2.272,79 -€ 2,37 -0,10%
18/10/2019 € 21,57 € 21,91 € 21,57 € 21,64 € 21,64 531.369 97 9.967 9.698 - 269 -2,70% € 2.272,79 € 2.266,46 € 6,33 0,28%
21/10/2019 € 21,60 € 21,81 € 21,58 € 21,72 € 21,72 441.340 97 9.967 9.734 - 233 -2,34% € 2.266,46 € 2.275,05 -€ 8,59 -0,38%
22/10/2019 € 21,70 € 21,83 € 21,61 € 21,80 € 21,80 377.690 97 9.967 9.769 - 197 -1,98% € 2.275,05 € 2.275,36 -€ 0,31 -0,01%
23/10/2019 € 21,73 € 21,92 € 21,66 € 21,82 € 21,82 626.650 97 9.967 9.778 - 188 -1,89% € 2.275,36 € 2.265,57 € 9,79 0,43%
24/10/2019 € 21,91 € 22,09 € 21,74 € 22,00 € 22,00 552.487 97 9.967 9.859 - 108 -1,08% € 2.265,79 € 2.281,22 -€ 15,43 -0,68%
25/10/2019 € 22,20 € 22,84 € 22,11 € 22,45 € 22,45 1.055.439 97 9.967 10.061 94 0,94% € 2.281,63 € 2.298,95 -€ 17,32 -0,76%
28/10/2019 € 22,43 € 22,64 € 22,35 € 22,46 € 22,46 632.308 97 9.967 10.065 99 0,99% € 2.298,95 € 2.304,85 -€ 5,90 -0,26%
29/10/2019 € 22,44 € 22,75 € 22,30 € 22,75 € 22,75 626.319 97 9.967 10.195 229 2,29% € 2.304,85 € 2.323,80 -€ 18,95 -0,82%
30/10/2019 € 22,66 € 22,92 € 22,62 € 22,82 € 22,82 591.085 97 9.967 10.227 260 2,61% € 2.323,46 € 2.331,76 -€ 8,30 -0,36%
31/10/2019 € 22,83 € 22,97 € 22,67 € 22,89 € 22,89 704.482 97 9.967 10.258 291 2,92% € 2.333,54 € 2.323,03 € 10,51 0,45%
01/11/2019 € 22,89 € 23,13 € 22,77 € 22,99 € 22,99 541.580 97 9.967 10.303 336 3,37% € 2.323,03 € 2.343,13 -€ 20,10 -0,87%
04/11/2019 € 22,99 € 23,12 € 22,92 € 22,99 € 22,99 798.882 97 9.967 10.303 336 3,37% € 2.343,13 € 2.360,44 -€ 17,31 -0,74%
05/11/2019 € 22,96 € 23,01 € 22,85 € 22,94 € 22,94 577.719 97 9.967 10.280 314 3,15% € 2.360,44 € 2.356,88 € 3,56 0,15%
06/11/2019 € 22,90 € 23,29 € 22,85 € 23,08 € 23,08 717.295 97 9.967 10.343 376 3,78% € 2.356,88 € 2.362,96 -€ 6,08 -0,26%
07/11/2019 € 23,14 € 23,37 € 22,91 € 23,34 € 23,34 922.080 97 9.967 10.460 493 4,95% € 2.363,21 € 2.369,95 -€ 6,74 -0,29%
08/11/2019 € 23,15 € 23,22 € 22,58 € 22,79 € 22,79 824.464 97 9.967 10.213 246 2,47% € 2.369,95 € 2.371,51 -€ 1,56 -0,07%
11/11/2019 € 22,67 € 22,79 € 22,62 € 22,67 € 22,67 758.968 97 9.967 10.159 193 1,93% € 2.372,46 € 2.375,24 -€ 2,78 -0,12%
12/11/2019 € 22,80 € 22,95 € 22,65 € 22,87 € 22,87 667.373 97 9.967 10.249 282 2,83% € 2.375,23 € 2.391,02 -€ 15,79 -0,66%
13/11/2019 € 22,80 € 23,41 € 22,80 € 23,24 € 23,24 899.201 97 9.967 10.415 448 4,50% € 2.391,01 € 2.386,67 € 4,34 0,18%
14/11/2019 € 23,20 € 23,26 € 22,93 € 22,96 € 22,96 671.386 97 9.967 10.289 323 3,24% € 2.386,67 € 2.392,77 -€ 6,10 -0,26%
15/11/2019 € 22,96 € 23,12 € 22,84 € 23,02 € 23,02 518.844 97 9.967 10.316 350 3,51% € 2.392,77 € 2.406,93 -€ 14,16 -0,59%
18/11/2019 € 22,96 € 23,09 € 22,83 € 23,05 € 23,05 735.952 97 9.967 10.330 363 3,64% € 2.406,93 € 2.394,62 € 12,31 0,51%
19/11/2019 € 23,03 € 23,57 € 23,03 € 23,24 € 23,24 593.477 97 9.967 10.415 448 4,50% € 2.394,62 € 2.394,10 € 0,52 0,02%
20/11/2019 € 23,34 € 24,05 € 23,19 € 23,88 € 23,88 1.335.787 97 9.967 10.702 735 7,37% € 2.394,10 € 2.390,16 € 3,94 0,16%
21/11/2019 € 23,65 € 23,98 € 23,51 € 23,96 € 23,96 863.064 97 9.967 10.737 771 7,73% € 2.390,27 € 2.382,82 € 7,45 0,31%
22/11/2019 € 23,90 € 24,11 € 23,75 € 23,95 € 23,95 792.765 97 9.967 10.733 766 7,69% € 2.382,82 € 2.381,18 € 1,64 0,07%
25/11/2019 € 24,02 € 24,16 € 23,90 € 24,01 € 24,01 642.533 97 9.967 10.760 793 7,96% € 2.381,19 € 2.392,67 -€ 11,48 -0,48%
26/11/2019 € 23,98 € 24,14 € 23,82 € 24,02 € 24,02 1.389.382 97 9.967 10.764 798 8,00% € 2.392,66 € 2.403,32 -€ 10,66 -0,45%
27/11/2019 € 24,00 € 24,20 € 23,79 € 24,05 € 24,05 840.422 97 9.967 10.778 811 8,14% € 2.403,32 € 2.394,72 € 8,60 0,36%
28/11/2019 € 23,95 € 23,95 € 23,69 € 23,88 € 23,88 614.211 97 9.967 10.702 735 7,37% € 2.394,37 € 2.387,59 € 6,78 0,28%
29/11/2019 € 23,80 € 23,84 € 23,64 € 23,76 € 23,76 664.255 97 9.967 10.648 681 6,83% € 2.387,59 € 2.380,18 € 7,41 0,31%
 VIZIONE (VIZ) & IOI (IOIPG) STOCK
KUALA LUMPUR STOCK EXCHANGE (KLSE)
Date Open High Low Close Adj Close Volume #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss KLCI Open KLCI Close Gain/Loss (RM)2 % Gain/Loss2
Buy-In Vizione (VIZ) Stock
01/10/2019 0,915 0,915 0,900 0,905 0,905 1.726.900 10.928,00 9.999,12 9.889,84 -109,28 -1,09% 1.584,94 1.589,44 -4,50 -0,28%
02/10/2019 0,900 0,905 0,895 0,905 0,905 2.001.800 10.928,00 9.999,12 9.889,84 -109,28 -1,09% 1.588,85 1.574,90 13,95 0,88%
03/10/2019 0,890 0,905 0,890 0,905 0,905 183.900 10.928,00 9.999,12 9.889,84 -109,28 -1,09% 1.571,96 1.564,12 7,84 0,50%
04/10/2019 0,905 0,905 0,890 0,890 0,890 494.500 10.928,00 9.999,12 9.725,92 -273,20 -2,73% 1.563,89 1.557,67 6,22 0,40%
07/10/2019 0,895 0,895 0,885 0,890 0,890 1.010.700 10.928,00 9.999,12 9.725,92 -273,20 -2,73% 1.557,79 1.559,00 -1,21 -0,08%
08/10/2019 0,890 0,900 0,885 0,895 0,895 544.800 10.928,00 9.999,12 9.780,56 -218,56 -2,19% 1.560,46 1.558,79 1,67 0,11%
09/10/2019 0,895 0,900 0,880 0,900 0,900 1.251.100 10.928,00 9.999,12 9.835,20 -163,92 -1,64% 1.554,73 1.551,23 3,50 0,23%
10/10/2019 0,905 0,905 0,890 0,900 0,900 782.100 10.928,00 9.999,12 9.835,20 -163,92 -1,64% 1.550,70 1.551,87 -1,17 -0,08%
11/10/2019 0,900 0,905 0,890 0,900 0,900 1.635.700 10.928,00 9.999,12 9.835,20 -163,92 -1,64% 1.550,96 1.556,84 -5,88 -0,38%
14/10/2019 0,900 0,900 0,880 0,880 0,880 883.900 10.928,00 9.999,12 9.616,64 -382,48 -3,83% 1.562,65 1.567,59 -4,94 -0,32%
15/10/2019 0,875 0,885 0,870 0,870 0,870 878.300 10.928,00 9.999,12 9.507,36 -491,76 -4,92% 1.567,03 1.566,23 0,80 0,05%
16/10/2019 0,885 0,940 0,885 0,940 0,940 27.250.800 10.928,00 9.999,12 10.272,32 273,20 2,73% 1.568,10 1.574,90 -6,80 -0,43%
17/10/2019 0,940 0,955 0,885 0,885 0,885 6.172.000 10.928,00 9.999,12 9.671,28 -327,84 -3,28% 1.573,04 1.574,50 -1,46 -0,09%
18/10/2019 0,895 0,895 0,880 0,885 0,885 586.800 10.928,00 9.999,12 9.671,28 -327,84 -3,28% 1.572,72 1.571,15 1,57 0,10%
21/10/2019 0,885 0,885 0,865 0,880 0,880 1.622.000 10.928,00 9.999,12 9.616,64 -382,48 -3,83% 1.568,78 1.570,93 -2,15 -0,14%
22/10/2019 0,875 0,880 0,870 0,880 0,880 811.500 10.928,00 9.999,12 9.616,64 -382,48 -3,83% 1.570,27 1.574,09 -3,82 -0,24%
23/10/2019 0,875 0,880 0,865 0,865 0,865 11.329.200 10.928,00 9.999,12 9.452,72 -546,40 -5,46% 1.571,66 1.568,79 2,87 0,18%
24/10/2019 0,865 0,875 0,865 0,865 0,865 354.100 10.928,00 9.999,12 9.452,72 -546,40 -5,46% 1.569,47 1.571,11 -1,64 -0,10%
25/10/2019 0,870 0,870 0,860 0,865 0,865 881.700 10.928,00 9.999,12 9.452,72 -546,40 -5,46% 1.572,92 1.570,00 2,92 0,19%
29/10/2019 0,870 0,870 0,850 0,860 0,860 754.300 10.928,00 9.999,12 9.398,08 -601,04 -6,01% 1.573,16 1.577,79 -4,63 -0,29%
30/10/2019 0,850 0,850 0,825 0,840 0,840 3.760.700 10.928,00 9.999,12 9.179,52 -819,60 -8,20% 1.583,00 1.580,00 3,00 0,19%
31/10/2019 0,840 0,850 0,835 0,850 0,850 1.311.900 10.928,00 9.999,12 9.288,80 -710,32 -7,10% 1.579,14 1.597,98 -18,84 -1,19%
01/11/2019 0,850 0,850 0,830 0,835 0,835 1.108.100 10.928,00 9.999,12 9.124,88 -874,24 -8,74% 1.595,73 1.593,34 2,39 0,15%
Sell-Out Vizione (VIZ) Stock, Buy-In IOI (IOIPG) Stock
04/11/2019 1,050 1,100 1,040 1,090 1,090 768.200,00 8.690,36 9.124,88 9.472,49 347,61 3,81% 1.598,28 1.603,56 -5,28 -0,33%
05/11/2019 1,100 1,130 1,090 1,130 1,130 2.485.500,00 8.690,36 9.124,88 9.820,11 695,23 7,62% 1.599,07 1.606,74 -7,67 -0,48%
06/11/2019 1,130 1,130 1,110 1,110 1,110 525.100,00 8.690,36 9.124,88 9.646,30 521,42 5,71% 1.609,43 1.603,25 6,18 0,38%
07/11/2019 1,110 1,110 1,100 1,110 1,110 1.010.700,00 8.690,36 9.124,88 9.646,30 521,42 5,71% 1.604,85 1.609,33 -4,48 -0,28%
08/11/2019 1,120 1,130 1,080 1,090 1,090 1.851.400,00 8.690,36 9.124,88 9.472,49 347,61 3,81% 1.607,09 1.609,73 -2,64 -0,16%
12/11/2019 1,070 1,110 1,070 1,100 1,100 5.159.000,00 8.690,36 9.124,88 9.559,40 434,52 4,76% 1.612,18 1.609,73 2,45 0,15%
13/11/2019 1,110 1,180 1,110 1,160 1,160 9.578.500,00 8.690,36 9.124,88 10.080,82 955,94 10,48% 1.610,88 1.597,22 13,66 0,85%
14/11/2019 1,160 1,200 1,140 1,180 1,180 10.161.600,00 8.690,36 9.124,88 10.254,63 1129,75 12,38% 1.595,40 1.593,55 1,85 0,12%
18/11/2019 1,170 1,170 1,130 1,140 1,140 1.434.700,00 8.690,36 9.124,88 9.907,01 782,13 8,57% 1.593,09 1.604,36 -11,27 -0,71%
19/11/2019 1,140 1,160 1,130 1,160 1,160 666.700,00 8.690,36 9.124,88 10.080,82 955,94 10,48% 1.601,09 1.605,31 -4,22 -0,26%
20/11/2019 1,160 1,190 1,160 1,160 1,160 3.616.500,00 8.690,36 9.124,88 10.080,82 955,94 10,48% 1.601,42 1.601,14 0,28 0,02%
21/11/2019 1,160 1,170 1,150 1,170 1,170 403.400,00 8.690,36 9.124,88 10.167,72 1042,84 11,43% 1.601,36 1.592,19 9,17 0,57%
22/11/2019 1,160 1,180 1,150 1,180 1,180 1.091.800,00 8.690,36 9.124,88 10.254,63 1129,75 12,38% 1.589,87 1.596,84 -6,97 -0,44%
25/11/2019 1,180 1,180 1,140 1,150 1,150 1.998.400,00 8.690,36 9.124,88 9.993,92 869,04 9,52% 1.595,08 1.591,35 3,73 0,23%
26/11/2019 1,150 1,180 1,150 1,170 1,170 1.105.600,00 8.690,36 9.124,88 10.167,72 1042,84 11,43% 1.589,64 1.583,87 5,77 0,36%
27/11/2019 1,180 1,180 1,160 1,180 1,180 909.400,00 8.690,36 9.124,88 10.254,63 1129,75 12,38% 1.587,64 1.587,18 0,46 0,03%
28/11/2019 1,180 1,180 1,150 1,150 1,150 971.400,00 8.690,36 9.124,88 9.993,92 869,04 9,52% 1.588,08 1.583,77 4,31 0,27%
29/11/2019 1,160 1,160 1,140 1,150 1,150 1.984.200,00 8.690,36 9.124,88 9.993,92 869,04 9,52% 1.585,70 1.561,74 23,96 1,51%
 STOCK PORTFOLIO (ROTI CANAI)
34,25
Stock Symbols #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss
Bureau Veritas BVI 97 9.966,63 9.657,42 - 309,22 -3,10%
Vizione VIZ 10.928 9.999,12 9.725,92 - 273,20 -2,73%
Week 1 (1/10/2019 - 4/10/2019) 19.965,75 19.383,34 - 582,42 -2,92%

Stock Symbols #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss
Bureau Veritas BVI 97 9.966,63 9.684,31 - 282,33 -2,83%
Vizione VIZ 10.928 9.999,12 9.835,20 - 163,92 -1,64%
Week 2 (7/10/2019 - 11/10/2019) 19.965,75 19.519,51 - 446,25 -2,24%

Stock Symbols #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss
Bureau Veritas BVI 97 9.966,63 9.697,75 - 268,88 -2,70%
Vizione VIZ 10.928 9.999,12 9.671,28 - 327,84 -3,28%
Week 3 (14/10/2019 - 18/10/2019) 19.965,75 19.369,03 - 596,72 -2,99%

Stock Symbols #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss
Bureau Veritas BVI 97 9.966,63 10.060,74 94,11 0,94%
Vizione VIZ 8.690 9.999,12 9.452,72 - 546,40 -5,46%
Week 4 (21/10/2019 - 25/10/2019) 19.965,75 19.513,46 - 452,29 -2,27%

Stock Symbols #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss
Bureau Veritas BVI 97 9.966,63 10.302,74 336,11 3,37%
Vizione VIZ 8.690 9.999,12 9.124,88 - 874,24 -8,74%
Week 5 (28/10/2019 - 01/11/2019) 19.965,75 19.427,62 - 538,14 -2,70%

Stock Symbols #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss
Bureau Veritas BVI 97 9.966,63 10.213,11 246,48 2,47%
IOI IOIPG 8.690 9.124,88 9.472,49 347,61 3,81%
Week 6 (04/10/2019 - 08/11/2019) 19.965,75 19.685,61 - 280,15 -1,40%

Stock Symbols #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss
Bureau Veritas BVI 97 9.966,63 10.316,18 349,55 3,51%
IOI IOIPG 8.690 9.124,88 10.254,63 1.129,75 12,38%
Week 7 (11/10/2019 - 15/11/2019) 19.965,75 20.570,81 605,06 3,03%

Stock Symbols #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss
Bureau Veritas BVI 97 9.966,63 10.732,95 766,32 7,69%
IOI IOIPG - 9.124,88 10.254,63 1.129,75 12,38%
Week 8 (18/10/2019 - 22/11/2019) 19.965,75 20.987,58 1.021,83 5,12%

Stock Symbols #Shares Initial Cost (RM) Current Value (RM) Gain/Loss (RM) % Gain/Loss
Bureau Veritas BVI - 9.966,63 10.647,81 681,17 6,83%
IOI IOIPG - 9.124,88 9.993,92 869,04 9,52%
Week 9 (25/10/2019 - 29/11/2019) 19.965,75 20.641,72 675,97 3,39%

Week 1 - Week 9 19.965,75 20.641,72 675,97 3,39%

Current Events and Analysis

Reflection 1

The first reflection will be based on below articles:

https://simplywall.st/stocks/fr/commercial-services/epa-bvi/bureau-veritas-shares

Bureau Veritas is a very interest stock to keep watch in this year, especially after this
report has already implied its intrinsic value using the free cash flow method, the stock price
has never gone down as or bounce back as it should be. Silvia Amaro in 2019 has shown that
the France might be a better choice and better economy outlook than Germany is. It indicates
it is already attractive market for the investors to make another choice while the capital run
of stock market has speed up the search for its next target (Silvia, 2019).

Another interesting fact is the China trade war which has caused capital flight from
other places to Europe and US, the struggle between US and China has led the equities from
many strong economy countries like Korea, Taiwan and Japan looking for lower and defensive
assets, such as bond and low positive yield stocks (Laure, 2019).

The article has shown that the intrinsic value of 18.83 euro while it is priced at 24 now,
more than 27% than the fair price the report shown. The push up is mainly due to the global
market trend of searching safer investment in Europe while the recessions and facing
upcoming finance crisis. The gloomy future has been painted and the crisis might happen even
severe than what happened in 2008 (Philip, 2019).

Despite its high debt ratio and price to earnings ratio, the dividend is still moderate
compare to market and industry, which makes it very lucrative for the investors to look
beyond its future organic growth. The overall successful merge and acquisition into South
East Asia countries not only makes it more profitable in future, but also attract South East
Asia’ investors eye on such bold and massive moves of such strong and promising company.

Overall Bureau Veritas has a very strong outlook in term of organic growth and
expansion. Their overvalued in intrinsic value is also reflected in their price. The good
management and decisions would be the foundation of such valuable stocks and now it is
very volatile on such high price, we would suggest holding the stocks if you earned it on earlier
days and try to sell it if found a more attracting investments.

Reflection 2

The second reflection will be based on below articles:

https://www.globenewswire.com/news-release/2019/02/28/1743938/0/en/Strong-2018-results-
with-7-0-revenue-growth-at-constant-currency-of-which-4-0-organic-growth-and-free-cash-flow-up-
45-8-year-on-year-at-constant-currency.html

The technology strategic alliance announcement with Microsoft is helping in boosting

the price from 19.83-euro dollars to 21.82-euro dollars just in 2 days from 27 February 2019
(Globalwire, 2019). Such announcement has not only boost investors' confidence but also in
long term help the company itself to leap to another level of competition.

Another interesting fact is that such price hike is not only last for short term but
already continuously maintained until the new high price 24-euro dollars in recent November
latest price.

It has not been first time Microsoft technology helps in productivity; Microsoft Azure
helps in Bureau Veritas in the AI technology to boost the company capabilities. The
importance of strategic alliance is highlighted in the article shown in 2009 (Isoraite, 2009).

Bureau Veritas has very impactful growth using their debt financing to merge and
acquisition other relevant companies in their field, such expansion help them to capture the
market share fast and precisely in recent years. Microsoft has such technology advancement
while compete in Google and the tactical difference is with strategic alliance with Nokia
(Zamir, 2014).

In long term, such organic growth in Bureau Veritas will boost in their cost efficiency,
thus providing additional profits by having such competitive advantages, their size in
expansion is very convincing not only in the developed countries but in developing countries,
their strategic alliance with Assure Quality in Singapore assured their hub and spoke position
in South East Asia has greatly increase their influence over the area. The 9 laboratories with
such operation have ensure they have captured the market effectively.

Furthermore, the merge and acquisition has not been stopping their pace yet, their
target to merge and acquisition more companies have not only surprised the local players
itself but also making impact to the relative fields of laboratory testing and certifications.

Reflection 3

The third reflection will be based on below articles:

https://www.marketscreener.com/BUREAU-VERITAS-SA-64670/news/BUREAU-VERITAS-Strong-
momentum-in-the-First-Half-2019-outlook-confirmed-28955286/

The strong momentum of growth has given three green lights for Bureau Veritas as
bullish market. In short term, this report still exposes the lack in confident for investors, the
share price of Bureau Veritas has some fallback short awhile after the first half year report
came out of the company, causing a domino-effect for the short-term price fall.

It is shown that the investors will be over-optimistic over the high beta stock and tend
to be bullish over positive sentiment market and be rational when the market is pessimistic
(Antoniou, 2015). The rational part of the investors are shown at this period as they found
the half year financial position of the report shows the real strength of the company, thus
giving up their position on the stock which has already at high price, 23.45-euro dollars when
the half year financial report was released.

It was immediately followed by a price fall to a bottom point around 20.3-euro dollars
on 15th August, such value drop is mainly caused by the dividend effect, especially ex-dividend
dates the investors will all drive off that stock (Thompson, 2019). The downturn may have
continued for a longer period, which might be due to the loss of the patience of investors, or
it was just a short capital flight for some speculators who had been observing the stock over-
valued period and estimate such contingent bullish market to fall for such awhile.

Such arbitrage has proved that the Bureau Veritas pay attractive dividend, but their
intrinsic value is not there. While having foundation of good financial position, we could see
that the investors are still rational and under control to review this stock. The overall growth
of the company is still seen, and the value does not drop too much out of 20% of the ex-
dividend date price.

Overall, the health check on the mid-year for Bureau Veritas is still amazing, which
implied the following uptrend in their stock price. The company has very good estimation on
their strategy and is capable to diversify their businesses to those which is profitable. They
are also very quick in slashing the non-performing division, as shown in this report. We could
still see their long-term management performing in such highly leveraged stock and to retain
its position in the field. For contingency theories believer, it might be a good chance to
estimate their top point for plan for the short if the company continue to be bullish to another
year to come.
Company Background

The first articles for the company background:

https://group.bureauveritas.com/group/core-business

Bureau Veritas (BV) is a world class testing, inspection and certification company which
provide wide range of services in the areas of quality, environmental protection, health and safety,
efficiency, and social responsibility. BV has a mission to reduce their client’s risk and improve client’s
performance through innovation. Within the globalization of the world economy, BV has always
assisted their clients throughout the world to comply with existing regulations. Then, as an
independent party BV has contributed to build trust on government, company, and people.

BV offers three types of main services: first, laboratory and on-site testing analysis which is
designed to determine the characteristics of products or materials, this testing is to ensure that the
products are comply with relevant regulations and the product’s required properties are according to
health and safety standard. Second, Inspection and onsite verification in which to verify products,
assets to meet specified criteria. Inspection cover wide range of services design to reduce risk, control
quality, verify quantity and meet regulatory requirement. Third, Certification is to provide a guarantee
from an independent party which certify the products, services or management system meets specific
standards.

BV groups services covering assets such as: ships, trains, aeroplanes, buildings, infrastructure,
power plants, refineries, and other industrial installations. Then, BV services also covering products
such as: consumer electronics, textiles, toys, automotive and food products, machineries, electrical
equipment, and other commodities like oil, petrochemical, minerals, metals, etc. This also include
systems such as: QHSE management system (ISO 9001, ISO 14001, OHSAS 18001, etc), management
system on specific sectors, and supply chain management. In term of business portfolio, BV has a
market focus on 6 business line, which is marine & offshore, agri-food and commodities, industry,
building & infrastructure, certification, and consumer products.

BV established in 1828, and in the past 190 years ago BV has contributed in innovation and
still innovating since then. BV was founded in a simple goal from the founder which is to make shipping
industry safer for anybody by creating new methodology for assessing risk for ships and equipment.
The in early 1900’s, BV has applied a new methodology in technical controls of automotive industry
make BV as the pioneer on that industry. Further in 1990’s, BV has introduced an initiative to improve
traceability and evaluating management systems in supply chain management market. Eventually, in
2007 BV has their first IPO (Initial Publics Offering) which gave an opportunity for wide range of
investors in contributing and sharing their efforts for BV groups success.

The second articles for the company background:

https://group.bureauveritas.com/sites/g/files/zypfnx196/files/media/document/2018_Registration_
Document.pdf

In term of size of the BV groups, in 2018 BV group’s revenue has achieved 4.8 Billion Euro.
Then, BV has been dealing with more than 400,000 clients all over the world. And BV running their
business empire with more than 75,000 employees throughout the globe. Further, BV operates in 140
countries with more than 1,500 offices and laboratories around the world. BV main presence is in the
Europe and Asia Pacific with presence rate of 35% and 31% respectively. In terms of global revenue,
BV’s main revenue is from building & infrastructure, and agri-food & commodities sectors which is
covering 27% and 22% from their total revenue respectively.

BV has 5 strategic pillars for expanding their global business which is : further deploy an
efficient operating model, expand market coverage, balance global footprints, became the main
choice of large corporations, and continue to play role in TIC (Testing, Inspection, and Certification)
market consolidation. BV has 2020 ambitious goals that targeting additional revenue of 1,5 Billion
Euro compare to 2015 revenue, reaching 5%-7% of their organic growth, achieving above 17%
adjusted operating margin. In term of leadership, BV has been assisted by an international team men
and women with broad-based skills and diverse backgrounds. BV lead by 12 directors, 67% of them
are independent and consist of 42% of women.

As a major player on TIC industry in the world, BV has several key competitive advantages,
which is an efficient international network from 140 countries around the world, then BV has a strong
brand image of long-standing reputation of technical expertise and integrity. Further, their technical
expertise is recognized by the authorities and accreditation bodies. BV core values of integrity, ethics,
impartiality, independence is a central value proposition to their customers. Eventually, an ability for
generating a profitable and cash-generating growth model. BV has focussing on targeting 2 key market
in the world, which is USA and China, it was contributing 11% and 16% from their total revenues
respectively.
 In the era of world’s digitalization. BV has integrated their digital transformation plan into
2020 global initiatives which is focussing on three business priorities: digital efficiency which will boost
profitability of existing TIC services, new digital operating models, and new TIC digital services which
will diversify into new market business. Beside this program, BV has also put an effort in incubating
innovating program in technology such as: AI (artificial intelligent) for laboratories, blockchain for
traceability and trust in online trading, and VR (virtual reality) technology in their inspection services.

Eventually, for achieving their ambitious target in 2020, BV has selected to an active and
selective external growth market by acquisition. Over the last ten years, BV groups has made 85
acquisitions representing accumulative revenue of 1.3 Billion Euro. Acquisitions enabling BV groups to
expand their business portfolio around the globe which may increase their presence in other region
that consist of high competition and gain a foothold in new region to broaden BV’s scope of expertise.
Final Analysis of Stock Portfolio

The initial investment was RM 20,000 for investing in 2 stock portfolios. Initially, we decided
to invest the investment funds to Bureau Veritas (BVI) stocks and Vizione (VIZ) stocks with amounts of
RM 19,965.75 for 97 BVI shares and 10,928 VIZ shares. And the remaining balance of RM 34.25 we
keep in saving account.

We select on BVI stocks is because our confident on BV’s fundamental background of the BV’s
group. Based on the last Q3 reports in 2019 (Veritas, 2019b) and the press release on 24th October
2019 (Veritas, 2019a), BV’s groups has shown a tremendous fundamental growth for the past few
years. BV booked for 1.271 Billion Euro revenue in Q3 2019 which is 6.2% year-on-year growth, and
3.9% of their organic growth. The highest growth is in marine & offshore, and agri-food & commodities
which represent 6.5% and 4.4% growth respectively. Then, at the end of September 2019, the BV’s
group adjusted net financial debt has a slightly decreased compare to the level of debt in June 2019.

Further, acquisition in 2019 has generated an additional revenue of 46 Million Euro. In

Conclusion, from 2019 report BV (Veritas, 2019b) has shown a transformed growth, resilience profile,
and sustainable solid growth in last quarter of 2019. Therefore, we decide to buy BV stock on 1st
October 2019 and keep holding the stock until the end of stock tracking period in 29th November 2019.
We manage to book a profit gain of 9.52 % for BVI stock.

The second stock that we choose is Vizione (VIZ) stock which is a construction company based
in Malaysia. At first, we are so confident regarding VIZ stock. An article released in July 2019
(klse.i3investor.com, n.d.-b) has shown quite promising initiatives from the Vizione management,
which was released a Memorandum of Collaboration with EPSB (Engineering Protocol SB) that will
boost market confident on Vizione stock. The groups MD said that if the bid is successful, both
companies will have a chance to develop and build solar photovoltaic plant for up to 60 MW, it is one
of the vision targets to expand their business into renewable energy.

Further, the other news released on August 2019 (Klse.i3investor.com, n.d.) which mention
the intention for Vizione to raise up capital up to RM 59.1 Million from private placement also seems
boosting market confident. The management will sell almost 10% of their total shares to third party.
This fund will partly finance existing project as well as contract deposit and performance bond of the
new project. However, Until the end of October 2019, the stock value keeps going down into the
lowest level of the month for RM 0,835 per share. At that period, we already book a loss for 8.74%
from our initial investment, Therefore, we decided to sell our shares and buy another stock that we
are confident to have better performance compare to Vizione stock. Thus, we choose for investing our
money to IOI properties groups berhad which also listed in KLSE (Kuala Lumpur Stock Exchange).

IOI properties berhad still recognized as one of the efficient developers in Malaysia that is able
to still conserve their gross margins above 40% rate (klse.i3investor.com, n.d.-a). In the middle of
uncertainty of property business, we still have a confident in IOI stock performance. We believe that
the recent weakness in IOIPG’s stock price in the last 6 months for almost -28% has already priced in
the negative news. Hence, we decided to buy IOI stock on 4th November 2019, and keep the stock until
the end of stock tracking period of 29th November 2019. However, we still manage to gain a profit of
9.52% until the end of stock tracking period.

In conclusion, for both stock portfolio BVI and IOIPG stock, during the 9 weeks stock tracking.
Our roti canai portfolio has managed to get a profit gain of RM 675.97 which constitute 3.39% of our
investment profit gain.
References

Antoniou, C. (2015). Investor Sentiment, Beta, and the Cost of Equity Capital.

Globalwire. (2019). Bureau Veritas and Microsoft announce a worldwide partnership to launch
testing services based on artificial intelligence. Retrieved from
https://www.globenewswire.com/news-release/2019/02/27/1743628/0/en/BUREAU-VERITAS-
and-Microsoft-announce-a-worldwide-partnership-to-launch-testing-services-based-on-
artificial-intelligence.html

Isoraite, M. (2009). Imprtance of Strategic Alliances in Company’s Activity. Retrieved from

http://www3.mruni.eu/~int.economics/5nr/Isoraite.pdf.

klse.i3investor.com. (n.d.-a). IOI Properties Group Berhad - Anticipates Flattish Sales Growth in FY20.
Retrieved from https://klse.i3investor.com/blogs/taresearch/227537.jsp

klse.i3investor.com. (n.d.-b). Vizione: Inks partnership to bid for Large Scale Solar Photovoltaic
Plants. Retrieved from https://klse.i3investor.com/blogs/PublicInvest/216698.jsp

Klse.i3investor.com. (n.d.). Vizione Holdings Bhd. Retrieved from

https://klse.i3investor.com/blogs/MplusOnline/220125.jsp

Laure, H. (2019). Where has all the money gone? US-China trade war triggers capital flight from
emerging Asian markets. Retrieved from https://www.scmp.com/business/china-
business/article/3010562/where-has-all-money-gone-after-trade-war-triggers-capital

Philip, I. (2019). Pessimists are predicting a global crash in 2020. You can see why. Retrieved from
https://www.theguardian.com/business/2019/jan/05/global-economic-crash-2020-
understand-why

Silvia, A. (2019). France a ‘better option’ than Germany as trade war uncertainty hits Europe.
Retrieved from https://www.cnbc.com/2019/09/27/us-china-trade-war-changes-the-outlook-
for-france-and-germany.html

Thompson, A. (2019). Ex-dividend dates and their impact on stock prices explained. Retrieved from
https://www.sharesight.com/blog/ex-dividend-dates-and-their-impact-on-stock-prices-
explained/

Veritas, B. (2019a). Press Release. p. 3.

Veritas, B. (2019b). Q3 2019 Revenue.

Zamir, Z. (2014). Strategic Alliances; A Comparative Analysis of Successful. Retrieved from

https://pdfs.semanticscholar.org/1c72/73d5be2dc4573f44ea8327ddeed1a5471aaa.pdf