White Horse is currently trading below its Graham Net Net. The Graham Net Net is a short hand for its liquidation value. So why is the market so pessimistic? This is not a sunset sector and there is no digital disruption. White Horse Malaysian business has declined due to the soft property market. I expect the Group to return to profitability when the property market recovers. There is growing global demand and hence export potential. My estimate is that this will take another 2 to 3 years before we see any results.

The Group is financially strong and not burning cash giving it time to outlast the economic downturn.

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White Horse has had a terrible past few years. This is because its revenue is very tied to the Malaysian property sector which had been soft since the mid-2010s. It lost money because it was operating below its breakeven levels. The company took steps to cut cost as one way to get out of the breakeven trap. But it still needs increased sales volume to be profitable. The Malaysian property sector is probably at the bottom of the cycle and I expect it to uptrend soon. When this happens so will the performance of White Horse. If you are a long-term value investor, check this out. https://www.i4value.asia/2020/11/case-06-1-is-white-horse-value-trap.html#more