The second reason is because the pricing power

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consume of their food products regardless of a recession. The second reason is because the pricing power. Consumer industry is able to consistently increase its revenue due to their ability to increase prices by passing down rising costs to customers. They are able to do this because of their strong brand equity among consumers. Even if they are priced slightly higher, consumers still choose based on their brand. Last but not least, the third reason why we choose consumer industry is because of a good dividends. For Ajinomoto has a strong history of paying out of dividend. It has been paying out a growing and consistent dividend since 2001. Meanwhile Dutch Lady has paid consistent dividends due to the highFree Cash Flow (FCF) they generate . Except for a one-off in 2008, dividends per share has been on an increasing trend.
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INDUSTRY : PROPERTY The company we had chosen is Hunza Properties Berhad, KLCC Property Holdings Berhad and IOI Properties Group Berhad (IOIPG) . Hunza Properties Berhad operates in property development, investment, construction and leasing. KLCC Property Holdings Berhad one of the largest integrated real estate developments in the world. Other than that, IOI Properties Group Berhad (IOIPG) is renowned as one of the largest property companies in the country with a proven track record spanning more than three decades in the property development industry. The main reason why we choose property industry is because real estate investments is an answer to this stability as real estate can be a potential hedge against inflation as historically, rental rates and home prices rise with inflation. Real estate investment can provide significant cash flows of between 4% to 9% yield which is more tempting than the cash flow of equities. Real estate investment offers less liquidity as compared to equities. Real estate investments generally require a long holding period. INDUSTRY : PLANTATIONS
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Palm oil is one of the largest commodities in Malaysia. The reasons why we should buy this stock because KLK is despite decline in revenue and profit most of palm oil companies continue to receive positive cash flow from operation. With positive operating cash flow, plantation companies able to finance acquisition of new plantation estate. So this would enhance to bust profit margin. In 2015, Malaysia export 16.8 million MT of palm oil worth RM38.64 billion making in the 2 nd largest income contributor. Like most commodities, palm oil price also in cycle. There a several reasons why commodity price is cyclical in nature. The price of any product depends largely on the theory of supply and demand which also depends on other economic factors such as economic expansion, recession, interest rate and other factors, all of which are also cyclical in nature.
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