Sai Men has been investing in stocks in the oil and gas sector.
AT 27, Chua Sai Men looks like any well groomed young man in the corporate world.
With his steel rimmed glasses and boyish looks, Sai Men can be excused as an unassuming face in the business fraternity.
But he is not. It’s the family ties that distinguishes Sai Men from the rest as he is the eldest son of tycoon Tan Sri Chua Ma Yu.
Sai Men is today learning the ropes in the corporate world from his father, a legendary name among those in the stock market and corporate circles.
And he has publicly surfaced for the first time once his shareholding in Cypark Resources Bhd crossed the 5% threshold.
Though owning just 5.1% equity in smallish Cypark Resources Bhd, Sai Men has been dabbling in the market.
Besides Cypark, Sai Men has been investing in stocks in the oil and gas sector, though never a substantial shareholder, and will continue to keep a close tab on that sector.
Ma Yu is a veteran of the stock market.
Companies in the oil and gas sector often have contracts with Petronas and that form of backing and with the sector set to benefit from more contracts, the sector is at a robust stage.
How that will unfold will depend on execution.
That aside, Chua is a seasoned market player from the 1970s besides being involved in property development.
Sai Men is the older of two boys. Ma Yu has two daughters, Carmen and Carmey, who are involved in the property sector through CMY Capital Sdn Bhd which is developing the St Regis at KL Sentral.
Touted as the first six-star hotel in Kuala Lumpur - which involves a RM1.2bil investment - it will offer 208 hotel rooms and 160 serviced apartments. The building will be managed by six-star luxury hospitality brand St Regis.
Sai Men graduated from Cornell University with a bachelors degree in operational research and a Masters in financial engineering. He came back from the United States in 2009. Soon after his return, he left to Bejing to attend a three month Mandarin course and returned in 2010. He has since been with CMY, learning the ropes of mastering corporate dealings.
“My father wanted me to come home and take over eventually. This is the grooming process,’’ Sai Men adds.
Why Cypark?
Ma Yu, a veteran of the stock market, continues to do deals and make trades. While doing just that, he is keeping one eye out for Sai Men as he grooms his son for the business.
Sai Men saw enough of Cypark, an integrated green engineering and renewable energy solutions company, to up his stake in the company.
“This is my first foray as substantial shareholder of a public listed company and I intend to be a long term investor in Cypark,’’ Sai Men says in an interview.
His long term vision is to stay as investor over the next three to five years, or longer.
But a lot will depend on market conditions, company’s outlook and performance.
Though he remains bullish about the solar energy business and Cypark being the pioneer in the solar energy business as its strengths, the longer term outlook will be underpinned by more renewable energy capacity coming onstream and the quotas the government will set on the sector.
“What really interests me about Cypark is the solar business they are into and how they are using their landfills to set up solar farms. It is making use of the landfills that virtually cannot be reused for anything else. Solar is still new in the country but globally it holds huge potential,’’ he says.
As at end last year Cypark’s renewable energy (RE) capacity stood at 30.5MW, of this 29MW of capacity was in solar power generation and the balance 1.5MW in biogas generation. Cypark is currently building another 10MW of solar capacity.
Asked if he was going to raise his stake further, Sai Men said “we will never say no.’’
But he wont’s elaborate.
“We have been buying for sometime now and held about 2.68% until it was increased over the past months to 5.1%,’’ Sai Men says.
Cypark told Bursa Malaysia on April 23 that Sai Men was a substantial shareholder in the company.
Sai Men declined to say how much he paid for his shares in Cypark, but it is in the ballpark of about RM25mil and funded by CMY Capital.
CMY Capital is Chua’s vehicle for investments into stocks both here and abroad. Of late CMY has emerged as cornerstone investor in several initial public offerings including IHH Healthcare Bhd and Astro Malaysia Holdings Bhd.
by b.k. sidhu
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