Businesses can either be price setters or price takers. In a fiercely competitive environment where there is perfect competition, businesses are mostly price takers.
"How much is this?"
"Aiyoh, internet selling $10.00 only."
"Oh... OK, $10.00."
If I were the shop owner and if this were to happen on a daily basis, I have something to worry about.
"How much is this?"
"Internet selling similar for $10.00 only."
"Then, you buy from internet lor."
"No, I like this. OK, $20.00"
How does a business get to be in such a sweet spot?
What? You have a patent?
Try telling the Chinese factories.
Well, they are not safe from copy cats either. Business models can be copied too.
I am sharing the stuff which I find more interesting here:
2. 1Q17 net profit margin improved to 33% compared to 32% a year ago. The improvements
to net profit margin was due to ASPRI-Westlite Papan becoming more profitable in 1Q17 but
slightly offset by higher Cost of Goods (“COGs”) and higher interest expense.
3. Centurion continues to enjoy a high operating leverage where they will be able to grow revenue faster than costs through positive rental reversions.
4. Singapore Workers’ Dormitory Portfolio have almost hit full occupancy by 1Q17, well ahead of our expectation of hitting full occupancy by end of 2017. We expect the supply constraints in workers’ accommodation to continue while the strong pipeline of public sector construction projects which are expected to last till 2020 will keep Centurion’s Singapore workers’ dormitories fully occupied.
5. We are pleased to see Centurion’s ability to command a price premium for its Singapore workers’ dormitories and yet ramp up its occupancy faster than expected. All these despite
competitors slashing prices and weaknesses from the oil and gas industry that we have
witnessed in 2016.
6. ... expectation for stronger operating cash flow as a result of Centurion’s continued ability to exercise pricing power in its student and worker accommodation business across markets ...
My investment portfolio.
Centurion Corporation Limited is a relatively substantial investment for me and if I were to update the list:
From $350,000 to $499,999:
AIMS AMP Cap Ind'l REIT
From $200,000 to $349,999:
ACCORDIA Golf Trust
CROESUS Retail Trust
From $100,000 to $199,999:
Centurion Corporation Limited
Added Centurion Corporation Limited to my investment portfolio.
1. Full year 2016 report.