Remarks on Silkkitie and Komodo Funds’ Q1/2019 Reports

Most of the Indonesian companies (25 out of 27 for Komodo and 6 out of 7 for Silkkitie) have now reported their Q1 results.

The portfolio weighted net incomes of the JOM Komodo companies grew by 103% YoY, whereas the median growth was at 32%.

Positive surprises dominated (e.g. ARNA, MTDL, WTON etc.), but there were a few negative negative ones as well (e.g. CSAP and TOTO). Also, the digital economy companies continued with strong growth figures.

The results of Indonesian companies in our Silkkitie fund’s portfolio grew on average by 36%, the median growth being 29%. The fund’s three Vietnamese companies managed to increase their profits on average by 27% (YoY). Silkkitie’s only Pakistani holding, Shifa International Hospital, increased its profit by 27%. Even though Shifa’s revenues have been on steady increase, the company’s profits have suffered from the hospital workers’ minimum wage increase imposed by the Pakistani government in 2017. Nevertheless, the situation seems to be improving now.

The Indian and Filipino companies will be reporting their results towards the end of May, whereas most Chinese companies report only at half year intervals.