Senior Investor Lo Kheng Hong Still Promotes Banking, Coal, And CPO Stocks To 'Play' In 2022

Lo Kheng Hong. (Photo: Doc. HR ITB)

JAKARTA - Senior investor Lo Kheng Hong is a candidate for conventional banking stocks, coal, and CPO for 2022. Mr. Lo, as he is familiarly called, said he is not interested in collecting digital banking stocks.

The man who is referred to as the Indonesian version of Warren Buffett assesses that many conventional bank stocks are attractive with a book value or PBV (price to book value) below 1 time and a PER (price earning ratio) below 10 times.

Lo Kheng Hong said that the stock conditions of conventional banks are not like digital banks with very expensive valuations, small assets, and maybe some have not recorded profits.

"I am not at all interested in digital and technology banks because the assets are small and the valuation is very expensive," said Mr. Lo in the 2022 Bisnis Indonesia Business Challenges, quoted on Tuesday, December 21.

Mr. Lo said that he likes banks with large assets, such as Bank Danamon, Bank CIMB, and Bank BNI, which currently have low-priced shares.

Although he himself is not interested in collecting digital bank shares, he said that one-day conventional banks will also become digital banks as well. According to him, the bank business itself is still a good business field that will grow every year.

In addition to shares in the conventional bank sector, Mr. Lo also champions commodity stocks such as coal and crude palm oil (CPO). He saw that many coal stocks currently have a low PE below 10 times. Meanwhile, CPO shares are considered not to have increased as much as the increase in commodity prices.

Mr. Lo is optimistic that 2022 will be better than 2021, although he reminds that the best year is 2020. He reminds that a good investment is to invest in bad time and sell in good time.

"Because if we invest in bad time, last year the JCI was at 3,900, of course our profits now have multiplied. But of course, we all hope that 2022 will be a better year," concluded Lo Kheng Hong.