M+ Online Research Articles

Author: MalaccaSecurities   |   Latest post: Fri, 6 Dec 2019, 8:54 AM


Teo Seng Capital Bhd - Climbed Another Level

Author:   |    Publish date:

Results Highlights

  • Teo Seng’s 3Q2019 net profit surged 157.2% Y.o.Y to RM18.0 mln, lifted by higher production and sale of chicken eggs, higher average selling prices (ASP) of chicken eggs and improved demand for animal health products. Revenue for the quarter gained 10.5% Y.o.Y to RM138.4 mln.
  • For 9M2019, cumulative net profit soared 245.2% Y.o.Y to RM45.2 mln. Revenue for the period added 19.6% Y.o.Y to RM410.1 mln. The reported results already make up to 96.9% of our previous net profit estimate of RM46.6 mln. The reported revenue, however, came in slightly below our expectations, amounting to 73.3% of our fullyear forecast of RM559.8 mln. The variance in the bottom line is mainly due to the stronger-than-expected recovery in average selling prices of chicken eggs.
  • Segment wise in 3Q2019, the poultry farming segment’s pretax profit stood soared 217.0% Y.o.Y to RM21.1 mln, boosted by improved chicken egg ASPs and higher sales quantity. The trading segment’s pretax profit grew 27.3% Y.o.Y to RM2.5 mln on improved demand for animal healthcare products.
  • As of 3Q2019, Teo Seng’s gearing is reduced to 54.7% (from 58.0% recorded in 2Q2019). Moving forward, we expect Teo Seng’s gearing level to remain above the 50.0% level as the group continues to hinge on external funding for its long-term expansion plans, targeting production of 5.0 mln eggs per day by end-2022. An interim dividend of 2.0 sen was declared.

Source: Mplus Research - 21 Nov 2019

Share this

Related Stocks

Chart Stock Name Last Change Volume 
TEOSENG 1.36 0.00 (0.00%) 1,095,500 

  Be the first to like this.


436  284  495 

Top 10 Active Counters
 HSI-C7K 0.275+0.01 
 KHEESAN 0.485+0.005 
 IMPIANA 0.0250.00 
 ARMADA 0.475-0.02 
 HSI-H8F 0.25-0.015 
 TDM 0.275+0.03 
 FINTEC 0.0550.00 
 KNM 0.360.00 
 KNM-WB 0.075-0.01 
 MTRONIC-WA 0.010.00 


1. Leveraged & Inverse ETF CMS
Partners & Brokers