Based on the Q1 report as at 31/3/2015 issued by the management and the 2014 annual report lodged with Bursa yesterday, the company has registered an annualized profit growth of almost 5 times - 4.65x to be exact.

Assuming BDO were diligent in their audit work for FYE 31 Dec 2014, the company posted a net profit attributable to equity owners of RM36,103,000 against an average share pool of 1.709 billion units. The resulting earnings per share (EPS) and price to earnings (PE) ratios were at 2.11 sen per share and 3.31x respectively based on last year's results and yesterday's closing price.

For the first quarter this year, the company captured a greater growth in its peanut oil and peanut protein cake business. It registered a net profit attributable to equity owners of RM41,949,000 against a current share pool of 2.35 billion units with a quarterly EPS of 1.79 sen per share. In annual terms, the said quarter results would translate into a full year EPS of 7.14 sen per share (assuming it can repeat the results each quarter since the said peanut commodities are consumed throughout the year).

Now assuming the PE remains unchanged at 3.31x, then the shares ought to be retailing at 24 sen per share.

Based on the latest results, a fair price of the share ought to be between 24 sen and 95 sen per share. This is my opinion, of course.

Whether actual trade will reflect, exceed or underperform these TP levels depends on how far the investors have factored the results into the share price before trading them come Monday onwards.

                                                                                                                                             Ezra, 30 May 2015

P/S Before you decide review carefully the Q1 report and annual report yourself and speak to the auditors and directors and anyone you can grab hold of, and make your own call - whether you choose to buy, hold or sell. Always remember to invest wisely (using your own surplus money and do not contra) and do the math before spending a single cent on any stock of choice; whether it's apple, ifca or xinghe for that matter.