Posted by L. C. Chong on March 28, 2014
KMLOONG Analysis:-
Excel – http://1drv.ms/O2EacY
My View:-
- Fair values:
– 5-Y DCF – 3.47 – 3.87
– Buy under: 2.84 – 3.16 (MOS: 21% – 29%)
– EY% – Buy below 2.47, sell above 3.31
– In my opinion, 3.4 – 3.8 is fair value range for KMLOONG. KMLOONG is currently undervalued.
- The CPO price moves in a cyclical manner. In a worst case scenario, KMLOONG, a net cash company with a low cost of production and an experienced management team would be able to withstand the turbulence and even take up expansion opportunities.
- Going forward, I expect KMLOONG to perform better in FY15 as it plans to improve production, while benefiting from favourable palm oil prices.
- Recently, I have purchased KMLOONG at 2.8, and then 2.74.
Latest Financial – Q4 2014 Financial Report (27 Mar 2013) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1577605
At the time of writing, I owned shares of KMLOONG.
http://lcchong.wordpress.com/2014/03/28/kmloongfundamental-analysis-28-mar-2014/
Chart | Stock Name | Last | Change | Volume |
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Created by Tan KW | Nov 04, 2024
Created by Tan KW | Nov 04, 2024
Created by Tan KW | Nov 04, 2024
kcchongnz
If I were to pick a plantation stock, I probably will pick this Kimloong Resources, a low risk investment. Why low risk?
Steady revenue and profit, healthy balance sheet, and yes, good cash flows, and most of all selling cheap. That is what i mean by low risk investment.
Am I looking at RM1.00 return? Not at all. If RM1.00 profit comes, I would be very happy. But at least the downside is limited.
2014-03-31 13:03