Posted by NOBY > 2015-03-13 08:32 | Report Abuse

Superb write up with many qualitative angles covered. Well done. This company management is quite conservative in my opinion. I believe that PE ratio may not be tht appropriate to use as comparison with other poultry players due difference in debt and cash holding. Using EV/EBIT looks more appropriate and LTKM is still undervalued with EV/EBIT of less than 5x.

Posted by Steve Ong Wei Siang > 2015-03-13 09:25 | Report Abuse

Good point, will definitely look into it. Should it be EV/EBITDA instead of EBIT? EV/EBITDA is normally used for take-over stand-point, LTKM is a take-over target because key shareholder have 65% shareholding. EBITDA is fluctuating in the past (thought my projection is more stable moving forward). Anyway, just some early thought, will look into the details.

Posted by duncan2 > 2015-03-13 20:06 | Report Abuse

how is it compare teoseng? i m holding both of them but due to high price of ltkm i sold out. now accumulating teoseng...

Posted by Steve Ong Wei Siang > 2015-03-14 16:12 | Report Abuse

Teoseng is expanding its daily production capacity from 3.1m eggs to 5.1m eggs in 5 years time (+2mil egg, 500k p.a.). It's growing but LTKM is not growing but a value stock. You can refer to AmResearch's report for more details. LTKM is not expensive yet given the market's interest in poultry stock recently. I still see upside potential. However, there are liquidity risk, as LTKM's stock average daily trading volume is low, any adverse change in market sentiment may see its share price drop sharply when panic seller want to sell their holding while buyers holding back their investment.

Posted by goldenluck16 > 2015-03-14 16:21 | Report Abuse

Put your money in Teoseng. It's the best layer farm producer in terms of revenue and roe.