Hi, thats good sharing, something that you may look into.
Egg section is just contributing 25% of Layhong's revenue. Few more factor that may play around rather than just looking at price of egg. Soybean and corn price may take huge impact too. Eggs come from chicken, and chicken come from Soybean and corn! Take not there will be some lagging for material price, as company will stock up these material 3 to 6 months normally. On top of that, currency is impacting the profit too, as layhong use USD in material purchasing.
So, instead of looking at just egg price. There are more too look at. Thats not so straight forward.
One thing to discover, what make the share price drop so much CONTINUOUSLY for 2 months. Everything come with reason. There are something that we do not know behind this huge & quick drop in share price.
My question is last quarter shld be high egg consume since more cakes & cookies being baked...& Since the price of chicken food increase..what'rationale to drop the egg price? Egg control price is 2-4 weeks during puasa...is this the caused? Then govt the culprit?
If you observe the egg price trend for the past few years, they have always came down during the Ramadan month. Reason is simple: less meals per day equals less demand for eggs. Eggs spoil in 2-3 weeks. So egg farmers will be scrambling to clear their stock. The oversupply will the cause egg prices to collapse.
Posted by smalltimer > Sep 1, 2018 08:28 AM | Report Abuse
My question is last quarter shld be high egg consume since more cakes & cookies being baked...& Since the price of chicken food increase..what'rationale to drop the egg price? Egg control price is 2-4 weeks during puasa...is this the caused? Then govt the culprit?
What about more cookies & cakes being baked? Since been in egg business for many years & if trend in ramadan is always throw price, why not reduce production hence reduce cost...sell as meat during ramadan la
A laying hen will continue to lay 5-7 eggs per week regardless of season. To reduce production would mean culling the hen. Most of the time, it is not worth culling them unless the egg prices fall too low for long periods of time. But once industry-wide volume is reduced, big players will benefit from the price rebound while small players need 6-8 weeks to re-grow new hens to catch up. Industrialized layer farms generally have stronger financials compared to mini farmers to sit through the low cycle.
Posted by smalltimer > Sep 1, 2018 08:42 AM | Report Abuse
What about more cookies & cakes being baked? Since been in egg business for many years & if trend in ramadan is always throw price, why not reduce production hence reduce cost...sell as meat during ramadan la
Talk is cheap. If you think you can beat the great wizard in i3, then just sell your shares if have any.
When the wizard posted his article related to hrc and crc. You still don't know what's the difference between them. I advise you, keep serious in what the writer has mentioned above and go to do some homework.
Everyone keep thinking investors had overreacted by selling down. When in actual facts it is the reverse, they had overreacted by buying up. The stock has been overvalued for quite some time.
Everyone keep thinking investors had overreacted by selling down. When in actual facts it is the reverse, they had overreacted by buying up. The stock has been overvalued for quite some time. Now it just normalized. The same goes for most poultry stock, the worst being QL.
one of the best articles series so far in this year
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Posted by VenFx > 2018-08-31 17:16 | Report Abuse
Hope author may scan sensitivity for their feed grain cost impact too. Tq