I would HOLD or BUY reasons? 1. Q1 17 revenue is high. Compared to previous years, even the glorious 2015, this revenue beats them all except some of their Q4 revenue. Notice Q4 revenue is usually the highest every year. 2. Q1 17 net profit looks good since we know Q1 17 was a very harsh environment for HUP SENG. CPO itself was RM3k + during Jan/Feb 17. Good news CPO for Q2 is down to +/- RM2.5k~2.7k. Based on recent news, don't think it can ever exceed much more than RM2.8k. 3. Comparing competitors, 1st compare to the exactly same industry (sorry to say) HuXXai is not comparable… Next similar industry ApXXXo Q1 17 revenue and profit both declined compared Q1 16 4. Price wise, since the Q1 17 net profit is slightly higher than Q3 15 and both same EPS, last time after Q3 15 announcement (Nov 15 – Feb 16) share price was about 1.25~1.4 hmmmm…
the management is well done :) will look forward Q2, 3, 4 results.
I would see AmInvest TP RM1.10 based on PE17.8x is unfair and unreasonable Unfair: there is no biscuit industry with such low PE, HUPSENG PE is already low among the peers Unreasonable: the research is not comprehensive enough, lack of figures, peer comparisons…
HUPSENG with currently already low PE in this industry (anyone can compare with its peer companies), yet with high ROE (I would say the top) in the industry, long term high dividend yield are still factors we can’t resist.
Just to share a simple analogy, there are various transportation out there. Some people take train, some take ship, some drive car, some motorbike, some ride bicycle, some walk etc each with different speed, cost, for various distance need.
- jet is fast, not many can afford. - can motorbike race with jet? - Walking is slow? When we go from living room to toilet hey walking is fastest. (and cheapest) - some even take risk to ride rocket! your choice. - Driving car? Gosh petrol up, tolls multiply less people drive. Lower speed trap limit, traffic jam, heavy rain drivers have to slow down. People quit drive? people still drive. When petrol down more people driving again. - want your car faster? Got to upgrade engine, also make it less consumption. - Among cars, there are sport cars, household cars etc. If you own a sport car which runs 120km/h consistent performance under heavy rain, someone tag it $220k (lower than market) and claim “fair”, another tag it $278k (higher than market). Out there other sport car which run 450km/h selling at $1000k and a household car which run 0-10km/h breakdown regularly selling at $100k. Want to accept this 220k “fair” tag and price your car at that price? Tag is tag car owners know the price :)
Already overvalue if u want to invest in this apek tua company get it at RM0.60 which give more than 50%MOS...
HUPSENG have 2factor effecting its margin (1) PRICE OF CPO(crude palm oil) (2)flactuation of RMvsUSD...both of this factor if you look is favourable for 2years but the price flactuate between RM1.15-1.30 which is unimpressive for so called wonderful F&B company while others like OLDTOWN,F&N,DUTCHLADY,Nestle & OFI already in sky rite now puts some above its value while DLADY& Nestle still far from its future value...
Then again..always->
Remember a wonderful company is not that wonderful if you buy above its value...
Btw biskut HUPSENG sekrg bluekkk mmg xsedap,biskot oat y baru ni berminyak,please lah tgok dulu mcm mn biskut oat y dibuat oleh Quaker...please improve the recipe..
glad to hear from you necro, and the sharing HUPSENG overall still strong, as what I see memang penat gila i promoting counter ni, tak nak panjang lebar now on let individu decide
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
cyeec2000
994 posts
Posted by cyeec2000 > 2017-05-15 20:26 | Report Abuse
Normally dividends would be announced on 2nd and 4th quarter