Fabulous Yee Lee is good to hold as long as you have spare money to invest. As Yee Lee recently gained a dealership with Red Bull and sure will have a slightly effect in the year account 2015. Don't so worry about Yee Lee counter.
But for CIHB, I have no idea at all. You may try to ask 688888 as highly recommended by him/her.
Fadhil, if u don't know how to check the shareholder list, i suggest you go to the beginner share investing class :) dont make your self look like a fool infront of everybody ....
Red bull business to be estimated at 200 million to 250 million. Additional profits about 20 million. Total earning EPS may hit 30 sens/year. PE of 8 should be 2.40. However with red bull contract of 5 years, should have higher PE of 10. Good time to accumulate now. Funds are buying in that is why limited downside despite the current pessimistic market.
Rm250 mil from redbull? At 3% gross it comes up to Rm7.5 mil. Impressive? After deducting from overhead, transport, toll and labour cost it might be a mere Rm1 mil or 2 mil. So what is the EPS?
My friend Mr. Wong, who was a fmcg agent gave up redbull after careful calculation.
“Based on our estimates Red Bull, which has a 70% share of the energy drink market, could be contributing more than RM200mil to F&N’s revenue (5% of total revenue), and more than 5% of F&N’s net profit as Red Bull commands good margins. comments by Cimb, taken from star 30th march 2015.That's NET profit and it's about 13 Million. Don't listen to hear say, do a little home work.
goodguess, I have heard just about the same profit projection figures from a reliable source. If we are correct, the stock shd easily fetch beyond rm3 per share (many stocks in the same industry trade around 16 times PE multiple)
chinchiahor, yes price at 3 is possible but need some time. Profits from Red bull must be registered in. That will take about 6 months as 1 August then distributor officially to Yeelee. But in anticipation of this price should move up to 2 to 2.20 in a couple of weeks. My estimation 2 weeks. Let's see.....
UOB Kay Hian Malaysia Research: The research house’s channel checks suggest that F&N’s Red Bull energy drinks’ sales have grown to RM250 million per annum with RM25 million-RM30 million pre-tax profit previously.
While it is too early to gauge the financial impact on Yee Lee Corp, this distributorship can hypothetically lift the company’s net profit to RM47 million, assuming a pre-tax profit of RM25 million from the Red Bull contract and 6% organic growth its existing business. “However, we note that the full impact from this contract can only be seen in 2017 as Yee Lee Corp might incur infrastructure costs during the initial stages,” observed UOB Kay Hian Research.
According to the research house, Yee Lee Corp is currently trading at 8.3x forward PE (price-to-earnings ratio), assuming a RM47 million forward net profit. The current share price provides 21%-46% upside, assuming a PE multiple of 10-12x.
MoneyInTheAir, all the numbers from annual report, analyst estimation or etc are sell-in sales in FMCG. The real sales is sell-out which is sales to end users who consume the products. I lazy to explain the details
Worth to have a closed eye on this counter. Red bull contributed about 200mil revenue to f&nn last time. Taking profit margin of 7.5%, it will increase yeelee's earning by 8.2 cents. Current earning 12.6cents + 8.2cents=20.8cents. Taking PE ratio of 15, it should worth around rm3.00. To be more conservative, it should worth at least rm2.50.
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Posted by Star Tracker > 2015-05-12 16:39 | Report Abuse
Fabulous Yee Lee is good to hold as long as you have spare money to invest. As Yee Lee recently gained a dealership with Red Bull and sure will have a slightly effect in the year account 2015. Don't so worry about Yee Lee counter.
But for CIHB, I have no idea at all. You may try to ask 688888 as highly recommended by him/her.