Subject to good QR to be announced this month and if the result maintain the same or better figures as compared to last year, PE8 is the reasonable target for consistent operating results.
Will share my findings & comparison with same peers in due course explaining why CAB is currently undervalued and revaluation itself will make holders fruitful returns
The results for last 2 qtrs seems suppressed. Price control/subsidies in place since 01 July 2022 which covers last 3 quarters. Sales increased while costs of feeds reduced but quarterly results dropped?? If suppressed results are released in last quarter we will possibly see record numbers.
Personally estimated next quarter nett profit 25-30million, anything above it a surprise as meize (corn) and wheat price soften, while chicken wholesale price slightly elevated since July 23
"The government issued subsidies amounting to RM3.8 billion to cover the cost of chicken and eggs from February 2022 to last November, and 72.8% of the cost of chicken production was the cost of poultry feed.
"When there is a cartel that controls the price of chicken feed, it is difficult for the government to control the price of chicken at a set rate of RM9.40 per kilogramme. It is difficult for chicken rearers to get a cheaper price for poultry feed because these five companies are involved in 40% of chicken feed production,” she added.
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....
WealthWizard
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Posted by WealthWizard > 2023-11-14 22:08 | Report Abuse
Subject to good QR to be announced this month and if the result maintain the same or better figures as compared to last year, PE8 is the reasonable target for consistent operating results.