ha ..just hope management generous enough this round to reward the share holder , I did not see any expansion plan revealed recently (except the plan to increase production from 4 to 4.8m eggs/day ) , so , they should not need big Capex reserve ...
If we don't consider the subsidy from government , this QR result actually much better than the previous one , I use revenue minus the cost and the Q423 is roughly 11.2% margin , however , they achieve roughly 17% in this QR , believe mainly contributed by lower feed cost , if this can be sustained , next QR should be even better as they may receive higher subsidy in next q ..
If I added all the other income in Fy23 ( mainly subsidy from government ) , it was about 100m , which means each quarter should be around 25m , since this quarter only recorded 9m of subsidy from government , that means still have another 16m outstanding yet to be paid to company , that explains why in FY23 they received 54m in one single quarter ...
Teo Seng Capital Bhd's first quarter net profit rose 42.11% to RM34 million from RM19.68 million a year ago, on higher egg sales, improved raw material costs, and government subsidies that eased operational expenses.
the TS share price start dropping since LHI released the QR , may be a good QR from LHI can help to boost the confidence on this segment .. anyway , the government policy shall be another crucial factor , if government stop the subsidy after 1H24 and remove the ceiling price control , then could be a good news for company as the egg price expected to be up 10 sens per egg where the current subsidy is 8sens per egg , on top of that , price can be adjusted based on demand and feed cost , should be a good things for company ..
lubetrader twhen a good QR comes out and the stock doesnt jump, some ppl to move on. there is no one operating this counter as u can see from the volume and the way its traded and so its largely supported by retail.
i dont think the flow went to glove coz if u are invested here, u probably wouldnt buy gloves which are all financially bad now and just based on a distant tarriff in 2026. thats 1.5 years to go. anything can happen
Teo Seng plans to focus on integrated layer farming and poultry-related products for future growth. Hence, they acquired 104.87 acres of land for future layer farming expansion
Without the subsidy , the profit should be around 100m/year if the corn price remain low as expected , last year they receive 100m subsidy from government , that means the annual profit should be around 150 to 200m depends on subsidy policy which suppose to be expired in June 2024 .. hope management give more dividend /free shares later ..
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....
markgold
314 posts
Posted by markgold > 2 months ago | Report Abuse
Beginning of new uptrend !