We should see one off 26mil gain (sold Singapore asset ) as well .. If government paid all the subsidy on time , teh next QR profit may be is another record high again with all these income ...
The Disposal Consideration is expected to be used by Teo Seng and/or its subsidiaries (“Teo Seng Group”) for repayment of bank borrowings and/or working capital.
Management invested this asset in 2015 , and the currency is 1 to 2.69 at that time , even they sold at book value , should see some cash return based on currency and depreciated value in past 9 years.. that shall make their cash position stronger that before ..
The impact on egg producer is alike last year chicken producer ending subsidy, stock like CAB earning decrease significantly after chicken subsidy ended
The major impact after ending gov subsidy will increase egg market competition, as egg producer cannot rely on subsidy as profit. Egg producer will force to launch price war to protect their market share
The problem is other egg producers will compete aggressively with teoseng, as without gov subsidy other egg producer need greater promotion to fight market share and their profit.
Therefore, once gov end egg subsidy, active competition among egg producer will increase instead of current more passive competition due to gov subsidy support
The subsidy for chicken was terminated on Nov 1 last year, following which, the supply and price of chicken became more stable.
"When we took the unpopular decision of ending the chicken subsidy, many people belittled our efforts, saying that the price of chicken would soar.
Alhamdulillah, after the subsidy was terminated, the price of chicken no longer soared, and more importantly, the country benefited by saving RM100mil a month," he said – Bernama
Chicken price before subsidy cut amd ceilings price cap is RM 9.40/kg
After gov remove ceilings price and end chicken subsidy, market selling for chicken now at around RM 8/kg. Main chicken stock listed in bursa are CAB, CCK and Mflour (dinding)
In 2022, Malaysia exported $154M in Eggs. The main destinations of Malaysia exports on Eggs were Singapore ($138M), Hong Kong ($6.73M), Brunei ($3.24M), Maldives ($2.04M), and Timor-Leste ($1.5M).
Given the economies of scale and its integrated business model, Chew(Lhi CFO) believes Lhi and its subsidiary Teoseng will be well shielded from any adverse effects (removal of subsidy for chicken eggs). --The Edge 14.10.2024
Congrats to all holders unfazed by the news of the subsidy removal. Those with the gumption to buy in on the sell-off on that fateful day is laughing all the way to the bank today.
Teo Seng Capital (TSCB MK, NOT RATED, FV: MYR4.26) “Egg-ceptional” Value, Golden Yields Ahead Trading Idea
♦️ MYR4.26 FV based on 7.5x FY25F P/E. Teo Seng Capital is well-positioned to sustain strong earnings through cost efficiencies and steady demand driven by population growth and tourism. Benefiting from favourable market conditions ie strengthening MYR and lower feed costs, its resilient performance is further supported by its planned distribution centre in Pahang, which will bolster supply chain efficiency for its top mini-market chain client. With attractive dividend yields of 10.3% (annualised) and 7.2% for 2H24F and FY25F, TSCB should be rerated from its low 4.2x FY25F P/E.
PROPOSED BONUS ISSUE OF 300,008,175 NEW ORDINARY SHARES IN TSCB ("TSCB SHARES" OR "SHARES") ("BONUS SHARES") ON THE BASIS OF 1 BONUS SHARE FOR EVERY 1 EXISTING TSCB SHARE HELD ON AN ENTITLEMENT DATE TO BE DETERMINED AND ANNOUNCED LATER ("PROPOSED BONUS ISSUE")
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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....
Sslee
6,957 posts
Posted by Sslee > 2 months ago | Report Abuse
The question why chase up Teo Seng but not LTKM?