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 ..
Company shall use this money for the repayment of bank borrowing according to Nov 23 announcement , so we shall see the debt further reduce in Q3 24 , Teo Seng shall become the net cash company soon if they can maintain the current EPS ...
report from The Edge .. the corn price is still low compare to last year , hence the profitability of company should be intact if no impairment need to be settled ..
Company only received 900k of subsidy this quarter and they received 9.7mil subsidy last quarter , why ?? I saw another news , the farmers claimed that they did not receive any subsidy from government in past few months .. However , based on this QR , company managed to earn 26mil without much subsidy and EPS is 8.8sens , that means management is doing a good job here
Govt normally pays a big chunk of the subsidy at the end of the year. Last year Teoseng received more than 70% of its subsidy payment in 2H23 and around 50% of the total subsidy alone was paid only in 4Q23. I think it should be the same for this year as well.
On how much of the subsidy outstanding for the company, I think it's safe to assume that the amount will be at least the same level as FY23 given that the revenue for the Poultry Farming division is higher in 1H24 vs 1H23 (assuming this trend continue in 2H). Last year total subsidy received was RM 105mil. Hopefully the govt will pay the amount in the second half of the year.
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Posted by LubeTrader > 2024-05-15 12:11 | Report Abuse
The selldown today is due to retail investors taking profit and capital to chase glove counters? Open for discussion, anyone?