Layhong shareholders better change to CCK today closed with Three White Soldiers!! Expected breaking 60 sen soon, meanwhile layhong still in downtrend and possibly reach 30 sen after QR. Be smart investors, make a wise choice!
Wah lau, leong hup give upfront warning leh. Say coming QR significantly lower. Average Sales up 10% but average selling price down 50%. Next tuesday ho seh liao.
give warning for them insider and adik beladik mau collect low maa.. look what happen to vs..same case maa. later up balik lor..kikiki. old tactic la apek
LayHong's earnings is not much impacted by broiler prices, just like Leong Hup because LayHong's main products are eggs and processed chicken products.
In FY19 (ends in Mar'19), LayHong had the worst year in past 5 years mainly due to RM15mil bird culling in Sabah farm, uptrend in corn and soya bean prices, i.e. feed cost, and operating loss in new JV NH plant. I foresee the worst is over for LayHong and its performance is almost certain to improve in FY20 (Apr19 - Mar20) due to the following positive factors : I) No more bird culling loss ii) Feed cost has reduced due to recent US-China trade war iii) The new NH Foods operation should turn loss in FY19 to gain in FY20 when new plant's utilisation rate increases and start-up cost reduces.
The elimination of negative factors in FY19 is enough to lift LayHong's FY20 earnings. The worst is over for LayHong and the performance improvement is almost certain in FY20. The question should be asking is how much YoY improvement we can see in this new fiscal year ? The magnitude of improvement will determine the magnitude of stock price appreciation.
Keep for ~one year (from now till end Mar'20), we should see higher stock price for LayHong in the end of one-year holding period. The above is of course based on the condition that the world does not slip into recession by escalating trade war, or another bird disease breakout some where in Malaysia.
Value88, not everyone wanna invest in long term. hence, for short term traders, do avoid LH for now as the trend is still on downtrend. Come and join the ride when LH has proved its improvement in Nov 2019 results release. For now, go and trade elsewhere cause LH wont give you the quick return and mostly Yeap family will continue to sell down LH especially on the warrants.
How can you foresee that there will not be any repeat of the tragedies of this year? From my knowledge of the tuaran farms in Sabah for LAYHONG,
1. The bird culling loss may reoccur because the farm conditions have not changed at all, no additional health upgrades and controls similar to the QL farms on the other side, meaning all they were doing was culling with no planning for future issues.
2. Feed costs will reduce? I highly doubt it, as LAYHONG doesn't have a feed mill production business, and trade war will cause many unnecessary costs which will affect everyone in different ways.
3. I would wait until the nh operations actually turn a profit before being so confident about something that is currently losing money.
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Posted by value88 > Aug 11, 2019 2:28 PM | Report Abuse
In FY19 (ends in Mar'19), LayHong had the worst year in past 5 years mainly due to RM15mil bird culling in Sabah farm, uptrend in corn and soya bean prices, i.e. feed cost, and operating loss in new JV NH plant. I foresee the worst is over for LayHong and its performance is almost certain to improve in FY20 (Apr19 - Mar20) due to the following positive factors : I) No more bird culling loss ii) Feed cost has reduced due to recent US-China trade war iii) The new NH Foods operation should turn loss in FY19 to gain in FY20 when new plant's utilisation rate increases and start-up cost reduces.
Posted by Icon8888 > Aug 12, 2019 11:14 AM | Report Abuse
ya, your QL is in this business also
so Herbert's chicken are susceptible to Viruses and yours are not
Posted by (S=QR) Philip > Aug 11, 2019 7:57 AM | Report Abuse
LAYHONG, here are the facts.
Oversupply of DOC and eggs? Facts. Only one business model? Fact. Very low margins, high competition? Fact. Disease and illness ? Fact. Poor growth history? Fact. Not market leader? Fact. Lackluster management? Fact. No expansion plans? Fact. Poor share price performance? Fact.
There are so many assumptions to make to predict LAYHONG success, I find it so hard to even try.
seem like poultry business very challenging this year. LHI issued a statement on lower revenue on upcoming QR. Mflour releases QR yesterday and glance thru, main losses is from poultry as well. In fact, grain and flour were making money but the profit was canceled out by the loss in the poultry business.
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....
WongKuok
65 posts
Posted by WongKuok > 2019-08-06 19:11 | Report Abuse
Call me Ong Huat