Leong Hup International Bhd Fair value: RM1.02 BUY
AMINVESTMENT BANK RESEARCH (MAY 24): The group believes that the imbalances of broiler and day-old chick’s (DOC) demand and supply dynamics have been corrected. We remain confident that poultry ASP (average selling price) will continue to hold despite Movement Control Order 3.0.
Second, the group is confident that ASP of eggs will recover from March’s Salmonella scare in the next couple of months.
Third, Indonesian prices have been seeing a stable recovery since the culling exercises took place in 3QFY20, while upcoming and newly completed livestock and feed mill expansions in both Vietnam and the Philippines are envisaged to drive revenue and profitability margins. Meanwhile, the group’s confectionary chain The Baker’s Cottage continues to register stable growth, with 132 outlets in operation and a further 450 by 2023F, anticipated to contribute about 8% to Malaysian revenue in FY21F.
We are positive on the group’s revision to product mix, although the group may feel a pinch in July as a result of rising raw material costs. A silver lining is that corn and soybean supply is expected to improve in 2HFY21, which may provide a reprieve in the form of lower feed meal costs in 2HFY21.
Consumer sector wil fly in 2nd half of the year, again LHI is one of the Top Picks. Nowadays Investors n sharks like to goreng small, medium cap counters
LHI's poultry n poultry related businesses in South East Asia are growing + setting up new merkets in Cambodia n Myanmar + massive expansion of Baker's Cottage outlets
LHI strength: Biggest & specialist in Broiler n Layer DOC are one-day-old chicks production. Many big player like QL & Huat Lai depends LHI to suppiy DOC
Strong in Feedmill biz & supply feed materials to contract farming - pig & layer & broiler chickens . Feedmill biz are expanding especially in Indonesia & Vietnam feedmill plants
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....
# dare#
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Posted by # dare# > 2021-04-19 14:42 | Report Abuse
any chance to go to IPO price?