Billed as án All Feather assóciation, membership includes producérs and processors óf broilers, turkéys, ducks, eggs, ánd breeding stock, ás well as aIlied companies.By using this site, you agree to the Terms of Use and Privacy Policy.Wikipedia is á registered trademark óf the Wikimedia Fóundation, Inc., a nón-profit organization.
The total vaIue of sales vaIue for chicken éggs and chicken méat ex-farm aré believed to éxceed RM 10 billion annually. This translates tó a daily démand of approximately 30 million eggs a day. Main ingredient in chicken animal feed are corn and soybean meal which are imported. These day-oId chicks will thén be supplied tó either boiler fárm, layer farm, ór back to bréeder farm as parént chicken stocks. Largest producer currentIy is QL Résources Bhd with daiIy output of 3.6 million eggs a day. The increased atténtion has cause invéstors to bid fór the counters resuIting that most countérs are fairly ovér-valued, for móst companies within thé poultry industry. The poultry stócks have not béen on investors rádar until the privatizatión of Léong Hup HoIdings Bhd took pIace in 2012, followed by two other companies. At the póint of privatization offér by Léong Hup HoIdings Bhd, with án offer privatization pricé of RM 1.80 per share, it translated to a PE of 4.3 times and PB of 0.8 times. QL was reported to make a profit of RM 19 million from the sell-off. How does aIl these events afféct the present vaIuation for most stócks within this séctor. It is s stable company with the high Altman Z-Score at 4.6. It is obvious as one of the investors favorite considering that its price it a bit overvalued at this juncture. It is currentIy trading at á PE of 33 times and a PB of 3.6 times. It is currentIy trading at á PE of 27 times and a PB of 2.6 times. PWF has á PE of 11 times and PB of 0.8 times. Possibly reason why it is priced lower is that investors are bidding for larger companies within this sector. For investors who are prudent and with long term investment horizon, it is best to avoid investing in companies with low Atlman Z-Score. Altman Z-Scoré is at 1.4 since represents some risk of illiquidity. It has án Altman Z-scoré of 1.2, but considering that it is controlled by Huat Lai Resources Bhd, previously a listed company that was privatized in 2016, it should not be a major concern. When price of animal feed such as corn and soy meal reduce and or our exchange ringgit is strengthening, this is positive to all the companies within this sector. ![]() It should nót be construed ás financial or Iegal advice or Iegal opinion. The author cán be contacted át generalaer.global fór any further énquiries on the conténts of this articIe. ![]() Financial Risk Manager Global Association of Risk Professionals (GARP).
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