Background: CCK mainly involve in poultry and seafood (in prawn agriculture and prawn processing), trading and transportation business.

what are the strong path for CCK and attract us to look at this stock?

1. JV with Gold Coin Sarawak has significantly contribute to the company financial performance and also securing the long term supply of quality feed, given that animal feed is key cost component for a poultry business. Now CCK business enter into one stop solution which start with raw materials business (animal feeds), poultry business, and also the distribution and trading business. Definitely, the risk of control feeds price can reduce after this joint venture.

2. Demand of chicken meat, egg, seafood and etc is remain strong. No matter how, this is the daily foods and the demanding is always there by consumers.

3. Company business is in growing stage. Company manages to achieve continuing growth in the past 9 quarter results.

4. The group has over 60 wholesale and retail store, trading departments as well as the factories in Malaysia. In the past few year, the group also expand to Indonesia. So the distribution network is strong as compared to others competitor.

This not a buy call. But we forecast the TP price will be at RM1.20, once CCK breaks the first resistance at RM1.00.