EPS for Q2 is likely double i estimate

Hi guys, FYI, Malayan Flour , which has quite similar business to CAB, has posted 40% increase in EPS for current quarter ( Jan to Mar 2017) despite Q on Q revenue is flat. Just imagine, CAB has increased its revenue by 37% since last quarter and how much net profit it posted for Q2 2017 .... ?

Aries_saham, you know the trend well :). Anyway, time will prove whether this counter share price hit RM4.00 by end of August 2017 and I look forward to viewing Q2 result .

congratulations to all investors !

look like contra guys are getting less and it is quite stable as well.

Contra guys and speculators should Be out.

Contra guys always suffer loss without good analysis.

If Heng Yuan declare good dividend then it will easily hit RM7 over a year.

As investors, we do not buy share at higher price but buy at lower price as fundamental is still strong and can foresee EPS in future ( if the price lower after correction. Nowadays, insiders has been taking profit that I know.

Some guys have contra mindset and suffer loss.

It is a good chance to buy them at lower price like RM2.7

aries_saham, you might be right, there are still many speculators and contra guys for this counter.

Of course, decision is done by yourself as it is your money. Unless you do not have a picture to analyse. I prefer to analyse with investors instead:)

Hi guys,
1)Just imagine average farm chicken price per kg was RM5.15 ( each chicken was about RM2.2 kg) for Jan to Mar 2017 as compared to Q1 (Oct to Dec 2016) RM4.7 per kg. in Q2 2017, CAB chicken capacity was 5.5 million per month.

Based on above chicken price increase, how much increased net profit will be for Q2 2017?

Estimated net profit for Q2 2017:RM22 million
Q1 2017 net profit of RM7 mil ( based on RM4.7/kg of chicken + increased profit of RM15 mil ( based on RM5.15 per kg of chicken) .

2) Don't forget, CAB chicken capacity will increase further by 2.5 mil per month based on completion of Farm Best poultry by roughly end of May 2017. This will increase net profit as well as its slaughter house capacity from current 100,000 chicken per day to .....( not sure) which will improve profit margin.

3) CAB has very good business chain: from feed mill, poultry, processing, marketing ( supermarket and restaurants client - Taxes, Marrybrown, Chicken Rice...,) and export to Singapore.

4) JV with Salim Group in Indonesia where chicken consumption per capita is about 7kg per year as compared to Malaysia is about 40kg per year and Salim Group has 500 KFC restaurants in Indonesia. This effect might take in 2019 due to completion of poultry in Jakarta will take a year.

5 ) CAB will consider exporting chicken to Japan as its capacity is double that might happen in 2018 and collaboration with FELCRA as well.

Most importantly and recently, "how CAB management increases its shareholders wealth by its activities" such as it's increase in chicken capacity per month will increase its net profit significantly as mentioned above and improve its profit margin (via acquisition synergy) as well. Wait and see coming Q2 and Q3 financial result as a good CAB performance evidence. Hope these estimates will help you and Happy investment !

Hi guys, enjoy another wave after this consolidation.

It is a good consolidation.

Hi guys, as I early mentioned about the strength of CAB, this counter share price is very likely to hit RM 4.00 when the split and bonus are effective if I am not mistaken. Cheer for investment !

Yup by the ratio of 3.125 [ 5/2 x (1+1/4)] on 2 shares are to be split into 5 shares . After that, 1 bonus share for 4 split shares.

Congratulations to all and have a good investment!!

Hi guys, CAB has a very good business chain; from feed trading, slaughtering, marketing ( supermarket), export to Singapore - about 13% of revenue, quick restaurants ( Taxes, M.Brown, Chicken Rice, Secret Recipe...) that become strong goodwill of CAB. Happy investment !

Hi guys, just imagine with good evidence that average chicken price for farmer has been at RM5.20 to RM5.40 per kg as compared to last Q ( Oct to Dec 2016) of RM4.70 ! . CAB has chicken capacity per month about 6 million currently and increase to 8 million chicken per month in 2019

Plans to enter Indonesia still intact. The company is working closely with the Salim Group to set up integrated poultry farms in Indonesia where the consumption of chicken per capita is only 6.3 kg compared with 40.6 kg in Malaysia, according to the Organisation for Economic Co-operation and Development (OECD). We have not factored any potential growth from this venture in our assumptions. We understand that both parties will start building the farms this year. We expect earnings contribution from FY19 onwards as it will take another year for the farms to be built and for the chicken to grow should everything progress according to plan. Recall that Salim Group now owns 19% in CAB and appointed a director on CAB’s board. CAB can also leverage on its relationship with the Salim Group to sell value-added frozen food products in Indonesia going forward as the Indonesian conglomerate owns more than 11,000 Indomaret convenient stores and over 500 KFC outlets there.

Growing higher value food products. After acquiring Farm’s Best’s frozen food business and slaughter house, CAB is working to grow this division, which provides higher margin compared to the integrated poultry farming segment. We expect the division to contribute about 6-7% to the group’s total sales but negligible profit contribution due to high initial costs from consolidating the new capacity. That said, there is much more upside potential from this segment from FY19 onwards as we expect CAB to reap the benefits of synergy. It could also export the frozen food to countries like Middle East and Japan due to the long shelf life of the processed food to further enhance sales.

Expect FY17 core earnings to grow by 27% to RM27m. We expect higher capacity and average selling prices to drive up CAB’s integrated poultry business, which is estimated to contribute 83% to the group’s total sale. We expect higher average selling prices in FY17 due to stable chicken meat prices yoy and CAB’s slaughtering capacity which almost double, following the completion of acquiring Farm’s Best’s processed food division. When the company successfully finalised the purchase of Farm’s Best’s poultry farms, its broiler capacity would be boosted further. We expect its core income to grow further by 9% to RM29.4m in FY18 based on its existing businesses.

Hi guys, let me share with you why this stock will likely be able to hit about RM5.00 in next 2 years (until 2019) when you read this attached article as follows:

http://www.thestar.com.my/business/business-news/2017/01/21/cab-set-to-crow-like-a-rooster/

AA, well done in term of management that has make its share price has been up a lot since 2 years ago :). This stock should be kept as investment instead.

Supermax recommended CAB also perform very well as well only he did not use nice way to recommend


Happy investment !!

Of course, those more-than- 5% substantial investors have to announce change in % interest as they acquire / dispose of shares in the Company.

Yup, due to main investors have been collecting shares over expected much better financial performance and business strategies in middle term. Happy investment !

Hi guys, this counter share price will be up soon !!

Now, most of ppl keeping this counter shares are good investors and main investors who Know this Comapny's financial result well and it's business strategies as other speculators have sold out their shares.

Hi guys, as chicken price per kg was about RM5.15 for Jan - Mar 2017 as compared to RM4.7 per kg for Oct -Dec 2016 with about 6 mil chicken capacity per month now, EPS will be likely 8 Sen for Q2 2017 following its business strategies and 38% increased revenue and improved net profit past quarters. Based on PE of 13 from Q2 2017 onwards, my estimated TP will be RM4.16 by this year end. Happy investment !!

Hi guys, when you look into attached reports, it is easy to find that CAB will likely hit net profit double this year over its business expansion, strategies and good chicken price over strong demand for chicken. These will attract more main investors to put money in this stock. Happy investment !

Golden luck, you mean Cargill Group, US based company, has invested in CAB ? A few years, There was a report stated that Cargill Group might invest in CAB.

When u look at this stock business is quite similar to Lay Hoon in term of business expansion and result has been proven.

Many retail investors or speculators having warrants, have sold out their warrants !!

Please use lay Hoon business expansion as guidance and next Q result is double on expansion and latest chicken price

Many retail investors don even know how to calculate next quarters result on latest trend on chicken price, volume per months and business expansion

There are many retail investors with retail mindset for warrant :)

Oil price is continue to drop significantly and MYR is on the rise against USD will help improve AAX financial performance. Wait and see !!

Private placement was at RM2.07.

John 1234, u r experienced player .

LATEST NEWS, CORPORATE
CAB Cakaran, Felcra to explore collaboration in agri and aquaculture business
By Sulhi Azman / theedgemarkets.com | April 7, 2017 : 6:40 PM MYT
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Translated by Google Translator:
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KUALA LUMPUR (April 7): Food producer CAB Cakaran Corp Bhd has tied up with Felcra Food Industries Sdn Bhd to mutually explore the possibility of collaborating in the agriculture and aquaculture business activities.

In a filing with the stock exchange it announced that it has signed a non-binding letter of intent with Felcra.

“The company will make further announcements on the matter in the event both parties reach a formal agreement on this matter,” said CAB Cakaran, which operates 10 Kyros Kebab outlets Kuala Lumpur and Selangor.

Felcra Food Industries is a wholly-owned subsidiary of Federal Land Consolidation and Rehabilitation Authority (Felcra), the sister government agency of Federal Land Development Authority (Felda).

Prime Minister Datuk Seri Najib Razak had in December last year said Felcra would spearhead government efforts to reduce dependence on imported food and improve food security.

In 2015, Najib had said the food import value exceeded RM45.4 billion.

Of this, he said, RM5.2 billion was for staple food and edible product imports, RM3.4 billion for dairy products, RM1.8 billion for fruits and vegetables, and RM1.5 million for cocoa.

CAB Cakaran closed six sen or 2.59% up at RM2.38 today, giving it a market capitalisation of RM430.91 million.

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Hi guys, Q2 FY17 result is expected to be better as compared to Q1FY17 result following the management is likely confident that average price for broilers for Q2 FY will be higher especially during Lunar New year and due to shortage in broiler supply.

Remember, only poultry division contributes much higher profit to the Company as compared to value added manufacturing & trading division (due to inefficiency of distribution and higher operation cost) and supermarket division ( due to higher food wastage and inefficiency of operation) which are recorded a less losses. However, the management is improving the efficiency of the distribution and reduce the operation cost and wastage in perishable food section via more promotion activities.

Note: current broiler price for Q2FY

There are correction and consolidation of this counter share price.

Wish all the investors happy investment !!

Our target price is about RM4 to RM4.50 over next two years following its expansions

Thanks WealthWizard for your sharing.

MY ER Astino Berhad – Mar 2017:

Prioritising domestic market for Agro-house products.
Agro-House segment contributes less than 10% of the income generation, and poultry industry in the region (ASEAN) has seen a robust double-digit growth. Despite entering into this segment, the management aims to establish presence domestically before going regional. Poultry production saw an increase of 20%+ (between 2010 and 2016e), which might make agro-house products relatively more attractive to ensure quality process.

Hi guys, enjoy investment uptrend following foreing fund flowing into bursa market.

OTHERS
Description CONTRACT FOR THE PROVISION OF DRILLING RIG SERVICES FOR DRILLING PROGRAMME FOR VESTIGO PETROLEUM SDN BHD
1. INTRODUCTION

The Board of Directors of UMW Oil & Gas Corporation Berhad ("UMW-OG") is pleased to announce that UMW Offshore Drilling Sdn. Bhd. (“UOD”), a wholly-owned subsidiary of UMW Malaysian Ventures Sdn. Bhd. (“UMV”), which in turn is a wholly-owned subsidiary of UMW-OG has received a Letter of Award from Vestigo Petroleum Sdn Bhd ("Vestigo") for a contract for the provision of a Jack-Up Drilling Rig for Vestigo.

2. DETAILS

The Contract is for the provision of Drilling Rig Services for Vestigo’s Drilling Programme, whereby UMW-OG Group will assign its UMW NAGA 2 for this contract. The Contract is to drill one (1) firm well, commencing end of first quarter of 2017.

UMW NAGA 2 is an independent-leg cantilever jack-up rig that has a drilling depth capability of 30,000 feet and has a rated operating water depth of 350 feet.

This announcement is dated 10 March 2017.

FPSOs progressing well – The 4 completed FPSOs will start contributing to earnings as the Armada Olombendo (Angola) achieved first oil, Karapan Armada Sterling III (Madura) and Armada Kraken (North Sea) approaching first oil and Armada LNG Mediterrana (Malta) being hired.

 Strong orderbook – After securing 3 new OMS contracts in 4Q16, orderbook inched up to RM25.6bn (FPSO: RM23.5bn, OMS: RM2.1bn) from RM24.1bn in 3Q16 with another RM12.9bn worth of potential extension. This will sustain the group’s earnings for the next few years with FPSO contracts ranging from 4 to 12 years.

Fundamental basis on which share price is target is impartant for investment. Hope you guys have a good earned return from this counter !!