but big funds like quality, like big, and like predictability...and diversified over several countries and controls own feed operations....upstream downstream.
From what i see, LeongHup profit margin is higher, but they only focus on chicken business. it just like a larger version of layhong. and their brand not famous as nutriplus in malaysia, not sure about other country. But QL Business more diversity with plam oil, fish, retail n chicken.
Things are cheap for a reason and being a market leader, of course Leong Hup commands a higher valuation. The key is whether there is further growth potential.
For Leong Hup, the growth story lies in their overseas market in Vietnam and Cambodia
*New Listing* *Leong Hup International Bhd (6633)* *Target Price: RM1.43 (Buy)* We initiate coverage on Leong Hup International Bhd (LHI) with a Buy recommendation and TP of RM1.43 based on 19x CY20PER. We like LHI for i) being a fully integrated “pure play” poultry player, ii) dominant presence and position in ASEAN, iii) tailwind from favourable raw materials and iv) high quality associated branding with strong track records. We are also positive on LHI’s plan on expanding into new market i.e. Philippines, and optimising its value chain through further vertical integrations.
*Disclaimer* This information should not be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this information. We, our associates, directors and employees may have an interest in the securities and/or companies mentioned herein. *TA Securities Holdings Berhad (14948-M)*
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....
hhng79
1 posts
Posted by hhng79 > 2019-04-26 20:33 | Report Abuse
this IPO ok?