Poultry producer Leong Hup International Sdn Bhd is looking to raise as much as US$600 million in an initial public offering (IPO) and has hired three banks to kick off the process, two people familiar with the matter told Reuters.
Don' worry about leong hup, They already have more than 10 cornerstone investors, EPF, Hong leong bank,singapore and overseas investment fund, ( cornerstone investors are not allowed to sell their shares for minumun of 6 months,after 6 months are only allowed to sell certain percentage, very safe bet
*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 a new market i.e. Philippines and optimising its value chain through further vertical integrations.
Valuation We value LHI at RM1.34 per share based on pegging FY20F EPS of 6.0sen to target PER of 24.0x. This is premised on the average historical three-year mean PER of similar companies that engage in poultry operation. We believe the based PER derived is fair given the: (i) scale and broad presence of LHI’s operation; and (ii) verticallyintegrated nature of its business.
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....
cheongmichael
95 posts
Posted by cheongmichael > 2012-03-28 12:53 | Report Abuse
LHH and Emivest both soon going to close shops after the capital repayments done.