yayayayaya, you got ur insider news its hitting 2.2 soon, i also can say i got my insider news its going to be delisted too. come on la! dividend policy and track records says it all
I think CPo price drop will have adverse impact to yeelee. Why? Majority of the oil produced from own palm oil estate. If the CPo price drop, yeelee don't have competitive advantage to competitor.
Yee Lee spiked to high 11 cent on last 2 days when Kenanga Research called the company an “under appreciated jewel” which is “deeply undervalued”. .
“Yee Lee is undervalued as it is trading at historical price-earnings ratio (PE) of 7.6 times or 57% discount to its peer average historical PE of 17.9 times. In addition, Yee Lee is trading below its book value of RM1.90.”
“We believe that these discounts are not justified due to its growth prospect and strong profitability track record,” said the research house.
Besides that, Kenanga expects the company to do better in 2H14 with earnings from the manufacturing and trading divisions improving.
Kenanga Research gave the company a target price of RM2.10 and a ‘Trading Buy’ rating.
“Overall, we expect potential total returns of 46.9% (upside 44.8% and dividend yield of 2.1%) from here,” it said.
Disclaimed :This is not a buy or sell call but just for ''Reference Only ''.Gila Saham is not responsible for any lost or misinformation and trade at your own risk
Since when does Yee Lee source most of its palm oil internally... 2013 intra-company sales for plantation division was only RM5m compared to RM86m external revenue generated from the palm oil refining operation. Note that palm oil refining business usually commands low-single-digit operating margin.
duitKWSPkita - to simplify, we could say that Yee Lee's oil palm plantation sold RM5m worth of oil palm to its own refinery, which then processed the oil palm into edible oil. However, the total sales of edible oil by its refinery was around RM86m, which means that Yee Lee must have bought a lot of oil palm (likely > RM70m) from outside since the refining margin is ultra thin (haven't updated my model but the division's 2013 pretax margin was likely around 4%).
Since I already did my review with Hap Seng, then let do another. Yee Lee deliver another profitable quarter although the result is below my expectation. Yee Lee is my 3rd largest holding in my portfolio
When it comes Yee Lee, we must understand one thing & that is Chuan Sin. A trading business must have its own house brand because of competitive FMCG nature
Spritzer is manufactured by Chuan Sin which also include other brands such Cactus & Summer. Spritzer brand is a market leader in bottled water & with a good margin compared to competitors. Situation analysis is the best way to explain Yee Lee
Strength Sole distributor for No.1 bottled water Spritzer. Cactus & Summer are targeted towards customer segment with lower disposable income. In addition to that, Chuan Sin also OEM for all the bottled water in Tesco, AEON, Petronas & Petron. Tesoc Value, TopValu, Mesra & Cactus with Petron Logo.
Chuan Sin controlled 67% market share of bottled water in Malaysia & Yee Lee is the distributor. This information is only available through Nielsen. It's P&C information which I can't publish out the details. I can get sued by doing it
Weakness It's obvious Yee Lee has many under performing brands against superior competitors in different categories.
If anyone tell me Morning Kiss can beat Colgate or Oral-B, that person must be a total outsider with zero knowledge about FMCG
Yee Lee also carry detergent powder called Kizz which unfortunately where Dynamo, Top & Breeze are the big boss here. It's game over as far as I know
Rusky Mee is another unfortunate victim. Maggi & Mamee will kill other brands that is targeting mass market
I like to drink tea but Sabah Tea is not my preference. I always like Chinese tea & sometimes Boh Tea
Opportunity To turnaround an under performing brand, Yee Lee must change its VDMP strategy because the current one definitely fail. By competing against global brand & targeting the same customer segment, it's a suicide mission at its best
Cooking oil industry is a virtually zero growth industry because of government quota & subsidy. How much a company can produce & sell is pre-set. Red Eagle is No. 2 behind Lam Soon Knife brand. If there are changes in government policy, then profit comes from cooking oil
Threat Distribution contract is the life blood of every trading business. The margin is low but by having the distribution right of MNC FMCG, the assortment strategy will work well for every trading house. Economies of scale plays an important role at this stage. Sale volume is important in FMCG business & without it, all the assortment & VDMP will fail big time
This year, I have approx. 18% gain from Jan to today or 30% based on my average price. I am looking forward to see how my competitor Yee Lee going to perform in 2015
Hi Hjey, thanks for your detail sharing. Yee Lee is also one of my bigest holding. I prefer it because of Spritzer as you mentioned. Currently, holding of Spritzer through Yee Lee is cheaper approx. 1.50 compare with market value of Spritzer 2.00. Yee Lee is also my long term investment with low PE of 9 (consumer stock prospective). It will be improved with higher Ad & Promotion (A&P) & operating expenses will reduce after the end of A&P. Yee Lee not only can sharing profit from Spritzer, but also earn from distribution of Spritzer.
Please correct me if i wrong, i think Cactus & Summer, other OEM brand are distributed by Chuan Sin directly.
Goinvest88, you are right. Chuan Sin also delivered its own products. It's separated by channel such as modern trade & general trade. For petrol kiosk OEM, everything delivered by Yee Lee.I never thought anyone know this stuff
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....
skyz
1,650 posts
Posted by skyz > 2014-07-17 08:31 | Report Abuse
yayayayaya, you got ur insider news its hitting 2.2 soon, i also can say i got my insider news its going to be delisted too. come on la! dividend policy and track records says it all