Yee Lee's pace has been slow & steady over the years. It could not rise too fast so forget all the sky high target price
It seems most do not understand impact from cooking oil subsidy removal to Yee Lee. The net profit amount before subsidy removal & restricted quota is 5 cent & below. Today is different story but Yee Lee still face big challenge in cooking oil market & that is Lam Soon
Subsidy removal will not have much impact to Yeelee. However, in terms of cash flow, it helps Yeelee to get back the $$ faster from the customers rather than waiting for our subsidy which only payout once a year/quarterly. Lam Soon is much established compare to Yeelee, and LamSoon incurs more money in advertise their products. Yeelee still slow and steady to grow organically.
Finally break and moved towards my tp. As one of the strongest advocate of yeelee, you all can refer to my article published back in my Blog and i3 calling yeele with initial TP of rm2.68
Red bull, Rebena, Eagle cooking oil, Sprintz drinking water, and hosts of other consumable products distributed/produced by Yee Lee are making good money. Would you like to join in? Good management, good governance but a bit stingy for dividend payment to shareholders will promote prudence. Would those who are going to attend coming AGM, please request for better dividend?
The AGM is usually fall on the month of May each year. The reason for Yeelee all this while to declare stingy dividend is mainly due to the subsidy of cooking oil received not in timely basis from our gov. After removal of subsidy, it will give Yeelee better cash flow liquidity to pay good dividend.
Dear all, I was just informed by my subscriber that some other goreng groups are now calling YeeLee to go to RM3. Regardless, whatever Groups arecalling out there, always remember FA stock like YeeLee which runs a solid business have its merit to be revalued / rerated. When I called out YeeLee at RM2.30, it was with sound basis that I call it as an undervalue gem. For those who have not read my article, I recommend all to have a read here. Thanks
Dear all, congratulations. YeeLee hit and close exactly as per the TP of RM2.68 which I called out back in Nov/Dec 2016 at RM2.30. Those who entered back when I called will be sitting on 16.5% return in 2.5 months. This is the beauty of value investing and finding undervalued gems. Enjoy the winnings
QR not yet out. VFTrader, i think before you say things, best to use some logic. Otherwise, it would seem like nonsense. YeeLee such a solid steady company, no need for anyone to write good analysis on their prospect.
Based on an informal survey i did recently, every 10 households, there is at least 3 are using Red Eagle cooking oil. This is why i said this counter should not be trading below RM3.
In term of whole Malaysia, Felda is market leader for cooking oil. However, LamSoon is market leader for cooking oil consumption in big cities then followed by Yee Lee.
Yee Lee QR good results were not noticed by investors. Investors' prefer to sell to take profit rather than wait for further upside in months to come. Why? Probable reason: they lack confidence in the Board and management to churn out more profit in coming quarters. Yee Lee made 23.78 cents per share but only declared 4.5 cents (last year 3.5 cents) giving only 1.77 yield that is even below FD 3%.
Dividend might not be a good way to push the company forward. Get the business and profit increase, dividend is no longer a concern. A lot of stock that grow more than 50% a year is giving DY of less than 2%. Investors know well, the value of the company not only relying on the Dividend. 3-5% growth reflected on the share price is more satisfy than DY.
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....
HJey
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Posted by HJey > 2017-01-13 12:47 | Report Abuse
Yee Lee's pace has been slow & steady over the years. It could not rise too fast so forget all the sky high target price
It seems most do not understand impact from cooking oil subsidy removal to Yee Lee. The net profit amount before subsidy removal & restricted quota is 5 cent & below. Today is different story but Yee Lee still face big challenge in cooking oil market & that is Lam Soon