I wonder... Eggs production can contribute so much of income? Anyone can give a brief business point of view for future growth for Eggs & Chicken production? Thanks
Personal View, company haven't fully utilize its feed mill plant, expand to egg business, utilize machine make more food to feed more chicken, to lower their marginal cost. at the same time increase income from eggs. it seems work~ perhaps can see some profit margin improvement in the coming quarters. company have a lot facility and land market value about 100m, hundreds acres of free hold land, expand to egg business is one of the best strategy to fully utilize their land and assets. NTA : RM3.20!!! (1.50 from freehold land)
LTKM : NTA rm4, price is rm5, 1.2times book price. QL : NTA rm1.04, price 3.5, 3.5times book price. LayHong : NTA RM2.5 , price 3.4, 1.3times Teoseng : NTA RM0.50, price 1.44 3times
Come on, if this company successfully integrated their business to eggs business, NTA RM3.20, given 1times book price. It potentially worth rm3.20 in the coming years.
Now is the question, is this company's management well prepared in order to compete in eggs business?
Yes, they are ready, as you can see their revenue jumped from 2013 to 2014 after phase 1 completed (420k eggs/day), What if 2nd phase egg farm was done? production 850k/eggs daily, revenue will jump again.
Remember 1 key point, they make their own food, breed their own broiler, now just use their feed and broiler to produce eggs. business started to integrate.
this counter is a gem, company is a gem. growing star. it will be the next LTKM?
Risk involved, Their management reliable?
Buy it, nothing to lose, company have strong assets backed, potential to be grow~ ready to grow ~
Opportunity, Company have intention to export their eggs. weaken RM might helps them open the door. Malaysia Growing population, egg is the best source of protein. u scare no demand? no money can earn? if the price of egg increases 100%, to RM0.80, people still eat. Don't you?
you could miss LTKM a year ago. but you should not miss this. if you buy when the financial results prove to you, it is too late. buy for medium to long term. So little downside risk, a huge upside potential, worth to buy. if I am analyst, I will not only give buy call, I will give all in call. hahaha, joking~. I am not a stock promoter, I just hope the stock deserves its true value.
to Garfield> I used to be a farmer, FCR is a crucial to control their cost, enhance margin profit. How to lower FCR? Better quality of food, / better environment to culture crops/ enhance the chicken genetic, and reduce the growing time. previously took 40days-60days to grow? now it can be achievable at 28days. if they are using the latest culture technology, we are 12 hrs day and night, the room can make the environment become 8hr day 8hr night , 8hr day, 8hr night. it save up 50%. tipu the chicken to eat more , sounds impossible, chicken got so stupid meh? yes it is. so it reduced 50% of the growing time, it is very command in European and developed country. Therefore, the future of agriculture, no longer an agriculture. is more like a manufacture......modern farming. Agriculture is the most sustainable business I could say. go back the hierarchy of human needs, we need food. back to hierarchy of nutrient, we need calories, and protein. cheapest sources of protein = eggs. a lot of researcher doing research how to enhance the FCR, nutrient enhance, technology all that. Therefore I think this industry just growing. still huge potential to reach world standard.
PW which is also the country’s leading livestock player reported strong net profit growth in 9M14 by 125% to RM10.5m from RM4.7m in 9M13 on the back of 14.4% hike in revenue. -Currently, the group operates the largest broiler farming business in Penang, Perak and Kedah. - It also operates one of the country’s largest feed mills in Bukit Minyak, Penang . -Net assets per share Rm3.710
$$$$$$$$ Layer business to lead growth & Good potential in egg layering.$$$$$$$$ - It just made its first venture into table eggs production since 2013 (Phase 1) with its new layer farm at Pendang, Kedah. With the layer operation, PW earnings are set to be better than pre-FY13. The expansion program, known as Phase 2, in the existing Phase 1 farm is on-going, which will be ready by this year-end or early 2016 with the same capacity of Phase 1. -The group is also under the planning stage for Phase 3 & 4 in the same area of Pendang for similar egg production capacity as Phase 1 & 2 (850,000 eggs) with the same total capex of RM40m. Phase 3 will kick start once Phase 2 is completed.
- Layer operation will increasingly become a significant earnings driver of PW Group once the four phases of layer farm expansion are completed with contribution likely to enlarge to more than 40% from 10% currently.
Look forward to its dividend payout expected this month in conjunction with its 4Q14 results release. Thus, PW can be a dark horse with very low projected PE & PB ratio, along with satisfactory dividend yield.
PW VS Teoseng TEOSENG --- Financial year end net profit 48.792 million (increased 108.74%) --- PW , already reported strong net profit growth in 9M14 by 125% to RM10.5m from RM4.7m in 9M13 on the back of 14.4% hike in revenue. This means 4Q14 results release should be very impressive if refer to Teoseng financial year end result?
Dividends $$$ A first and final dividend of 8 sen was declared in 4Q.(FY13: 5 sen).$$$ PW Financial year end net profit 11.283 million (increased 111.77%) -Net assets per share is Rm3.76.
<<<<4QFY14 recorded a lower profit, this was largely due to weak selling price of broiler during the quarter, the impact of the east coast floods to the sales of broiler in December, loss on disposal of investment properties and impairment of receivables.>>>
The Board of Directors of PW Consolidated Bhd ("Board") is pleased to announce that the Company has declared an interim single-tier dividend in respect of the financial year ended 31 December 2014 ("Dividend") of 8 sen per ordinary share of RM1.00 each in the Company ("Share(s)") amounting to approximately RM5.792 million based on the issued and paid-up share capital of 72,398,385 Shares as at the date of this announcement.
The Board had determined that the dividend reinvestment plan ("DRP") (which was approved by the shareholders of the Company's extraordinary general meeting held on 8 January 2015) will apply to the entire Dividend which will provide the shareholders of the Company with option to reinvest the Dividend into new Shares.
An application will be made to Bursa Malaysia Securities Berhad ("Bursa Securities") for the listing of and quotation for the new Shares to be issued pursuant to the DRP ("Application"). The implementation of the DRP on the Dividend is subject to the Company obtaining approval from Bursa Securities for the Application.
The book closure date in respect of the Dividend and the issue price of the new Shares arising from the implementation of the DRP will be announced at a later date.
This announcement is dated 25 February 2015.
Means the dividend of 8 cents per share MUST reinvest into the company and the company will issue new shares to shareholders?
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....
Joel
4,580 posts
Posted by Joel > 2014-09-08 22:10 | Report Abuse
很大可能会至少有10 CENT DIVIDEN TO PAY。
就算没有10 CENT, 都有8 CENT DIV。
COMMENT : BUY !
TP BY THIS WEEK 至少 RM2.00 !