Well I have already mentioned before that currency will play a part in the increase of cost for feed and it certainly did. But I must say the management did well enough to lower the impact.
Looking at the EPS, at first I thought we didn't do well enough. But then I remembered again that we have bonus issue of 1 for each existing 2 shares held. So we cannot look at the EPS only since it has not been adjusted for the bonus share.
When we look at Q3, Earnings Before Interest & Taxes (EBIT) stands at RM 13,409,000 compared to last year Q3 RM 18,255,000. Which is not good. But net profit is higher RM 11,972,000 compared to RM10,818,000 which is not too bad.
When we look at the bigger picture for 9-months FY 2015, both EBIT and net profit actually increased compared to 9-months FY 2014 by 1.8% and 10.8% respectively. Not too bad.
Gain from Forex this year amounts to a total of RM 4,858,000 and therefore I believe the management did well to minimize the impact from our currency situation. I think for the full year 2015 we should expect roughly the same result or slightly better from year 2014. But I would still again caution on the weakening ringgit.
I think another factor is the EPS. Some people might just look at the EPS and think that it's a bad result. When actually if you adjust it to the bonus issue, the EPS should be 4.14 sen vs 3.73 sen for Q3, and 12.73 sen vs 10.68 sen for FY 2015-2014.
Teoseng's latest Q better than I expected. Likely will maintain 4.1 cents next Q, I expect RM 1.70 for FY15, unless Gred AA egg price breaches RM0.40 Feed price is hedged till end of this CY, not sure the extend of USD effect for FY16. So no go for me.
Teoseng is a stock for value investor and not speculator. It is a stock not for those who enjoy excitement such to those striking a lottery.
Most of Teoseng farms are in Batu Pahat therefore it makes sense for them to deliver to Singapore market instead of local. With 34-38 cents per egg, it is actually higher than the other producer. In two years(2013-2015), their net profit almost doubled. This result is very commendable.
Teoseng management has been very shrew. They put on hold the Sungai Linggui new farm which would cost them RM200 million given the current market situation. When life are tough. People will choose eggs over other proteins. Time will tell.
Happy egg memang bagus ..tapi bagus pun bukan naik terus.. Lagi pun da naik masa panjang liao ..kena undur sikit baru lompat balu jauh Undur lagi bayak lompat lagi jauh....x undur wa x da peluang naik kereta..
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....
hissyu2
868 posts
Posted by hissyu2 > 2015-11-16 13:27 | Report Abuse
result is out 4cents EPS