|QL||Broiler, Layer, Feeds, Marine, Palm Oil|
|Huat Lai||Broiler, Layer, Feeds, Fertilizer, Trays|
|CAB||Broiler, Food, Marine, Retail|
|Lay Hong||Broiler, Layer, Food, Supermarket|
|Farmbes||Broiler, Layer, Food, Property|
|PW||Broiler, Layer, Feeds, Cattle, Food|
|Teo Seng||Layer, Feeds, Trays, Animal food & health products|
|LTKM||Layer, Sand mining, Property|
Charts below show 10-year historical corn & soybean price.
So, this analysis which uses annualized earnings (except CAB), will not be very accurate.
|Stock||FY End||Revenue||PATAMI||PATAMI %||ROE||CR||D/E|
CR = current ratio
QL is the largest among all in term of market cap, revenue and net profit, with its diversification in businesses and also geographical location.
Teo Seng is a subsidiary of Leong Hup which was recently taken private and delisted in 2012. Leong Hup is the country's largest integrated poultry operator.
Meanwhile, Farmbes recently appears as a subject of a RM380mil reverse takeover by Chinese-owned SHH (M) Holding Sdn Bhd.
US-owned Cargill Malaysia is reported to be keen on a controlling stake in CAB as well.
It seems like merger & acquisition activities are robust within the poultry industry.
# base on annualized earnings
Besides Teo Seng & LTKM, PW is also worth a second look.
It just made its first venture into table eggs production since 2013 with its new layer farm at Pendang, Kedah.
From its FY13 annual report, PW mentioned that it was developing the 2nd phase of its layer farm which was expected to be completed by early 2015. This will double its daily capacity from 420,000 to 850,000 eggs.
Thus, even with lowish ROE at 6.5%, PW can be a dark horse with very low projected PE & PB ratio, along with satisfactory dividend yield.
Anyway, its tight balance sheet & cash flow remain a risk.
Furthermore, if the raw materials for chicken feeds are imported in USD, recent weakening of RM against USD might add more pressure if corn & soybean price also go up later.
Anyway, I think investors can still anticipate good financial results from poultry operators for year 2015 at least.