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  • Sector - Poultry

    Attached is the Trailing Earnings related to the 3 poultry stocks.
    Also the TTM PER.

    All 3 companies trading at similar PER multiple.

    In-terms of BV, all 3 trading below its Book Value.
    Click image for larger version

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    Debt To Equity, 5Year ROEs and Dividend yield could be considered in case you plan to invest in one of them. However i would recommend to own all 3 spreading your Risk.
    All three shares should in my opinion trade much higher compared to overall CSE 11 PER as of now.
    Its at a relative discount to the market in my opinion.
    "The best values today are often found in the stocks that were once hot and have since gone cold"

  • #2
    I have not considered CIC as presently the company is in loss situation.
    "The best values today are often found in the stocks that were once hot and have since gone cold"

    Comment


    • #3
      The increase of TAX to 14% from 10% (thats a 40% increase) has been challenging effective 01.04.2018
      Addressing Cost of Production matter, need swift remedies by the State. Streamlining Maize import when local supplies run shortage.
      BFL - emphasize that selling price of chicken is still controlled ? despite what we know that its removed.
      Tax is still reasonable in my opinion, provided State can relax the Maize Import procedure. And handover direct to the importers without middleman. So BFL GRAN and other producers can directly import.
      GRAN talks of lifting restrictions on Land Alienation Act should be a positive move for them.
      GRAN has introduced new product in the cattle feed range and poultry feed.
      Acquisition of poultry processing plant was concluded during the year by GRAN, that should improve operational efficiencies.
      BFL managed to maintain good quality feed, whilst GRAN complains acquiring quality feed remain a challenge at fair market prices.

      Overall i am positive that GOSL will gradually address these concerns.
      "The best values today are often found in the stocks that were once hot and have since gone cold"

      Comment


      • #4
        Let me add.

        GRAN/TAFL The increase of corporate tax rate from 12 % to 28 % which is applicable to feed millers, will have an extra burden on the Company’s income tax liability from 2018 onwards. ( Annual Report )
        Chicken remain as a listed essential item by the CAA. Producers have to write and get approval before they increase prices. Major delays are seen here.
        As most Raw Materials are imported, Devaluation has a direct negative impact on COP.
        Sourcing of quality raw material at fair market prices remain challenging for the industry. It is important that permits be more forthcoming to import Maize to overcome the shortfall in the quality and quantity of Maize in the country. Extreme weather is now an ongoing challenge to the agriculture sector as it destroys infrastructure as well as Maize crops. ( Annual Report )

        Import restrictions on Grandparent and Parent Stock due to AI constraints in the industry’s traditional supplier markets delayed the placement of DOCs. (Annual Report)

        A dearth of skilled labour is another constraint the industry suffers from, as wage rates increase across the sector.(Annual Report)

        Poor investor relations. Everybody complains about this.

        Low risk appetite of management, primary driven by reward structure.
        Poor Management talent acquisition, due to ownership structure.
        These two elements have made the company to be more short term tactical, while long term strategic growth is neglected. Thus the conclusion would be that the trigger for next phase of growth would have to be external rather than internal.


        Comment


        • #5
          If members had been able to follow our poultry threads GRAN,TAF and BFL, and the Sector node, we should have got a understanding of their bottoms. GRAN60 BFL120. Great going thus far, looking at the valuations and optimistically the future potential this sector has, we can not deny how much return this will give in the future. Most shares trading below their book values... hmm
          not very realistic.
          What does it say for companies with such potential trading below book values.

          contrarians will accumulate and keep them for long as necessary until market reflect the value.
          "The best values today are often found in the stocks that were once hot and have since gone cold"

          Comment


          • #6
            Thank you Shark........
            Live Today........
            Without compromising your ability to Live Tomorrow………

            Comment


            • #7
              BFL is included in the F&B, Hmmm as if one is to categorise it over the Consumer Staples, then this highly undervalued in terms of Low PE under 5. Price to CF positive 14. Price to Free CF 9. Gross Margins 5YA 22% with TTM 24%. Price to BV is tad higher half the BV, in other words 0.60
              ROE TTM 14% whilst 5YA is 16%
              EPS 5YA growth is 20%
              Long Term Debt 9.5% and Total Debt to Equity is 14%
              Dividend yield is 5% with payout 21%

              NOW who stands taller is it SOY or BFL ?

              BFL should be considered a super cool safer share, that hasnt shown its full power.

              Come on! Market.....Lets bring the BFL PER towards 8-10 levels.
              "The best values today are often found in the stocks that were once hot and have since gone cold"

              Comment


              • #8
                All 3 Poultry stocks show GAINs, last few days. This could be attributable to Low PER, Low Debts and Decent DY.
                GRAN - P/FCF 4
                PER - 4 (TTM)
                PBV - 0.6
                ROE 5YA - 18%
                EPS 5YA - 43%
                Divd Payout - 13%

                BFL P/FCF 8.5
                PER - 4 (TTM)
                PBV - 0.6
                ROE 5YA - 16%
                EPS 5YA - 20%
                Divd Payout - 21%

                TAF P/FCF 3
                PER - 4 (TTM)
                PBV - 0.8
                ROE 5YA - 30%
                ​​​​​​​EPS 5YA - 79%
                Divd Payout - 11%
                "The best values today are often found in the stocks that were once hot and have since gone cold"

                Comment


                • #9
                  European Eggs have been BANNED, Does it mean our Local companies with Exports reach will have more demands for their products... Good news as there will be a supply shocks especially in the middle eastern countries. Its time our companies take to next level. heard last year GRAN was into Exports.

                  Updated
                  Ban has been lifted in the Middle East - Actually the countries affected were Italy and Bulgaria - Should not mislead as entire Europe.
                  "The best values today are often found in the stocks that were once hot and have since gone cold"

                  Comment


                  • #10
                    Two issues, Cost and the second quality, which would would mean yolk colour, size, weight, consistency of size etc. Cost would include not only the cost of the eggs but packing as well.

                    What GRAN exports from time to time is Hatchable Eggs of Parent Stock.

                    Comment


                    • #11
                      http://www.ambtarsus.com/lankalivest...IVESTOCK_NLDB/
                      LANKALIVESTOCK 2019: TOP INTERNATIONAL BRANDS SIGNED UP FOR SRI LANKA'S NO.1 FEED & LIVESTOCK EXHIBITION
                      The 2nd edition of LANKALIVESTOCK exhibition which will be held from 17 to 19 January 2019 at the SLECC, Colombo looks set for another record breaking event with major international industry players booking their booths to take advantage of the “Early Bird” Offer. Many of the exhibitors are returning after the first successful launch in 2017. The Sri Lanka market has enjoyed steady growth with poultry production registering an average of 8% over the past 5 years. With the recent lifting of restrictions for maize import to meet increasing feed demand, this sector is expected to chalk up strong growth in 2018.

                      If you want to see your business grow in Sri Lanka, join these market leaders at LANKALIVESTOCK 2019.
                      http://www.ambtarsus.com/lankalivest...ESTOCK_BIOMIN/

                      BIOMIN JOINS LANKALIVESTOCK 2019 EXPO AS GOLD SPONSOR

                      BIOMIN is all set to take part in LANKALIVESTOCK 2019 - Sri Lanka’s No 1 International Feed & Livestock Production Exhibition as Gold Sponsor. The business-to-business Expo will take place from 17th-19th January 2019 at SLECC in Colombo, Sri Lanka.

                      BIOMIN is currently one of the leading brands in the feed additive sector in Sri Lanka. The company aims to provide solutions in healthy animal nutrition. BIOMIN strives to meet dietary requirements for poultry, swine, aquaculture, and dairy and beef cattle. Its product portfolio includes Mycofix, PoultryStar, Biotronic, AquaStar and Digestarom. In Sri Lanka, Biomin is represented by JK Tradelink (Pvt) Ltd, a leading importer and distributor of industrial raw materials and ingredients.

                      Biomin will be sharing its range of products at LANKALIVESTOCK 2019, the biggest business-to-business platform where integrators, farmers, feed millers, technicians, veterinarians, consultants, meat and egg processors, importers, distributors and dealers can gain new insights, source for new supplies, learn directly from international experts in the industry and get updated on the latest issues and developments to improve their production and yield.

                      Over 150 international and local companies and brands from 15 countries including Malaysia, USA, Italy, Turkey, Singapore, Germany, China, and Thailand are expected to feature at the event.
                      Last edited by MrGrowth; 10-14-2018, 07:20 AM.

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