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Comparison of 3 companies in the same business, namely Teo Seng, Lay Hong and Leong Hup

Teo Seng’s last 4 quarterly EPS 7.37, 5.76. 2.34 & -0/18 sen. Total for 4 quarters is 15.29sen. Last closing price Rm 1.22, P/E 7.9

Lay Hong’s last 4 quarterly EPS 1.81, 0.57, – 1.70 & 0.34. Total for 4 quarters is 1.08 sen. Last closing price 43.5 sen, P/E 40

Leong Hup’s last quarterly EPS 1.78. IPO price was Rm 1.10 in April 2019. Last closing price 94 sen

Comparing the latest quarterly EPS for each of the 3 companies should be the best way of evaluation. Teo Seng 7.37, Lay Hong 1.81 and Leong Hup 1.78 sen.

Conclusion:

Teo Seng is the best in terms of profit growth prospect which is the most powerful catalyst to move share price. Moreover, it is selling at P/E 7.9.

Lay Hong is selling at P/E 40.

TEO SENG CAPITAL BERHAD

Review of Performance of the Company and its principal subsidiaries

The Group reported a higher revenue of RM150.5 million in the first quarter, which is 30.8% higher than revenue in the first quarter of 2018. Correspondingly, a pre-tax profit of RM29.2 million was achieved in the first quarter, an increase of 239.7% as compared to the first quarter of 2018. Poultry Farming The increase of 35.1% in revenue to RM135.8 million recorded in the current quarter was primarily contributed from continued stable selling price of eggs coupled with the improved production efficiency. In line with the improvement in revenue, poultry segment recorded an impressive profit before tax of RM28.7million in the current quarter under review. Investment and Trading Despite the stable revenue, profit before tax reduced by 65.1% to RM0.5 million mainly due to the higher operating expenses.

Comparison with Immediately Preceding Quarter’s Results

The Group reported a higher revenue of RM150.5 million as compared to RM 147.2 million in the immediately preceding quarter mainly contributed from continued stable selling price of eggs and higher sales volume of eggs. The Group’s profit before tax surged to RM22.1 million for current quarter under review, representing growth of 27.9% from RM17.3 million reported in the immediately preceding quarter due to the above-mentioned contributors as well as improved production efficiency.

Current Year Prospects:

In view of the current stable supply of eggs and feed cost, the Directors are optimistic about the financial performance of the Group for the remaining 9 months period ending 31 December 2019.

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