Do you believe chickens can fly?
Teo Seng announced its results yesterday.
Revenue was up 24.5% year over year and profit was up 35%.
Profit margin rose to 11%.
What does this all mean?
It means that average selling prices (chicken and egg prices) are up! And feed costs (soybean, corn) are down!
This also means that the whole sector is at a sweet spot!
But which stock to pick?
Teoseng is up 29%! CAB is up 23% already! Layhong is up 20%!
PWF Consolidated is only up 17%, meaning alot more room to catch up!
And remember PWF has invested heavily in new capacity in 2017-2018.
This means not only will they benefit from higher ASP and lower cost, but much higher VOLUME!
With capex cycle over, expect better dividends going forward! Remeber that they are one of the most generous dividend payers!
Over the last 5 years (from 2014), PWF's share price has gone up from RM0.15 to RM0.87 (last closing).
This kind of performance over 5 years can only be achieved through good management who places shareholders' interest as a priority.
This is not a fly by night, pump and dump company!
If you invested 5 years ago, you would have bagged 5.8x ur initial investment, meaning RM200k is now RM1.16m!
Don't miss out guys.