KMLOONG–Fundamental Analysis (28 Mar 2014)

KMLOONG Analysis:-

Excel – http://1drv.ms/O2EacY

My View:-

– Fair values:
  – 5-Y DCF – 3.47 – 3.87
    – Buy under: 2.84 – 3.16 (MOS: 21% – 29%)
  – EY% – Buy below 2.47, sell above 3.31
  – In my opinion, 3.4 – 3.8 is fair value range for KMLOONG. KMLOONG is currently undervalued.
– The CPO price moves in a cyclical manner. In a worst case scenario, KMLOONG, a net cash company with a low cost of production and an experienced management team would be able to withstand the turbulence and even take up expansion opportunities.
– Going forward, I expect KMLOONG to perform better in FY15 as it plans to improve production, while benefiting from favourable palm oil prices.
– Recently, I have purchased KMLOONG at 2.8, and then 2.74.

Latest Financial – Q4 2014 Financial Report (27 Mar 2013) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1577605

At the time of writing, I owned shares of KMLOONG.

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