Excel – http://1drv.ms/O2EacY
– Fair values:
– 5-Y DCF – 3.38 – 3.78 (MOS: 15% – 24%)
– EY% – Buy below 2.70, sell above 3.62
– In my opinion, KMLOONG is just slightly above undervalued level.
– 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. Even in the ugly scenario, it still worth 2.69.
– 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.