Excel – http://1drv.ms/1mtkLf8
– Fair values:
– 5-Y DCF – 3.36 – 3.76 (MOS: 11% – 20%)
– Absolute EY%
– FY14 (EPS: 0.198): Buy below 2.11, sell above 2.47
– R4Q (EPS: 0.245): Buy below 2.60, sell above 3.05
– FY15 (EPS: 0.28): Buy below 2.98, sell above 3.49
– 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 senario, 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.
– I will continue to hold KMLOONG, and may accumulate when possible.
Latest Financial – Annual Report 2014 (3 Jul 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1675201
At the time of writing, I owned shares of KMLOONG.