KMLOONG – Fundamental Analysis (20 Jul 2014)

KMLOONG Analysis:-

Excel –

My View:-

– 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)

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


4 thoughts on “KMLOONG – Fundamental Analysis (20 Jul 2014)

  1. Chong, you moved KM loong to your watch list. Does that mean you disposed? The price now seems very right, close to ugly scenario of 2.69. However CPO is down now,should one wait for a bigger correction or do you see this as an attractive enough price?


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