QL – Fundamental Analysis (9 Mar 2015)

QL Analysis:-

Excel – http://1drv.ms/1Gi3hOr

Notes – http://tinyurl.com/nzskxef

My View:-

  • Valuation:
    • Absolute EY%:
      • Trailing:
        • FY14 (EPS: 0.138) – Fair value 2.85 (Fair Value Uncertainty: VERY HIGH)
        • R4Q (EPS: 0.148) – Fair value 3.05 (Fair Value Uncertainty: VERY HIGH)
      • Forward:
        • FY16 (EPS: 0.174) – Fair value 3.59 (Fair Value Uncertainty: HIGH)
        • FY17 (EPS: 0.193) – Fair value 3.99 (Fair Value Uncertainty: HIGH)
      • EPS applied to reach the current stock price (3.75): 0.182
  • QL establishing its marine segment with new capacities and diversification into new aqua business such as prawn farming, in view of better surimi prices.
  • On the downside, risk relating to CPO price remains a threat and growing palm oil acreage in Indonesia could help lessen this, going forward.
  • Outlook on ILF segment may not positive due to the high raw material feed cost.
  • Valuation of QL is not attractive.

Latest Financial – Q3 2015 Financial Report (26 Feb 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1886069

At the time of writing, I did not own shares of QL.

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