LTKM (7085) - The Undervalue GEM Poultry Farm (LTK Omega Plus) (Target price - RM 5)

Current Price - RM2.98

Target Price - RM5.00

Upside - RM2.02 (67%)

Quarter result FY2014

Q1 : 13.97cents Q2 : 11.85cents Q3 : 13.16cents Q4 : 12cents (estimated) Total estimated EPS:50cents

PE: 6 (inclusive estimated Q4 result)

Dividend

FY 2013 4cents (Interim dividend) + 8cents (final dividend)

FY 2014 8cents (Interim dividend) + 8cents (final dividend - estimated)

Dividend yield: 5% (inclusive estimated final dividend)

Overview:

Main product - LTK Omega + LTK Organic Selenium Plus (Egg)

LTKM berhad, an investment holdings company, operates poultry farms in Malaysia. It is engaged in chickens and organic fertilizers. It is also engaged in extraction and trading of sand. 

As per figures shows about, the PE ratio is only 6 and the dividend yield for this company is 5%. The company's EPS have been stablely stood at 11 to 14sen eps per quarter for the last 4 quarter. Hence, the estimated Q4 2014 will be 12cents.

With a great EPS (50sen) and a good dividend payout for the company (16sen), I think it is a undervalue company for branded egg company such as LTK to only stand at PE6.

Buy at your own risk

by pingdan