Elite KSB Holdings

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#1
What do you people think about Elite KSB Holdings LTD?
It slaughters, processes and distributes chicken, pork, beef and lamb.

A few statistics:
P/E ratio: 4.9 [As of Today's (8 November 2010) closing price of $0.265]
P/B ratio: 1.19 [As of Today's (8 November 2010) closing price of $0.265]
ROE and ROA: About 27% and 14% respectively.
Yield: 5.7% [As of Today's (8 November 2010) closing price of $0.265]

Pretty good statistics, right?

Furthermore, it has achieved a very high annual earnings growth (about 40%, I think) over the past 5 years starting from 2005.

Even better, it seems to have a slight moat as it has about 25% of the market share in its industry. Also, the number of licenses awarded by the AVA for the operation of chicken slaughter-houses has declined to 10 at the present, from 13 in 1992. Another reason why new competitors are likely to come in even if they manage to acquire the required land from JTC and acquire a chicken slaughterhouse operating license from the AVA (which is unlikely) because the barriers to entry are very high as proper setup requires an extremely high seed capital.

Of course, there are some risks Elite KSB faces. For one, fluctuations in livestock prices affect group's bottom line. Prices of chickens are determined by the chicken farms supplying to Elite KSB, whereas prices of pork are largely influenced by exchange rate movements of the Australian dollar. Its business may also be affected by animal disease outbreaks, failure to offset cost increases to consumers, interrupted supply of raw material from Malaysia and Australia, etc. but all these are mostly temporary industry problems.

Finally, being what I feel as deeply undervalued, the enticing value statistics of the counter and the past performance track record of the company (profits have been rising consistently for the past 5 years - also shows that management is pretty competent) makes me feel that it is a good buy.

Discuss.
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#2
I have invested in the company. my main concern is how it can move from a closely held company (the family and friends own a majority of the company) to a more liquid stock. Also, how can it pass on rising costs to the super/hyper markets considering that they have a cartelistic grip in Singapore's small market.
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#3
Elite KSB reported 4.2% growth in 1H 11 shareholder's profit to $3.8 million. This gives rise to an annualized EPS of 5.66 SG cents.

http://info.sgx.com/webcoranncatth.nsf/V...300356587/$file/EliteKSB-HY2010_result.pdf?openelement

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#4
Share price up 10% and trading halt requested.

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#5
DISPOSAL OF THE ENTIRE ISSUED AND PAID-UP CAPITAL OF KSB DISTRIBUTION PTE LTD, JORDON INTERNATIONAL FOOD PROCESSING PTE LTD, SOONLY FOOD PROCESSING INDUSTRIES PTE LTD AND SAFA GOURMET FOOD PTE. LTD.

http://info.sgx.com/webcoranncatth.nsf/V...5005255B5/$file/Elite_Disposal-Announcement.pdf?openelement

Wow...congratulations to all vested !

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#6
(22-05-2012, 01:25 AM)Nick Wrote: DISPOSAL OF THE ENTIRE ISSUED AND PAID-UP CAPITAL OF KSB DISTRIBUTION PTE LTD, JORDON INTERNATIONAL FOOD PROCESSING PTE LTD, SOONLY FOOD PROCESSING INDUSTRIES PTE LTD AND SAFA GOURMET FOOD PTE. LTD.

http://info.sgx.com/webcoranncatth.nsf/V...5005255B5/$file/Elite_Disposal-Announcement.pdf?openelement

Wow...congratulations to all vested !

(Not Vested)

Purchase price of 62 Mils. BV is 20.6 Mils with Earning of 5.4 Mils.

So the purchase is with PB=3 and PE=12, It is a good price to sell.

I am yet to go into detail. Does it mean Elite KSB no more involve in core biz? Focus ONLY on China properties market?
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#7
Another great local business snatched from the grasp of public investors. At 10.5 times earnings, it can be argued to be a fair deal for both transacting parties.

Following the buyouts of Adampak, Meiban Group and now Elite KSB (and probably Neratel), I think investors can take heart that scouring the small-cap, undervalued universe can still be a profitable venture.

Question is... which one's next? Smile
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#8
(22-05-2012, 11:01 AM)CityFarmer Wrote:
(22-05-2012, 01:25 AM)Nick Wrote: DISPOSAL OF THE ENTIRE ISSUED AND PAID-UP CAPITAL OF KSB DISTRIBUTION PTE LTD, JORDON INTERNATIONAL FOOD PROCESSING PTE LTD, SOONLY FOOD PROCESSING INDUSTRIES PTE LTD AND SAFA GOURMET FOOD PTE. LTD.

http://info.sgx.com/webcoranncatth.nsf/V...5005255B5/$file/Elite_Disposal-Announcement.pdf?openelement

Wow...congratulations to all vested !

(Not Vested)

Purchase price of 62 Mils. BV is 20.6 Mils with Earning of 5.4 Mils.

So the purchase is with PB=3 and PE=12, It is a good price to sell.

I am yet to go into detail. Does it mean Elite KSB no more involve in core biz? Focus ONLY on China properties market?

I believe their china associates deal with animal feeds.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#9
(22-05-2012, 11:01 AM)CityFarmer Wrote: Focus ONLY on China properties market?

"The Disposal gives shareholders an opportunity to realise their investment in the Company in cash while continuing to have exposure to the Company's investments in China, the investment property and potential investment opportunities to be identified by the management team."

The 2 are separate.

1. The investments in China are the 4 associate companies carried at $6.8m.
Share of profit for FY11: $2.5m

2. The investment property is 2 Senoko Way. Earlier on, a buyer offered $12m for the property but the deal was rejected by the authorities for the intended use. It is now priced at $9.3m.
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#10
Can anyone tell me how minorities are going to benefit from the sale - is there any concrete proposal to distribute gains to shareholders?

Or will or the gains be channelled into new core business of property development in China?

If so won't it be better to invest in a company with good track in China properties given that there are many that trades at steep discount as well.

(22-05-2012, 11:08 AM)D123 Wrote: Another great local business snatched from the grasp of public investors. At 10.5 times earnings, it can be argued to be a fair deal for both transacting parties.

Following the buyouts of Adampak, Meiban Group and now Elite KSB (and probably Neratel), I think investors can take heart that scouring the small-cap, undervalued universe can still be a profitable venture.

Question is... which one's next? Smile
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