@CharlesT in total yes the entire industry will be making the same but the smaller scale players will be eaten up by the bigger scale players. Thats why these listed big boys profit has been trending up despite the price control
Subsidy is about RM200m per month. With or without price cap all the big boys have been showing all time high profits with such a massive amount of subsidises. The latest new is actually bullish for big poultry players.
actually whole industry is undervalued. PWF ,CCK just announced their highest dividend ever LHI just resumed its dividend payout CAB announced free warrants LTKM privatized SinMah divested its poultry business
@GorengWatch yes freefloat is very low. @raymondlim poultry is unpopular among funds/ retailers and tightly controlled by insiders (sadly most of them are farmers who dont quite understand how financial market works) also its a low margin cyclical industry. profit cycle moves up and down rapidly. risk premium is huge. invest at your own risk.
@raymondlim i am looking at 100-120m this year. Subsidies + price cap is actually good for big broilers players ( not layers ). market share has been increasing a lot in the past 2 years. now the GP stocks are in huge shortage due to bird flu- expect the DOC price to remain high in the near future. Those who control the GP stocks farming will make huge profits in the next 2-3 quarters
DOC price has come down a little due to weak demand after 45 days - post ramadan effects. but the profit expected to be good in the next few quarters. dont forget the free float policy after june ( state elections to be precise ).
@supersaiyan3 IMO all these veterans (regardless any industry) always have their own biased views (tend to be overly bearish) towards the industry. i had talked to FLFAM insiders , some private and public listed companies in the past 2 years i will say 99% of them are extremely bearish towards poultry industry but the result speaks otherwise.