1. 1Q13 earnings jump 137% YoY. Yee Lee (Stock Code: YEELEE, 5584) 1Q13 earnings jumped 137% YoY to RM8.35m on the back of better margin on its olein (cooking oil) products as CPO prices become lower YoY.
2. Turnaround in Trading division. The Company's Trading division also registered better profit margin coupled with lower advertisement and promotion expenses in this quarter.
3. Beneficiary of low CPO prices. Yee Lee sells olein (cooking oil) in which the price is more or less does not change much. But the input CPO price is 25% down YoY. This explains why its margin in Manufacturing division increase so much.
4. Share price to hit RM1.50 soon? Its FY13 EPS is expected to hit 16.4 sen or 31% jump YoY due to better margin in olein manufacturing and also good turnaround seen in Trading division. Using conservative 9x PE to value this stock, it is easily worth RM1.48.
This blog is related to observations regarding stocks traded in Malaysia. Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
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