Cocoaland Holdings Berhad is an investment holding company which engaged in manufacturing and trading processed and preserved foods, fruits, and other related food stuffs primarily in Malaysia. The company also engages in the wholesale and retail of processed and preserved foods; and the manufacture of fruit juices. Its products include chocolates, cookies and wafer, nuts, candies and gummies, snacks and soft drinks and jellies. The company is based in Kuala Lumpur, is a subsidiary of Leverage Success Sdn. Bhd.
Based on past 5 years earning, we can see that company have a stable earning around 11-12sen per share since 2011. From the earning, we can see that company dividend payout ratio is around 50% where total dividend payout on 2013 is 6.5sen
Full year earning for 2014 fairly flat compare to 2013 which earning at 12.773sen per shares but dividend payout slightly increase to 7.5sen compare to 2013 6.5sen.
Q4 2014 posted a strong earning of 5.74sen compare to same year last quarter 4.64sen (23.7% increase).
In Q1 2014, company posted a weak earning of 1.99sen per share, where Q1 2015 result will anounce around May in 2015, this will result in an increase in company performance again.
From the chart above, share price started to go uptrending since last year December from low Rm1.40 till today Rm1.90. Consolidation of the share price is between 1.90-1.97 and it still stay above the uptrending line.
The above is one of the competitor OFI (Oriental Food Industries Hldg) , the company share price has surge from around Rm3.00 to Rm4.22(historical high) after posted a 50% increased in the last quarter result.
Cocolnd will announce Q1 2015 result around May, compare to last year Q1 weak result, will see a very good earning increase and AmeSecurities estimates a 10% earning increase in FY2015 and upgraded from HOLD to BUY with fair value of Rm2.15.
RHB also upgrade F&B player to overweight due to its decent yield and volume growth.
Collect during connsolidation period before it move to next level!
Medium Target Price: Rm2.19
Happy Trading!
Regards,
Nick Loke
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