Risk factor
Poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Leong Hup International Berhad is a prominent agribusiness conglomerate focused on the production and distribution of poultry, eggs, and livestock feed throughout Malaysia, Singapore, Indonesia, Vietnam, and the Philippines. The company's operations are segmented into two primary areas. Its Livestock and Poultry division encompasses a comprehensive range of products, from day-old chicks and broiler chickens to eggs, animal health solutions, and consumer-ready food items. This segment also manufactures and sells processed food products like sausages, frankfurters, nuggets, and various frozen meats under popular brands such as Ayam A1, SunnyGold, SAFA, Ciki Wiki, and Sobat. Furthermore, it manages quick-service restaurants, including The Baker's Cottage in Malaysia and LH Deli in the Philippines, which specialize in ready-to-eat poultry and pastry offerings. The Feedmill segment is dedicated to the manufacturing and commercialization of animal feeds, catering to a diverse clientele that includes grandparent and parent stock, broiler and layer chickens, ducks, swine, quail, cattle, goats, aquatic species, and domestic pets. Key brands within this segment include Leong Hup, Malindo, Gymtech, Diamond Feed, Emivest, A88, and Top Spec. Beyond these core activities, Leong Hup International provides a broad spectrum of services. These include farming and management expertise; the breeding, rearing, fattening, and processing (including slaughtering) of fresh and frozen poultry, duck, and various meat stocks; and a range of financial and investment advisory services. The company also operates bakeries and cafeterias, retails confectionery, trades in animal feeds and veterinary products, distributes pharmaceuticals, offers training and consultancy, and provides essential warehousing and transportation logistics. Its diverse interests extend to aquaculture production, coconut and pineapple cultivation, the manufacturing and marketing of feed additive premixes, and the rental of chicken coops. Established in 1978 and headquartered in Kuala Lumpur, Malaysia, Leong Hup International Berhad functions as a subsidiary of Emerging Glory Sdn Bhd.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD
Target Price
The average target price of 6633.KL is 1.1 and suggests 40.9% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in