Teo Seng Capital Berhad

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$TEOSENG / 7252 (TEO SENG CAPITAL BERHAD)

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*🥚 Teo Seng Capital 4QFY24 Result Updates 🥚*

♦️ *4Q Performance (YoY & QoQ)*
Revenue: RM188.4m (-5.7% YoY, -1.0% QoQ) 📉
PAT: RM64.9m (-3.0% YoY, +11.8% QoQ) 🚀 ASP declined QoQ
PAT Margin: 34.4% (vs 30.5% in 3QFY24) 📈 higher sales volume & stable feed cost supported earnings
♦️ *Full Year FY24 vs FY23*
Revenue: RM753.8m (-0.9% YoY)
PAT: RM183.4m (+17.7% YoY) 💰
Exceeded our FY24 forecasted profit of RM175m by 5%
Strong balance sheet: First time becoming a net cash company since listing
♦️ *Growth Catalysts in 2025*
Downstream egg products performing well, targeted for profit improvement (but contribution to group revenue still insignificant)
Slaughtering Plant to commence operations in Jul'2025 - savings of PBT MYR4m per year
More new downstream egg-related products launching
Targeting 4.8m eggs daily production in 2025 (+7% YoY)
♦️ *Egg Industry Dynamics*
Egg industry operates in either free float market OR government intervention (price ceiling control (-) & subsidy (+))
Latest update (mid-June 2024):
🔹 Price ceiling lowered by 3 sen
🔹 Subsidy remains at 10 sen per egg
🔹 No further updates on policy changes yet
With major festivals in 1H25, management expects no policy changes until June 2025
No default payment from the government for eggs sold in the past
Yet to receive subsidies from Jan 2025 onwards, but monthly subsidy collection would range RM9-10m
♦️ *Structural Industry & Company Changes*
Industry Consolidation:
🔹 Top 5 egg producers' market share grew from 39% (2017) to >60% now → Less price competition if market is free float
Teo Seng Transformation:
🔹 Indirect sales down from 72% (2020) to <37% (2024) with new distribution centres
🔹 Saves 3 sen margin per egg for the Group - bypassing distributors
♦️ *Valuation & Market View*
With strong FY24 earnings & continued subsidy, Teo Seng is likely to maintain PAT >RM183m in FY25
TTM & FY25F P/E: only 3.5x – highly undervalued given strong earnings visibility
A steal for fundamental investors with positive structural shifts in both industry & company
♦️ *Technical View*
Stock approaching SMA200, a key support level 📊
Bullish case: If it rebounds with higher volume & breaks key resistance (MYR1.23 & MYR1.33) → Long-term uptrend remains intact ✅
Bearish case: If it breaks below RM1 with high volume, could signal a temporary downtrend/consolidation ❌
💡 Teo Seng remains fundamentally strong with a bright outlook, but investors should monitor technical signals closely! 🚀

PETALING JAYA: Teo Seng Capital Bhd is expected to sustain strong earnings through cost efficiencies and steady demand driven by population growth and tourism going forward.

$TEOSENG / 7252 (TEO SENG CAPITAL BERHAD)
Research by RHB

🚀 BUDGET 2025 MALAYSIA THEME STOCKS 🚀



💥 Pre-Rally Alert 💥: Stocks to watch in anticipation of Budget 2025 on 18 Oct 2024:

1️⃣ Infrastructure 🏗
Transportation Projects → MRT 3, Penang LRT 🚆
Water Infrastructure → Pipe replacements, filtration, flood control 💧
Key Stocks: SUNCON, GAMUDA, IJM, RESINTC, ENGTEX, MCEMENT

2️⃣ Sarawak 🌴
More Allocations → Infrastructure and energy projects in Sarawak 🌱
Renewable Energy → Focus on East Malaysia's green projects ♻️
Key Stocks: IBRACO, PANSAR, CMSB, AFFIN

3️⃣ Johor 🏙
Tax Incentives → Johor-Singapore Special Economic Zone and Special Financial Zone 🏭
First-Time Homebuyer Discounts 🏡
Key Stocks: UEMS, IOIPG, KSL, CRESNDO

4️⃣ Cybersecurity 🔒
Cybersecurity initiatives → More funding and subsidies for cybersecurity measures.🖥
Key Stocks: LGMS, CLOUDPT, INFOTEC

5️⃣ Food 🍗
Subsidy Removals → potential removal of egg and sugar price subsidies and ceiling prices 🍳
Tax Hike → Sugar-sweetened beverage taxes 🥤
Key Stocks: TEOSENG, PWF, MSM

6️⃣ Palm Oil 🌴
Windfall Tax Cut → Likely increase in threshold 📉
Key Stocks: SOP, TAANN, JTIASA

7️⃣ Electronic Invoices 🧾
Phased Rollout → eInvoice for businesses 💼
Key Stocks: ADB, PANDA, IFCAMSC

8️⃣ Renewable Energy 🌞
Growth in Renewables → LSS5, Floating solar, EV charging 🌱
Key Stocks: SLVEST, SAMAIDEN, SCGBHD

9️⃣ Tech & Manufacturing 💻
Incentives for High-End Manufacturing → Semiconductor industry growth 🔧
Key Stocks: KGB, AME, INARI, MPI

$IBRACO / 5084 (IBRACO BERHAD) $SCGBHD / 0225 (SOUTHERN CABLE GROUP BERHAD) $JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) $TEOSENG / 7252 (TEO SENG CAPITAL BERHAD) $UEMS / 5148 (UEM SUNRISE BERHAD)

M+ TOP PICKS OCT 2024

Wall Street may see positive momentum driven by the booming AI sector and the Fed’s dovish stance, with a rate cut cycle likely in the near term. On the other hand, the Bursa exchange will depend on the movement of the ringgit to determine its future trend.

We believe strong FDIs, positive foreign inflows into the equity market, rising data center developments, and the ongoing NETR and NIMP blueprints will support Malaysia’s economic growth. As a result, we favour stocks in the Construction, Building Materials, Property, Utilities, Technology, and Oil & Gas sectors.

Besides, we like Consumer and Industrial Products sectors, especially in a strong ringgit environment.

$99SMART / 5326 (99 SPEED MART RETAIL HOLDINGS BERHAD) $LHI / 6633 (LEONG HUP INTERNATIONAL BERHAD) $TEOSENG / 7252 (TEO SENG CAPITAL BERHAD) $SENFONG / 5308 (SENG FONG HOLDINGS BERHAD) $AGX / 0299 (AGX GROUP BERHAD)

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR NA HAP CHENG

General Meetings: Outcome of Meeting

TEOSENG - Notice of Book Closure

PETALING JAYA: Teo Seng Capital Bhd expects better productivity for 2024 and expects its financial performance for the remainder of the year to remain satisfactory.

First Interim Dividend

OTHERSTEO SENG CAPITAL BERHAD ("TEOSENG") PRESS RELEASE: MODERATE GROWTH OF REVENUE AND SURGED IN PRE-TAX PROFIT FOR FIRST QUARTER ENDED 31 MARCH 2024 (Q1FY24 vs Q1FY23)

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

$TEOSENG / 7252 (TEO SENG CAPITAL BERHAD)

PETALING JAYA: Teo Seng Capital Bhd is acquiring eight parcels of land measuring 104.87 acres at Yong Peng, Johor, from Lim Kim Yam & Sons Sdn Bhd and Lim Thiam Hooi for RM23.6mil.

PETALING JAYA: Teo Seng Capital Bhd is acquiring eight parcels of land measuring 104.87 acres of land at Yong Peng, Johor, from Lim Kim Yam & Sons Sdn Bhd and Lim Thiam Hooi for RM23.6mil.

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSTEO SENG CAPITAL BERHAD ("TEO SENG" OR "COMPANY") -
ACQUIRED APPROXIMATELY 104.87 ACRES OF AGRICULTURE LAND AT PURCHASE PRICE OF RM23,596,222.50 FOR LAYER FARMING EXPANSION PROJECT BY TEO SENG FARMING SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY

Part A: Proposed Renewal of Existing Shareholders' Mandate for Recurrent Related Party Transactions of A Revenue or Trading Nature Part B: Proposed Renewal of Authority for Share Buy-back

Annual Report & CG Report - 2023

General Meetings: Notice of Meeting

Notice of Sale or Cancellation of Treasury Shares (Section 127 of CA 2016) (Amended Announcement)

Annual Audited Accounts - 31 Dec 2023

OTHERSTEO SENG CAPITAL BERHAD ("Teo Seng" or "the Company")
- Proposed Renewal of Existing Shareholders' Mandate For Recurrent Related Party Transactions of A Revenue Or Trading Nature ("Proposed Renewal of Existing Shareholders' Mandate")
- Proposed Renewal of Authority For Share Buy-Back

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEONG HUP INTERNATIONAL BERHAD

Notice of Sale or Cancellation of Treasury Shares (Section 127 of CA 2016)

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMERGING GLORY SDN BHD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - CW LAU & SONS SDN BHD

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - MR NAM HIOKJOO

Changes in Director's Interest (Section 219 of CA 2016) - MR LAU JUI PENG

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR LAU JUI PENG