reports
- Jiten Bechoo
- Pratish Soni
Astral Foods | Praying for rain
High maize prices and a decline of selling prices reduced Astral Foods' (ARL) poultry margins to 3% from a record of 14% last year. FY '19 diluted HEPS fell y/y by 55%. The impact of high maize prices will linger into H1 '20 given ARL's forward procurement. However, there will be some support to margins from improving selling prices. A return of seasonal rains over the summer should boost crop prospects and lead to a drop of input costs for ARL from H2 ‘20. A public/private chicken master...
1 director sold
A director at Astral Foods sold 2,000 shares at 180.130ZAR and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly sh...
- Jiten Bechoo
- Pratish Soni
Astral Food | A watershed moment
Astral Foods' H1 '19 diluted HEPS decline of 52% y/y marks the start of a cyclical downturn of poultry profitability. We believe profitability will continue declining for the next six months. Rising input costs and lower prices are pressuring poultry margins from a record level of c.14% in FY '18.
- Jiten Bechoo
- Pratish Soni
Astral Foods | Farming birds right
Astral Foods (ARL) released strong FY '18 results with diluted HEPS up 94% yoy to 1 972cps. The poultry division made a profit of R835m, compared to R22m last year, with a combination of lower costs and higher selling prices. Maize costs are rising into 2018/2019 while poultry prices are in decline. Rising imports and local production have led to a domestic surplus. Competition from cheap pork post Listeriosis is also a threat. ARL are efficient poultry producers, but the current record hig...
- Jiten Bechoo
Astral Foods | Price pressure
Astral Foods (ARL) released strong H1 '18 results with diluted HEPS up 456% yoy to 1 972cps. The poultry division made a profit of R835m, compared to R22m last year, with a combination of lower costs and higher selling prices. Maize costs will stay low into 2018/19. However, poultry prices will come under pressure. Rising imports and local production pose a risk to the local market balance. Competition from cheap pork is also a threat. ARL are increasingly efficient poultry producers, but ...
- Victor Dima
Astral Foods (Sell, TP ZAR 130/share) - H1 17A result review: Higher E...
ARL reported H1 17A sales at ZAR 5.8bn, slightly below y/y and 4% below ACe (ZAR 6.0bn), driven by very weak volumes in poultry (-10.5% y/y vs. -2.5% ACe) after reduction in IQF brining limits to 15%. EBIT decreased 51% y/y to ZAR 212mn, 8% above ACe (ZAR 196m). Astral’s increased poultry selling prices by c. 11%, aiding the Poultry division to post slight operating profit (+0.5% margin vs. -1% expected), driving a 4% HEPS beat. Overall, the results look neutral given Astral was able to pass ...
- Victor Dima
Astral Foods (Sell, TP ZAR 130/share) - H1 17e HEPS guidance revised u...
We increase our FY 17e HEPS by 20% post yesterday’s trading update with revised H1 17e HEPS guidance. We make no changes to FY 18e/19e estimates. Our TP increases by 7% to ZAR 130/share (from ZAR 122/share). We maintain SELL. ARL expects H1 17e HEPS to be between ZAR 3.10/share to ZAR 3.87/share (H1 16A: ZAR 7.74/share) i.e. 50%-60% below y/y vs. earlier guidance of at-least ZAR 1.94/share (-75% y/y). HEPS upward revision is driven by better Q2 17e performance with planned poultry cutbacks an...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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