PLABS (0171) - The animal specialist
Market Listing: ACE
Syariah status: No
Closing Price: 0.195
Expected TP: 0.22/0.25/0.28
Company Background
Peterlabs Holdings Bhd is a Malaysia based company engaged in manufacturing, distribution, and trading of animal health and nutrition products. It also provides solutions like farm management, technical advisory services, raw material analysis and feed formulation. The operating segments of the group are Manufacturing which relates to manufacturing of animal health and nutrition products, and Trading which relates to trading and distribution of animal health and nutrition products. It offers products like animal feed additives, veterinary pharmaceuticals, injectable products, multi-nutrient and supplement, topical dressings, cleansing agents, and other related products. The company operates in Malaysia and internationally, and generates key revenue from the Trading segment.
Why PLABS?
1. Plabs is one of the leading specialists in manufacturing, distribution and trading of animal health and nutrition products. Our Group products include animal feed additives, environment maintenance products, veterinary pharmaceuticals, biologicals, anthelmintic, antimicrobial, disinfectant, injectable products, mold inhibitor and toxin binder, multi-nutrient and supplement, complete feed premix, pre-probiotic / enzyme / acidifier, topical dressings and cleansing agents.
Source: http://www.peterlabs.com.my/
2. Recently there was a news relating to a poultry farm at Pedas, Negeri Sembilan in which there was an outbreak of Covid-19 among its workers.
https://www.freemalaysiatoday.com/category/nation/2020/05/11/tesco-stops-sourcing-chicken-from-factory-with-covid-19-outbreak/
3. With the recent news in place it’s logical that poultry players will start to be more careful with their poultry farms because by having a safe and healthy farm it will boost the confidence of customers like Tesco and other major supermarket players.
4. Government will definitely emphasize a stringent requirement for poultry players on their workers and also on their animals in order to prevent COVID-19 being spread.
5. So how does PLABS come into the fray?
Source: http://www.peterlabs.com.my/product-catalog/
As we can see PLABS has quite number of animal related products
So what is interesting about PLABS is they offer disinfectant and vaccine for animals.
This is definitely an important product for poultry players because disinfectant is very important to keep the poultry farm safe from COVID 19 infection.
Source: http://www.peterlabs.com.my/product/multiguard-l-a/
Vaccination is also important to poultry farms in order to keep their chickens safe & sound from viruses. Plabs offers multiple types of vaccination as this is another key point to take note.
Source: http://www.peterlabs.com.my/live-vaccine/
6. Guidelines from Poultry World website on how hatcheries should be kept safe during this Covid-19 crisis which has DISINFECTANT on their guidelines.
Source: https://www.poultryworld.net/Health/Partner/2020/5/Keeping-hatcheries-safe-during-the-Covid-19-crisis-578678E/
Fundamental Analysis
Very high Fair Value at RM 3.82 based on Simply Wallst website
Strong earnings as it grew 12.6% over the past year
Single digit PE ratio of 8.8 compared with the industry PE of 13.3
Source: https://simplywall.st/stocks/my/pharmaceuticals-biotech/klse-plabs/peterlabs-holdings-berhad-shares
Technical Analysis
PLABS closed at resistance 0.195 with strong volume today showing that the enthusiasm of the traders are there. Monitor for breakout if can break 0.195 thne heading to the next resistance 0.21 before going towards 0.235. Support seen at 0.175.
MACD & RSI shows bullish bias.
Conclusion
PLABS is definitely one of the major beneficiaries coming to poultry safety because poultry players would not want to damage their reputation with the market as they keen to recoup their losses during the Movement Control Order (MCO) as most business are allowed to open during this Conditional Movement Control Order (CMCO) including restaurants.
With a proper safety at the poultry farms this will boost the confidence of their customers to purchase their chickens.
Disclaimer: The above opinion is never intended to be a BUY CALL whatsoever. I am sharing my observations ONLY based on fundamental; past history; current trading pattern; charts etc. Please make your own informed decision before buying this share or whatever share for that matter.
https://klse.i3investor.com/blogs/Innothestar/2020-05-27-story-h1507865504-PLABS_0171_The_animal_specialist.jsp
Market Listing: ACE
Syariah status: No
Closing Price: 0.195
Expected TP: 0.22/0.25/0.28
Company Background
Peterlabs Holdings Bhd is a Malaysia based company engaged in manufacturing, distribution, and trading of animal health and nutrition products. It also provides solutions like farm management, technical advisory services, raw material analysis and feed formulation. The operating segments of the group are Manufacturing which relates to manufacturing of animal health and nutrition products, and Trading which relates to trading and distribution of animal health and nutrition products. It offers products like animal feed additives, veterinary pharmaceuticals, injectable products, multi-nutrient and supplement, topical dressings, cleansing agents, and other related products. The company operates in Malaysia and internationally, and generates key revenue from the Trading segment.
Why PLABS?
1. Plabs is one of the leading specialists in manufacturing, distribution and trading of animal health and nutrition products. Our Group products include animal feed additives, environment maintenance products, veterinary pharmaceuticals, biologicals, anthelmintic, antimicrobial, disinfectant, injectable products, mold inhibitor and toxin binder, multi-nutrient and supplement, complete feed premix, pre-probiotic / enzyme / acidifier, topical dressings and cleansing agents.
Source: http://www.peterlabs.com.my/
2. Recently there was a news relating to a poultry farm at Pedas, Negeri Sembilan in which there was an outbreak of Covid-19 among its workers.
https://www.freemalaysiatoday.com/category/nation/2020/05/11/tesco-stops-sourcing-chicken-from-factory-with-covid-19-outbreak/
3. With the recent news in place it’s logical that poultry players will start to be more careful with their poultry farms because by having a safe and healthy farm it will boost the confidence of customers like Tesco and other major supermarket players.
4. Government will definitely emphasize a stringent requirement for poultry players on their workers and also on their animals in order to prevent COVID-19 being spread.
5. So how does PLABS come into the fray?
Source: http://www.peterlabs.com.my/product-catalog/As we can see PLABS has quite number of animal related products
So what is interesting about PLABS is they offer disinfectant and vaccine for animals.
This is definitely an important product for poultry players because disinfectant is very important to keep the poultry farm safe from COVID 19 infection.
Source: http://www.peterlabs.com.my/product/multiguard-l-a/Vaccination is also important to poultry farms in order to keep their chickens safe & sound from viruses. Plabs offers multiple types of vaccination as this is another key point to take note.
Source: http://www.peterlabs.com.my/live-vaccine/6. Guidelines from Poultry World website on how hatcheries should be kept safe during this Covid-19 crisis which has DISINFECTANT on their guidelines.
Source: https://www.poultryworld.net/Health/Partner/2020/5/Keeping-hatcheries-safe-during-the-Covid-19-crisis-578678E/Fundamental Analysis
Very high Fair Value at RM 3.82 based on Simply Wallst website
Strong earnings as it grew 12.6% over the past year
Single digit PE ratio of 8.8 compared with the industry PE of 13.3
Source: https://simplywall.st/stocks/my/pharmaceuticals-biotech/klse-plabs/peterlabs-holdings-berhad-shares
Technical Analysis
PLABS closed at resistance 0.195 with strong volume today showing that the enthusiasm of the traders are there. Monitor for breakout if can break 0.195 thne heading to the next resistance 0.21 before going towards 0.235. Support seen at 0.175.
MACD & RSI shows bullish bias.
Conclusion
PLABS is definitely one of the major beneficiaries coming to poultry safety because poultry players would not want to damage their reputation with the market as they keen to recoup their losses during the Movement Control Order (MCO) as most business are allowed to open during this Conditional Movement Control Order (CMCO) including restaurants.
With a proper safety at the poultry farms this will boost the confidence of their customers to purchase their chickens.
Disclaimer: The above opinion is never intended to be a BUY CALL whatsoever. I am sharing my observations ONLY based on fundamental; past history; current trading pattern; charts etc. Please make your own informed decision before buying this share or whatever share for that matter.
https://klse.i3investor.com/blogs/Innothestar/2020-05-27-story-h1507865504-PLABS_0171_The_animal_specialist.jsp
