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    Individual Assignment 1 PDF

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    Nanthini Krishnan
    This document compares the potential outlook of the publicly listed companies Hup Seng Industries and Apollo Food Holdings. It analyzes their financial performance, stock performance, growth opportunities, riskiness, and target price. Overall, Apollo Food Holdings is shown to have better financial performance, stock performance, growth opportunities based on earnings ratings and estimates, and a higher target price. However, Apollo Food Holdings is considered slightly riskier based on price volatility analysis.

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    Individual Assignment 1 PDF

    Uploaded by

    Nanthini Krishnan
    740 views5 pages
    This document compares the potential outlook of the publicly listed companies Hup Seng Industries and Apollo Food Holdings. It analyzes their financial performance, stock performance, growth opportunities, riskiness, and target price. Overall, Apollo Food Holdings is shown to have better financial performance, stock performance, growth opportunities based on earnings ratings and estimates, and a higher target price. However, Apollo Food Holdings is considered slightly riskier based on price volatility analysis.

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    This document compares the potential outlook of the publicly listed companies Hup Seng Industries and Apollo Food Holdings. It analyzes their financial performance, stock performance, growth opportunities, riskiness, and target price. Overall, Apollo Food Holdings is shown to have better financial performance, stock performance, growth opportunities based on earnings ratings and estimates, and a higher target price. However, Apollo Food Holdings is considered slightly riskier based on price volatility analysis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    740 views5 pages

    Individual Assignment 1 PDF

    Uploaded by

    Nanthini Krishnan
    This document compares the potential outlook of the publicly listed companies Hup Seng Industries and Apollo Food Holdings. It analyzes their financial performance, stock performance, growth opportunities, riskiness, and target price. Overall, Apollo Food Holdings is shown to have better financial performance, stock performance, growth opportunities based on earnings ratings and estimates, and a higher target price. However, Apollo Food Holdings is considered slightly riskier based on price volatility analysis.

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    of 5

    UNIVERSITI UTARA MALAYSIA

    SMESTER A191 SESSION 2019/2020

    GROUP : C

    BWFN 3013 : INVESTMENT ANALYSIS

    INDIVIDUAL ASSIGNMENT : HUP SENG VS APOLLO

    LECTURER: SIR AFIRUDDIN BIN TAPA

    PREPARED BY:

    BIL NAMA MATRIK NO

    1. GAYATHIRI A/P SELVARAJU 259469


    COMPARE AND CONTRAST THE POTENTIAL OUTLOOK OF

    PUBLIC-LISTED COMPANIES

    HUP SENG INDUSTRIES VS APOLLO FOOD HOLDINGS

    The companies that I choose to compare and contrast are Hup Seng Industries and Apollo Food
    Holdings Both of the company are food industry. Hup Seng Industries manufacture and sale of
    biscuits and coffee mix in Malaysia. While, Appolo Food Holding manufactures, trades in, and
    distributes compound chocolates, chocolate confectionery products, and cakes in Malaysia.

    1.0 TRENDS OF FINANCIAL PERFORMANCE

    The trends of financial performance for both companies, the Earning per share is chosen as the

    indicator. Earnings per share is the quarterly and annual earnings per share are presented when

    available, along with the mean, high and low. Quarterly data is not available in the financial

    analyst report for both companies .Annual data for Hup Seng Industries is displayed for the past

    3 years (actual) and the next 1 years (estimated).While for the Apollo food Holdings the annual

    is displayed for the past 2 years (actual) and next 2 years (estimated). Earnings per share (EPS) is

    calculated by dividing a company's earnings by the number of shares outstanding. Analysts tend

    to interpret a pattern of increasing earnings as a sign of strength and flat or falling earnings as a

    sign of weakness. Earnings per share of Hup Seng Industries is 0.054 while earning per share

    Apollo Food Holdings is 0.218. The data shows that Apollo Food Holdings has a better financial

    performance compared to Hup Seng Industries.

    2.0 STOCK PERFORMANCE

    The next potential outlook is stock performance. Daily close prices are used to calculate the price

    performance of the stock. The performance of the relevant index is also displayed as a means of
    comparison. Daily close prices are used to calculate the performance of the stock as compared to

    a relevant index over five time periods. On 04/10/19, Hup Seng Industries closed at 0.90, 17.4%

    below its 52- week high and 1.1% above its 52-week low. Hup Seng Industries shares are

    currently trading 1.7% below their 50- day moving average of 0.92, and 6.8% below their 200-

    day moving average of 0.97. On 03/10/19, Apollo Food Holdings closed at 3.83, 9.9% below its

    52-week high and 7.9% above its 52-week low. Apollo Food Holdings shares are currently

    trading 1.7% below their 50-day moving average of 3.90, and 1.3% below their 200-day moving

    average of 3.88. Based on the data above, Apollo Food Holdings shows a better stock

    performance compared to Hup Seng Industries.

    3.0 GROWTH OPPORTUNITIES

    The Earnings Rating is based on a combination of three factors: earnings surprise, estimate

    revision, and recommendation changes. Each factor is equally weighted. Then, equal deciles are

    used to rank each stock across the market on a scale of 1 to 10, with 10 being most favorable.

    A stock needs to have at least two of the three earnings factors in order to receive a score. Hup

    Seng Industries currently has an Earnings Rating of 1, which is significantly more bearish than

    the Food Processing industry average of 4.3. Hup Seng scores a bearish 4 or less for all three

    component ratings. On 19/02/19, Hup Seng Industries announced actual earnings of 0.054 per

    share, a negative surprise of -3.6% below the consensus 0.01. Over the past 90 days, the

    consensus price target for Hup Seng has decreased notably from 1.09 to 0.97, a loss of -11.3%.

    For the past 4 quarters, the company has reported 0 positive, 2 negative, and 0 in-line surprises.

    In contract, the Earnings Rating for Apollo Food Holdings improved significantly over the past

    week from a bearish 3 to a relatively neutral 6. The average Earnings Rating for its Food
    Processing industry is 4.3 and the FTSE Bursa Malaysia Composite index average is 6.3.

    On 27/06/19, Apollo Food Holdings announced actual earnings of 0.220 per share, a positive

    surprise of 10.0% above the consensus 0.01. For the past 4 quarters, the company has reported 1

    positive, 2 negative, and 0 in-line surprises. Both companies show strong earnings with recent

    analyst upgrades or a history of surpassing consensus estimates. Based on the earnings of both

    companies, we can conclude that Apollo Food Holdings has a better growth opportunity because

    the company shows a bullish component rating compared to Hup Seng Industries

    4.0 RISKINESS

    Price analysis for the company and the relevant index is provided over two time periods. Daily

    analysis is provided for the last 90 days, whereas monthly statistics are used for the last 60

    months. Hup Seng Industries currently has a Risk Rating of 10 while the FTSE Bursa Malaysia

    Composite index has an average rating of 9.1. Over the last 90 days, Hup Seng shares have been

    less volatile than the overall market, as the stock's daily price has fluctuated less than 96% of

    FTSE Bursa Malaysia Composite index firms. Apollo Food Holdings currently has a Risk

    Rating of 8 while the FTSE Bursa Malaysia Composite index has an average rating of 9.1. Over

    the last 90 days, Apollo shares have been less volatile than the overall market, as the stock's daily

    price has fluctuated less than 99% of FTSE Bursa Malaysia Composite index firms. On days

    when the market is up Hup Seng Industries and Apollo Food Holdings shares remain relatively

    unchanged. Based on the analysis above, we can conclude that both companies has it’s risk as

    company shares is less volatile than overall market but when comparing in the term of risk the

    Apollo Food Holdings is more riskier than Hup Seng Industries


    5.0 TARGET PRICE

    The price target is based on the predictions of analysts covering the stock and shows the high,

    low and mean price expected within the next 12 months.

    Apollo Food Holdings


    Hup Seng Industries

    Apollo Food Holdings


    Hupgraph,
    Based on the Seng Industries
    Hup Seng Industries has a price target of 0.90 MYR, while Apollo Food

    Holdings has a price target of 3.83 MYR. Based on the price target above, Apollo Food Holdings

    has a higher price target expected within next 12 months compared to Hup Seng Industries.

    The target price of Apollo Food Holdings is estimated to increase in future however Hup Seng

    Industries is estimated to decrease in the future. Therefore Apollo Food Holdings is preferable to

    invest due to higher growth opportunities.

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