BAIRAHA FARMS PLC (BFL.N0000)

Net asset value 240 EPS for December 7.5 it should be 200+ company. It may start rallying with the results.

There were 0.5 million shares traded at 170 today.

Pbv wrote:There were 0.5 million shares traded at 170 today.

Massive loss recorded this Qtr in report.

ADVENTUS wrote:

Pbv wrote:There were 0.5 million shares traded at 170 today.

Massive loss recorded this Qtr in report.

Group showing a huge profit... Company loss is due to high  cost of sales... and i see huge provisions were made for Weight loss and doubtful debts.

Mr. X wrote:

ADVENTUS wrote:

Pbv wrote:There were 0.5 million shares traded at 170 today.

Massive loss recorded this Qtr in report.

Group showing a huge profit... Company loss is due to high  cost of sales... and i see huge provisions were made for Weight loss and doubtful debts.

Value only less than 150 LKR. as per the EPS

junior wrote:

Mr. X wrote:

ADVENTUS wrote:

Pbv wrote:There were 0.5 million shares traded at 170 today.

Massive loss recorded this Qtr in report.

Group showing a huge profit... Company loss is due to high  cost of sales... and i see huge provisions were made for Weight loss and doubtful debts.

Value only less than 150 LKR. as per the EPS

This was over valued yesterday, The actual price per share should be Rs.120/- or less

nathanfornash wrote:A good example of what happens when people buy stock on retail speculation rather than fundamentals. Sorry to say you likely bought BFL at way too high. Don't sell now, the least you can do is try not to lose a penny. I'm sure at some point in the future more retail buyers will come in and jack the price up - you may then want to sell at a suitable profit before you get burned like so many others did on this stock in the past.

May I remind the greedy lot here of what I said 10 years ago. The price today is 1/5 of what is was and those who predicted 600 turned out to be jokers. Let it be a lesson to never ever be greedy.

BFL - all are ignored this superb gem.

All of Hotel stocks are moving with expected tourist arrival / open country / open economy/hotels...etc.
But, Hotels will take more time to earn profits.

BFL will have more benefit due to opening country + Tourist arrival + Opening Hotels.
Q1 they earn 6 EPS.
Q2 may be bit lower due to lock down period.
But, I am sure Q3 and Q4 will be superb.
NAV 256.

Hopefully they will earn 25 / 30 Plus EPS and with current market 10/12 PE, easily BFL will be 250/300 valued gem within next 06 months and I can see 75/100% return.
This is early alert for you to study.

Yes, I think hotel rally will end soon and BFL, TAFL and GRAN will move up definitely with good dividend.

Looking BFL will be another 100% plus return giving equity at the end of 2021/22, Q1 already given 6 plus EPS and I believe Q3 and Q4 can be amazing.

https://www.dailymirror.lk/business-news/Bairaha-Farms-1Q-earnings-reflect-higher-demand-and-prices-for-chicken/273-217334

[size=33]Bairaha Farms 1Q earnings reflect higher demand and prices for chicken[/size]

Bairaha Farms PLC, a leading chicken processor in the country reported strong financial performance for the quarter ended in June (1Q22), as demand for chicken recovered from the pandemic-induced slowdown while prices also remained elevated, supporting the company’s margins. 

The company engaged in the complete poultry supply chain reported sales of Rs.1.38 billion for the quarter under review, up 20 percent from a year ago, as a result of the lower base that prevailed last year due to lockdowns, which hampered the sales to a larger extent. 

Despite the strong growth in the top line, the poultry group maintained its direct costs at the same level to that of last year’s as prices of chicken and day-old-chicks rose substantially. 
For instance, the retail price of a kilogram of fresh chicken hovered between Rs.667.50 and 673.75 from April through June from Rs.542.67 and Rs.625.68 a kilogram during the same period last year, the retail prices published by the Census and Statistics Department showed. 
The prices which were higher by as much as 23 percent at the beginning of April eased towards the end of June, due to the higher base that prevailed in June last year. 
This sharp increase in retail prices for fresh chicken helped the company and the broader industry to offset the pressures coming from feed costs, the largest cost component of poultry rearing, accounting for two thirds of total cost of poultry rearing. 

Bairaha Farms is engaged in the complete poultry supply chain via its joint venture and subsidiary companies as it does chicken processing, parent breeding, broiler day-old chicks production, broiler farming, and value-added meat manufacturing.

The demand for chicken parts has also increased due to the affordability and the added choice offered to the price sensitive consumer, which further supports the margins of the large poultry producers, a brief note issued by Capital Alliance Research on the industry said in April this year.

While these developments bode well for the large scale-poultry producers such as Bairaha Farms, which has the scale and the financial muscle to withstand higher costs, the research firm warned that escalating feed costs could force small scale poultry farmers out of business as already seen from the exit of considerable number of small scale farmers in the Kurunegala district.  

Bairaha Farms is a 50 percent joint venture partner of Fortune Agro Industries (Pvt) Limited which runs a feed mill, established in June 2016 to minimise undue volatility in the supply caused by the sporadic issuance of permits for corn import. 

The company along with its other joint venture entity, Windsor Real Estate Limited in 2019 completed the acquisition of lands, buildings and silos of CIC Grain Private Limited for Rs.340 million for the purpose of storage and drying of maize. 

The company reported earnings of Rs.6.17 a share or Rs.98.8 million for the quarter under review compared to a loss per share of Rs.8.49 a share or a total loss of Rs.135.8 million in the same period last year. 

Another possible positive factor for BFL :

The group has two joint ventures Fortune Agro industries (Pvt) Ltd a feed mill, Fortune GP Farms (Lanka) Ltd, a breeder farm.


and JV profits will more contributes to its future earnings.


https://economynext.com/sri-lankas-bairaha-farms-boosted-by-jv-profits-in-dec-2020-78145/


[size=48]Sri Lanka’s Bairaha Farms boosted by JV profits in Dec 2020[/size]

ECONOMYNEXT – Sri Lanka’s Bairaha Farms Plc, a poultry group has reported profits of 120 million rupees in the December 2020 quarter, turning around from a loss of 0.7 million rupees a year earlier helped by better margins and join venture profits, interim accounts showed.
The group reported earnings of 7.54 rupees for the quarter. For the nine months to September 2021, the group reported earnings of 6.88 rupees on total profits of 110 million rupees.
The stock closed up 18.75 rupees at 169.25 rupees on January 22.
Bairaha Farms reported revenues of 1.17 billion rupees for the December 2020 quarter, up 9 percent while cost of sales fell 8 percent to 992 million rupees, allowing gross profits to grow 21 percent to 182 million dollars.
Finance cost rose 1 percent to 17.2 million rupees.
Share of profits from joint venture companies rose to 85 million rupees from a million rupee loss a year earlier.
The group has two joint ventures Fortune Agro industries (Pvt) Ltd a feed mill, Fortune GP Farms (Lanka) Ltd, a breeder farm. (Colombo/Jan24/2021)

Cost of chicken feed is the major component of Poultry Sectors cost of sales. Since the Maize import and Local market controlled by a group they went on a backward integration in supply chain to secure maize. Strategy looked good until the dollar crisis and fertilizer ban came from Government
xtra
No fertiliser means less maise. No dollars means no imports. Now there is a shortage ,the demand goes up and price goes = less profit

Can we expect extraordinary results in September?

Hawk Eye wrote:Cost of chicken feed is the major component of Poultry Sectors cost of sales. Since the Maize import and Local market controlled by a group they went on a backward integration in supply chain to secure maize. Strategy looked good until the dollar crisis and fertilizer ban came from Government
xtra
No fertiliser means less maise. No dollars means no imports. Now there is a shortage ,the demand goes up and price goes = less profit

Can we expect extraordinary results in September?

Yes. Agree COS is the issue for Poultry sector.
Totally I ignore the Q2 (Sep). It can be a Marginal results or either break even due to lockdown effected + close of hotel sector business.
But, I think Q3 and Q4 can be super. My forecast is for 2H 2021/22. 

I see some more demand for chicken and therefore BFL's financial improvements now onwards with reopening country/re functioning hotel sector/tourism arrival/upcoming festival and new year seasons. Further JV profits will help them to further positive.

BFL unable to deliver good financials after the 2019 Easter Sunday attack + close of tourism. Further Covid Lockdown/island wide curfew also effected. But, Q1 results were good and hope next year they may earn more.

I am a big fan of BFL share.  Im just sharing my personal views to add some spice

I always feel they should have retained the Golden Rooster. How much food scientists and famous Chefs we have in this country and we just had to close it. We could have had our Sri Lankan brand of fried chicken range along with spending our Dollars to KFC ,Mc Donald, Subway.

Once when i visited Kenny Rogers Restaurant, I quickly read how they started the restaurant chain.  So why not authentic Sri Lankan recipe. I always feel BFL missed such an opportunity to take the brand to a new level. I always felt the chicken fried at our Sri Lankan homes are much healthier and tastier than the foreign brands 

India has IFC   Indian Fried Chicken, Chawlas Chicken, and why not we

I strongly believe the BFL value added segment not working for them. I once tried marinated chicken and thats the end of Bairaha Value added packs

Hawk Eye wrote:I am a big fan of BFL share.  Im just sharing my personal views to add some spice

I always feel they should have retained the Golden Rooster. How much food scientists and famous Chefs we have in this country and we just had to close it. We could have had our Sri Lankan brand of fried chicken range along with spending our Dollars to KFC ,Mc Donald, Subway.

Once when i visited Kenny Rogers Restaurant, I quickly read how they started the restaurant chain.  So why not authentic Sri Lankan recipe. I always feel BFL missed such an opportunity to take the brand to a new level. I always felt the chicken fried at our Sri Lankan homes are much healthier and tastier than the foreign brands 

India has IFC   Indian Fried Chicken, Chawlas Chicken, and why not we

I strongly believe the BFL value added segment not working for them. I once tried marinated chicken and thats the end of Bairaha Value added packs

Found below article,
 https://www.dailynews.lk/2020/12/26/finance/237148/bairaha%E2%80%99s-new-product-range-introduced-season

during pandemic period they tried to introduce something - looks very small and have to wait and see its success.  

Bairaha’s new product range introduced for the season



Saturday, December 26, 2020 - 01:00

Print Edition
Business

We have seen some momentum in the poultry sector past few days. in my opinion poultry sector is undervalued and especially BFL.

BFL - Silent Sleeping Giant

Q1 EPS = 6.17
Q2 EPS = 9.74
Q1 + Q2 (06 months) EPS = 15.92 - This is 58% growth for QoQ
Q3 and Q4 will be the best quarters. 

December - Xmas Period
December - Holiday Period
January - New Year 2022
March/April - Sinhala New Year Period
Lockdown over. Super Markets Open.
No Price Control for Chicken.
More Tourist Arrival reporting & picking up. 
Hotel Bookings Bit by Bit starts.

ASI is now 11,000....not 7,000....BFL Price to adjust.

BFL is market leader. Looking their worst period is over. 
Will it break TAFL price and start lead poultry journey ? 
Keep eye for Q3 and Q4.

Rs.300 on the card..

Good vertically integrated company thru its Joint Ventures and doing extremely good in tough time.. GRAN and TAFL are struggling but BFL is doing better compare to to its peers.

As EPS mentioned, good time ahead for Poultry as Xmas and new year season. Also country is gradually opening for tourism which is good sign for the industry.

BFL - Very good Volume traded today 

Brand value or BFL as at 2020 was 1,245Mn- Brand Finace.
Adjusted NAV including brand value- 345 per share
Forecasted EPS (including effect or recent price increases)- 35.00 (minimum)
Expected fair value 350.00

Bairaha increased the price of 1kg chicken to 800 from 660 recently where the price control has been removed for chicken. December seasonal sales will come back to pre covid levels. World commodity price of maize down from 780 to 580usd and soybeans down to 1250 usd from 1600.

Next 6 month is belongs to BFL, I expect BFL to break all time high of 500++ with very good earnings and possible sub division  

Very much possible due to favourable environment and solid fundamentals of the Company, let the history repeat.

This will be a true gem.. Within 1-2 months this will cross 300 and if BULL run continue this may cross even 400.. 
Not just a promotion.. This assumption is purely based on prevailing favorable condition for poultry and analyzing company's' last few quarters earning.

BFL - Today also we witness some foreign buying and BFL lead poultry sector will have a good run very soon.
Mostly Q3 will be best for BFL and high possibility go around 15 EPS for Q3 and same as Q4. 

I believe BFL can go around 40 EPS for current FY and it can trade @ minimum 8 or 10 PE. So BFL price for Rs. 300 - 400 between will easy, if they given positive above average earnings.

Current Market PE is 14 and also Food sector trading at 13.5 PE, therefore more possibility to trade at 8/10 around PE for BFL. 
Further, ASI hit now 11,400 and BFL also need to upgrade soon.

Looks like its just started to shine and getting the attention..