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
1.
NAMA
MATRIK NO
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 200day 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.
Hup Seng Industries
Apollo Food Holdings
Apollo Food Holdings
Hupgraph,
Seng Industries
Based on the
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.