YeeLee: De-listing from 1 July 2020

YeeLee will cease trading on 1 July 2020 as the stock will be de-listed from the exchange after the major shareholder(s) have successfully acquired more than 90% of its issued shares. For more, go here.

In May, the major shareholder(s) extended its offer to buy out minority shareholders from 12 May 2020 to 23 June 2020 at a price of RM2.06 per share, which is lower than the earlier offer price of RM2.33 per share in the unsuccessful take-over offer in April 2019.

Yesterday, the major shareholder(s) have offered to buy out any remaining minority shareholders' shares even after the de-listing of the stock at the same price of RM2.06 per share, up to 24 September 2020. For more details & "Acceptance Form", go here.

Chart: YeeLee's daily chart as at 26 Jun 2020 (Source: Malaysiastock.biz)

If you are a minority shareholder of YeeLee, you have a choice of (1) holding onto the shares of a private company or (2) selling off the shares in open market (before 1 July 2020) or by accepting the offer by the major shareholder(s) before 24 September 2020. 

My recommendation is to selling off YeeLee shares whichever way is to your convenience. If you still like to be invested in a stock with YeeLee DNA, you can consider Spritzr, a natural mineral water company that's currently part of the YeeLee group. 

Yeelee: Earnings Plummeted

Result Update

For QE1/3/2017, YeeLee's net profit dropped by 48% q-o-q or 47% y-o-y to RM6.2 million while revenue was mixed - down 8% q-o-q but up 6% y-o-y - to RM268 million. Revenue dropped q-o-q due to lower sales of beverages, Campbell's products and palm-based products. This led to a drop in profits. (The result was announced on May 31.)


Table: YeeLee's last 8 quarterly results


Graph: YeeLee's last 44 quarterly results

Valuation

YeeLee (closed at RM2.49 last friday) is now trading at a PE of 11.9 times (based on last 4 quarters' EPS of 20.93 sen). At this PER, YeeLee is deemed quite attractive for a well-diversified group with large exposure to consumer spending.

Technical Outlook

YeeLee is in a long-term uptrend which is well-supported by either its 10-month SMA line at RM2.50 or its 20 or 30-month EMA lines at RM2.20-2.30.


Chart 1: YeeLee's monthly chart as at Jun 2, 2017 (Source: Chartnexus)

Yeelee has a strong support from its horizontal line at RM2.43.


Chart 2: YeeLee's weekly chart as at Jun 2, 2017 (Source: Chartnexus)

Conclusion
Despite the weaker financial performance, YeeLee is a good stock to hold for long-term investment based on attractive valuation & positive technical outlook.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Yeelee: At The Cusp of Uptrend Acceleration?

Result Update

For QE30/9/2016, YeeLee's net profit increased by 8% q-o-q or 28% y-o-y to RM10.9 million while revenue was mixed - down 6% q-o-q but up 25% y-o-y to - RM248 million. PBT rose q-o-q mainly due to higher sales of aerosol cans and palm oil mill able to turnaround in this quarter with better OER and higher fresh fruit bunches ("FFB") processed offsetting the lower sales of consumer products in trading division. {Note: The result for QE30/9/2016 was announced on November 24, 2016.]


Table: YeeLee's last 8 quarterly results


Graph: YeeLee's last 41 quarterly results

Valuation

YeeLee (closed at RM2.55 at the close of the morning session) is now trading at a PE of 10.9 times (based on last 4 quarters' EPS of 23.5 sen). At this PER, YeeLee is deemed quite attractive for a well-diversified group with large exposure to consumer spending. While its dividend yield is low at 1.4%, it's trading at a discount of 14% to its book value (of RM2.97 as at 30/9/2016).

Technical Outlook

YeeLee is in a long-term uptrend. Its uptrend is however capped by the line connecting its recent peaks, RR. The stock is now pushing against that resistance line. If it can break above this line at RM2.55-2.60, its uptrend may accelerate.


Chart 1: YeeLee's monthly chart as at Jan 10, 2017_12.30 (Source: Chartnexus)

I have also appended the weekly and daily charts to show the critical resistance level of RM2.55-2.60 that's checking the stock's upside.


Chart 2: YeeLee's weekly chart as at Jan 10, 2017_12.30 (Source: Chartnexus)


Chart 3: YeeLee's daily chart as at Jan 10, 2017_12.30 (Source: Chartnexus)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, YeeLee is a good stock to hold for long-term investment. The uptrend may accelerate once the share price can breach the resistance level of RM2.55-2.60.


Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Yeelee: Quarterly earnings at 10 years high

Result Update

For QE31/12/2015, YeeLee's net profit increased by 28% q-o-q or 139% y-o-y to RM10.9 million while revenue rose 20% q-o-q or 43% y-o-y to RM238 million. Profits rose q-o-q due to income from sales of timber logs and better profit margin achieved by palm oil refinery.


Table: YeeLee's last 8 quarterly results


Chart 1: YeeLee's last 38 quarterly results

Valuation

YeeLee (closed at RM2.19 yesterday) is now trading at a PE of 12.4 times (based on last 4 quarters' EPS of 17.6 sen). At this PER, YeeLee is deemed fairly priced for a well-diversified group with large exposure to consumer spending.

Technical Outlook

YeeLee is in a long-term uptrend line (SS), with support at RM1.70-1.80.


Chart 2: YeeLee's monthly chart as at Mar 1, 2016 (Source: ShareInvestor)

In the past 3 years, Yeelee has been rising in a regular cycle. We may be seeing the peak in the current up cycle. If so, the next phase could be a down cycle where the stock will test its uptrend line support at RM1.70-1.80.
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Chart 3: YeeLee's weekly chart as at Mar 1, 2016 (Source: ShareInvestor)

Conclusion

Based on good financial performance, fair valuation & positive technical outlook, YeeLee is a good stock to hold for long-term investment. If you can wait, the good entry level would be at RM1.70-1.80.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, YeeLee.