KUALA LUMPUR: Poultry company CCK Consolidated Bhd rose to a multi-year high of 86 sen on Monday after CIMB Equities Research has initiated coverage with an Add rating and a 12-month target price of RM1.28.
At 11.52am, CCK was up 10.5 sen to 85 sen with 6.52 million shares done.
The FBM KLCI fell 1.85 points to 1,774.02. Turnover was 1.83 billion shares valued at RM946.73mil. There were 351 gainers, 427 losers and 368 counters unchanged.
The research house said the Shariah compliant stock is listed on the Main Board and its core activities are poultry, seafood and retail services.
CCK controls about 35% of Sarawak’s poultry market making it the state's biggest producer. Besides Sarawak, it also has exposure in the poultry markets of Sabah and Indonesia (Jakarta and Pontianak).
The group also operates 57 retail outlets, mainly located in its captive market, East Malaysia.
CCK’s key advantage is its retail arm and strong branding. While its peers have limited or no retail exposure, all its poultry products are sold through its strategically located stores.
The research house said this further complements its integrated supply chain, as shown by its better margins due to stronger pricing power.
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