KUALA LUMPUR (Nov 4): Poultry firm Teo Seng Capital Bhd fell as much as 1.6% as investors took profit following the stock's recent gains.
Investors might also have noted a report by the Edge Research, which indicated that Teo Seng traded at premium valuations.
At 10.08am, Teo Seng was traded at RM2.47 with 59,800 shares done. The stock had earlier dropped as much as four sen to RM2.45.
For comparison, the FBM KLCI fell 3.51 points or 0.2% to 1,849.83.
Acccording to Edge Research's report, which is published in The Edge Financial Daily today, Teo Seng's share price had soared 21% over the past two weeks.
The share price rise had extended the stock's gains since July this year.
"Teo Seng’s rally also coincided with an increase in interest in poultry stocks. The company’s financial performance has been positive, with turnover doubling since 2010 to RM330 million in 2013, while net margins in 1H2014 almost doubled to 11.2% from 6.6%.
"The stock trades at a premium though, at 3.2 times book with a trailing 12-month
P/E (price-earnings ratio (PER) ) of 15 times," Edge Research said.
Bloomberg data showed that Teo Seng's PER compared with the sector average of 28 times.