Question

Decide whether you should invest in Dutch Lady milk industries berhad or not. Explain in details (30m)

Answer 1

Dutch Lady Milk Berhad is a manufacturer and distributor of cow milk and dairy product in Malaysia. They have 57 years of legacy which founded on 58 may 1963. Their products including powder for infant and growing up children, liquid milk in different packaging formats and yoghurts. The company markets its products under various brand names, such as Dutch Lady, Dutch Baby, Frisolac, Friso, Dutch lady Purefarm.

If we want future earnings we can invest in the Dutch Lady as now their share price is lower than earlier. But we analyse current situation (covid 19) it is expected to decrease their profit so the earnings per share will be low as compared to past period. But when this situation passed and world returned to normal life their profit surely increase as demand for milk product increases because it contain all vitamins and minerals which help to improve our immunity system and therby helps to fight against diseases like covid etc. If we want return at the point when invested it is not sure about that. But it is expected to get in future when we consider their revenue its varies now a days.

My opinion is to wait for some days as securites price is decreasing only when covid19 is recovering worldwidw at that period of time the business will slightly able to recover as on 2019 their security price is60 which decrease to 38 on 2020.