Tumen Shuvuut (TUM) JSC, a Mongolian egg producer, has been on a roll this year, delivering an egg-cellent third quarter that's sure to make any investor yolk.

Let’s Scuba dive to Tumen Shuvuut’s earning report

The company's sales revenue soared by a whopping 73% from the last year, reaching ₮43.8 billion. This growth was fueled by a 59% increase in profit, which amounted to a remarkable ₮8.1 billion.

• But, the company's share price has fallen by 7.7% so far this year to ₮323.6. Consequently, the P/B ratio is 2.7. Looking at other indicators, the P/E ratio is 14.2, and the ROE, or return on owners' equity, is 19%.

A Market Poised for Egg-splosion

Mongolians have developed a serious love affair with eggs. Over the past two decades, egg consumption per capita has skyrocketed from a mere 12 eggs per year to a whopping 100. This trend shows no signs of slowing down, meaning that Tumen Poultry's scope is only going to expand.

In anticipation of this egg-cellent demand, the company has already supplied 97.7 million eggs to the market in 2022. And they're not stopping there. With the commissioning of the "Tumen Poultry 2" farm, the company plans to boost its production capacity by 80 million eggs in 2023, leading to an additional ₮32 billion in sales revenue.

Curbing Imports and Keeping Money at Home

Tumen Poultry's expansion efforts are not just good for the company's bottom line, they're also great news for Mongolia's economy. In the first 9 months of this year, egg imports increased by 1.4% from 2022 to 142.9 million, while the value also rose by 3.2% to $10.3 million. However, with Tumen Poultry ramping up production, this import dependency is likely to decrease, leading to significant savings in foreign currency outflows.

Finally, With the potential for import substitution and future export opportunities, Tumen Shuvuut is poised for continued success and stands as a golden egg in Mongolia's investment basket.