The raw truth of the performance of the plantation sector over the last decade.

Plantation Sector

The core business of palm oil plantations is brutally cyclical. Profits are a direct function of volatile global commodity prices (CPO, PK). The 10-year financial charts of plantation companies show this perfectly: massive profit swings from high to low and back. This makes the business unpredictable and difficult to value.

The market treats the plantation companies as a commodity producer, assigning them low valuation multiples: low P/E and P/B ratios. Many are often seen as value traps.

ESG & Regulatory Headwinds: The plantation sector faces persistent environmental, social, and governance (ESG) scrutiny, which can limit investor appetite and increase operational costs.

A few plantation companies shine and differentiate themselves from a purely gruesome commodity play. They have excelled in financial management. They have built what might be called a "Financial Moat."

This Moat provides Financial Resilience: In a gruesome, cyclical industry, the company with an unmatched balance sheet strength has a competitive advantage. When the next inevitable downturn hits, it will not just survive; it will thrive. It can:

• Continue investing and paying dividends while competitors struggle.
• Acquire distressed assets at low prices.
• Navigate low-price periods without existential risk.

Share prices at 2016 and 2025 of various plantation companies.

Company  2016      2025

KLK         23.00     20.00

Utd Plt       12.5      29.84 

UMCCA     6.05      5.910

KLoong      0.70      2.380

Matang      0.130      0.075

NSOP        4.00       5.750

RSawit       0.505     0.185

TDM         0.655      0.175

THPlant    1.190      0.555

TSH          1.930      1.230

Cepat        0.723      0.720

GENP      10.20       4.950

HSPlant     2.40       2.160

IOI            4.30       4.080

JTiasa      1.320      1.060

SOP         4.350      3.720

All these 16 companies show marked volatility and cyclicity in their share prices over the last 10 years.  The share prices of 13 of these 16 stocks were higher in 2016 than their today's price 19.12.2025.  Only 3 have prices today that are higher than their prices in 2016.  (These 3 stocks are highlighted in yellow.) Utd Plt and KLoong are obvious stars among this group.  

Perhaps, comparing 2025 with 2016 might not be a fair comparison.  

There are 2 types of cyclical stocks:  cyclicals stocks and cyclical growth stocks.  Utd Plt and KLoong are cyclical growth stocks.

Would you be happy holding onto Plantation Stocks for the long term?   If you are a buy and hold forever investor, perhaps, this sector is not your playground.  

Plantation Sector and the Plantation Stocks' PE

 Plantation sector

The core business of palm oil plantations is brutally cyclical. Profits are a direct function of volatile global commodity prices (CPO, PK). The 10-year financial charts of plantation companies show this perfectly: massive profit swings from high to low and back. This makes the business unpredictable and difficult to value.

The market treats the plantation companies as a commodity producer, assigning them low valuation multiples: low P/E and P/B ratios. Many are often seen as value traps.

ESG & Regulatory Headwinds: The plantation sector faces persistent environmental, social, and governance (ESG) scrutiny, which can limit investor appetite and increase operational costs.

A few plantation companies shine and differentiate themselves from a purely gruesome commodity play. They have excelled in financial management. They have built what might be called a "Financial Moat."

This Moat provides Financial Resilience: In a gruesome, cyclical industry, the company with an unmatched balance sheet strength has a competitive advantage. When the next inevitable downturn hits, it will not just survive; it will thrive. It can:

• Continue investing and paying dividends while competitors struggle.
• Acquire distressed assets at low prices.
• Navigate low-price periods without existential risk.

Plantation Stocks PE

Company	Price	PE	DY	ROE
Astral Asia	0.10	-	0.00	-1.78
Batu Kawan	19.36	16.54	3.62	6.01
BLD Plantation	16.04	25.50	0.19	7.08
Cepatwawasan	0.72	8.55	6.94	6.28
Chin Teck	10.84	4.94	4.70	18.35
DSR Taiko	1.18	-	0.00	-
Dutaland	0.29	26.61	0.00	0.74
Far East Hldgs	4.45	10.96	3.15	15.32
FGV	0.00	-	-	6.26
Genting Plantns	4.96	9.84	5.04	8.88
Golden Land	0.23	1.86	0.00	8.48
Gopeng	0.84	11.85	1.19	7.31
Hap Seng Plant	2.16	9.63	5.79	8.56
Harn Len	0.58	11.36	2.61	8.92
Inch Kenneth	0.38	-	0.00	-1.53
Innoprise	1.83	9.79	8.50	28.32
IOI Corp	4.08	21.75	2.57	9.47
Jaya Tiasa	1.06	6.57	6.13	9.49
Johor Plantns	1.59	11.77	3.30	11.45
Kim Loong	2.38	14.44	6.30	17.35
Kluang Rubber	5.55	14.32	1.08	2.88
Kretam	0.68	9.38	2.21	15.14
KL Kepong	19.96	27.26	3.01	5.72
Malpac	0.72	-	13.89	-0.25
Matang	0.08	31.25	2.93	2.40
Mentiga	0.49	56.32	0.00	0.28
MHC Plantns	1.30	5.58	6.92	12.79
MKH Oil Palm	0.61	7.54	6.56	13.95
NS Oil Palms	5.75	7.75	4.52	7.60
NPC Resources	0.00	-	-	6.72
Pinehill Pacific	0.44	-	0.00	-5.54
PLS Plantns	0.37	36.87	0.00	1.59
Rimbunan Sawit	0.19	42.05	0.00	2.32
Riverview Rubr	2.90	18.37	3.45	2.82
Sarawak Oil Plms	3.73	7.33	4.02	11.21
Sarawak Plantn	2.84	8.21	7.04	11.41
SD Guthrie	5.59	13.91	2.93	15.16
Sin Heng Chan	0.22	10.00	0.00	2.37
Sg Bagan Rubr	5.61	2.78	2.32	16.21
Ta Ann	4.14	9.78	8.45	9.79
TDM	0.18	51.47	2.11	0.89
TH Plantns	0.56	5.67	5.41	10.99
TSH Resources	1.24	7.77	2.02	10.58
United Malacca	5.93	8.53	3.04	9.46
United Plantns	29.76	23.31	3.83	27.20

Here is the table sorted by the Price-to-Earnings (PE) ratio in ascending order:

Company	Price	PE	DY	ROE
Golden Land	0.23	1.86	0.00	8.48
Sg Bagan Rubr	5.61	2.78	2.32	16.21
Chin Teck	10.84	4.94	4.70	18.35
MHC Plantns	1.30	5.58	6.92	12.79
TH Plantns	0.56	5.67	5.41	10.99
Jaya Tiasa	1.06	6.57	6.13	9.49
MKH Oil Palm	0.61	7.54	6.56	13.95
Sarawak Oil Plms	3.73	7.33	4.02	11.21
NPC Resources	0.00	-	-	6.72
Kretam	0.68	9.38	2.21	15.14
TSH Resources	1.24	7.77	2.02	10.58
NS Oil Palms	5.75	7.75	4.52	7.60
Sarawak Plantn	2.84	8.21	7.04	11.41
Cepatwawasan	0.72	8.55	6.94	6.28
United Malacca	5.93	8.53	3.04	9.46
Hap Seng Plant	2.16	9.63	5.79	8.56
Genting Plantns	4.96	9.84	5.04	8.88
Innoprise	1.83	9.79	8.50	28.32
Ta Ann	4.14	9.78	8.45	9.79
Sin Heng Chan	0.22	10.00	0.00	2.37
Far East Hldgs	4.45	10.96	3.15	15.32
Harn Len	0.58	11.36	2.61	8.92
Gopeng	0.84	11.85	1.19	7.31
Johor Plantns	1.59	11.77	3.30	11.45
SD Guthrie	5.59	13.91	2.93	15.16
Kim Loong	2.38	14.44	6.30	17.35
Kluang Rubber	5.55	14.32	1.08	2.88
Batu Kawan	19.36	16.54	3.62	6.01
Riverview Rubr	2.90	18.37	3.45	2.82
IOI Corp	4.08	21.75	2.57	9.47
United Plantns	29.76	23.31	3.83	27.20
BLD Plantation	16.04	25.50	0.19	7.08
Dutaland	0.29	26.61	0.00	0.74
KL Kepong	19.96	27.26	3.01	5.72
Matang	0.08	31.25	2.93	2.40
PLS Plantns	0.37	36.87	0.00	1.59
Rimbunan Sawit	0.19	42.05	0.00	2.32
TDM	0.18	51.47	2.11	0.89
Mentiga	0.49	56.32	0.00	0.28
Astral Asia	0.10	-	0.00	-1.78
DSR Taiko	1.18	-	0.00	-
FGV	0.00	-	-	6.26
Inch Kenneth	0.38	-	0.00	-1.53
Malpac	0.72	-	13.89	-0.25
Pinehill Pacific	0.44	-	0.00	-5.54

Here is the table sorted by Dividend Yield (DY) in descending order:

Company	Price	PE	DY	ROE
Malpac	0.72	-	13.89	-0.25
Innoprise	1.83	9.79	8.50	28.32
Ta Ann	4.14	9.78	8.45	9.79
Sarawak Plantn	2.84	8.21	7.04	11.41
Cepatwawasan	0.72	8.55	6.94	6.28
MHC Plantns	1.30	5.58	6.92	12.79
MKH Oil Palm	0.61	7.54	6.56	13.95
Kim Loong	2.38	14.44	6.30	17.35
Jaya Tiasa	1.06	6.57	6.13	9.49
TH Plantns	0.56	5.67	5.41	10.99
Genting Plantns	4.96	9.84	5.04	8.88
Hap Seng Plant	2.16	9.63	5.79	8.56
Chin Teck	10.84	4.94	4.70	18.35
NS Oil Palms	5.75	7.75	4.52	7.60
Sarawak Oil Plms	3.73	7.33	4.02	11.21
Batu Kawan	19.36	16.54	3.62	6.01
Riverview Rubr	2.90	18.37	3.45	2.82
Johor Plantns	1.59	11.77	3.30	11.45
Far East Hldgs	4.45	10.96	3.15	15.32
United Malacca	5.93	8.53	3.04	9.46
United Plantns	29.76	23.31	3.83	27.20
KL Kepong	19.96	27.26	3.01	5.72
SD Guthrie	5.59	13.91	2.93	15.16
Matang	0.08	31.25	2.93	2.40
Harn Len	0.58	11.36	2.61	8.92
Kretam	0.68	9.38	2.21	15.14
Sg Bagan Rubr	5.61	2.78	2.32	16.21
TDM	0.18	51.47	2.11	0.89
TSH Resources	1.24	7.77	2.02	10.58
BLD Plantation	16.04	25.50	0.19	7.08
Gopeng	0.84	11.85	1.19	7.31
Kluang Rubber	5.55	14.32	1.08	2.88
IOI Corp	4.08	21.75	2.57	9.47
Golden Land	0.23	1.86	0.00	8.48
Astral Asia	0.10	-	0.00	-1.78
DSR Taiko	1.18	-	0.00	-
Dutaland	0.29	26.61	0.00	0.74
Inch Kenneth	0.38	-	0.00	-1.53
Mentiga	0.49	56.32	0.00	0.28
Pinehill Pacific	0.44	-	0.00	-5.54
PLS Plantns	0.37	36.87	0.00	1.59
Rimbunan Sawit	0.19	42.05	0.00	2.32
Sin Heng Chan	0.22	10.00	0.00	2.37
FGV	0.00	-	-	6.26
NPC Resources	0.00	-	-	6.72

Here is the table sorted by Return on Equity (ROE) in descending order:

Company	Price	PE	DY	ROE
Innoprise	1.83	9.79	8.50	28.32
United Plantns	29.76	23.31	3.83	27.20
Chin Teck	10.84	4.94	4.70	18.35
Kim Loong	2.38	14.44	6.30	17.35
Sg Bagan Rubr	5.61	2.78	2.32	16.21
Far East Hldgs	4.45	10.96	3.15	15.32
SD Guthrie	5.59	13.91	2.93	15.16
Kretam	0.68	9.38	2.21	15.14
MKH Oil Palm	0.61	7.54	6.56	13.95
MHC Plantns	1.30	5.58	6.92	12.79
Sarawak Plantn	2.84	8.21	7.04	11.41
Sarawak Oil Plms	3.73	7.33	4.02	11.21
Johor Plantns	1.59	11.77	3.30	11.45
TH Plantns	0.56	5.67	5.41	10.99
TSH Resources	1.24	7.77	2.02	10.58
Ta Ann	4.14	9.78	8.45	9.79
Jaya Tiasa	1.06	6.57	6.13	9.49
IOI Corp	4.08	21.75	2.57	9.47
United Malacca	5.93	8.53	3.04	9.46
Harn Len	0.58	11.36	2.61	8.92
Genting Plantns	4.96	9.84	5.04	8.88
Hap Seng Plant	2.16	9.63	5.79	8.56
Golden Land	0.23	1.86	0.00	8.48
Gopeng	0.84	11.85	1.19	7.31
NS Oil Palms	5.75	7.75	4.52	7.60
BLD Plantation	16.04	25.50	0.19	7.08
Cepatwawasan	0.72	8.55	6.94	6.28
Batu Kawan	19.36	16.54	3.62	6.01
FGV	0.00	-	-	6.26
NPC Resources	0.00	-	-	6.72
KL Kepong	19.96	27.26	3.01	5.72
Riverview Rubr	2.90	18.37	3.45	2.82
Kluang Rubber	5.55	14.32	1.08	2.88
Matang	0.08	31.25	2.93	2.40
Sin Heng Chan	0.22	10.00	0.00	2.37
Rimbunan Sawit	0.19	42.05	0.00	2.32
PLS Plantns	0.37	36.87	0.00	1.59
TDM	0.18	51.47	2.11	0.89
Dutaland	0.29	26.61	0.00	0.74
Mentiga	0.49	56.32	0.00	0.28
Malpac	0.72	-	13.89	-0.25
Astral Asia	0.10	-	0.00	-1.78
Inch Kenneth	0.38	-	0.00	-1.53
Pinehill Pacific	0.44	-	0.00	-5.54
DSR Taiko	1.18	-	0.00	-