Plantation stocks at a glance

 

Profits of Malaysian plantation companies are heavily influenced by external factors

December 30, 2022 

CPO expected to average at RM5,100 a tonne in 2022, seen at RM3,800 a tonne in 2023, says MPOB

KUALA LUMPUR (Dec 30): The Malaysian Palm Oil Board (MPOB) expects the price of crude palm oil (CPO) to average at RM5,100 a tonne in 2022, which is 15.7% higher compared to RM4,407 a tonne in 2021.

The government agency also foresees the price of CPO to stabilise at an average of RM3,800 a tonne in 2023 in anticipation of 

• higher palm oil production, 
• improved weather conditions in the second half of 2023 and 
• higher availability of supply of other major vegetable oils.

MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said soybean oil prices, which are expected to be low due to the higher production in Brazil and the US, may impact the price of CPO.

He said in a statement on Friday (Dec 30) that the strengthening of the ringgit against the US dollar may also affect the price of CPO.

According to MPOB, the average CPO price for January to November 2022 was RM5,167 a tonne, up 18.4% compared to RM4,363 a tonne for the same period in 2021.

It said CPO prices had experienced a decline beginning the third quarter of 2022 due to the 

• high CPO production season, 
• rising palm oil stocks and 
• declining soybean oil prices.

Palm oil industry saw higher production, exports and revenue in 2022

MPOB expected the closing stocks of palm oil in 2022 to be at 1.85 million tonnes, up 14.9% compared to 1.61 million tonnes in December 2021 due to higher production.

Parveez said closing stocks of palm oil are projected at two million tonnes in 2023, higher than that in 2022, due to the expected higher supplies of other major vegetable oils including palm oil.

According to MPOB, CPO production for January to November 2022 stood at 16.83 million tonnes, an increase of 1% compared to 16.67 million tonnes achieved in the same period of 2021.

“This was attributed to an increase of 2.8% in processed fresh fruit bunches (FFBs) to 86.51 million tonnes in January to November 2022 compared to 84.17 million tonnes in the same period last year,” MPOB said.

Parveez said that CPO production is expected to increase slightly by 2.1% to 18.5 million tonnes in 2022 as compared to 18.12 million tonnes in 2021. He said the slow recovery is expected due to the issue of labour shortage in oil palm plantations' FFB harvesting and unloading activities.

Parveez projected CPO production to further increase to 19 million tonnes for 2023 due to the expected increase in the productive areas, especially in Peninsular Malaysia and Sarawak. He added that the workforce situation may stabilise next year as foreign worker applications are being approved in stages.

MPOB also provided data that the exports of palm oil and other palm-based products for January to November 2022 increased by 1.3% to 22.43 million tonnes compared to 22.14 million tonnes in the same period of 2021.

It said the higher price of palm oil in January to November 2022 has boosted total export revenue by 31.8% to RM120.43 billion from RM91.38 billion in January to November 2021.

Exports of palm oil alone itself rose slightly by 0.8% to 14.25 million tonnes in January to November 2022 compared to 14.14 million tonnes in the previous corresponding period, MPOB said.

“As such, palm oil export revenue surged 31% to RM80.22 billion from RM61.26 billion in the same period of 2021,” MPOB said.

Parveez said that Malaysia’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on Sept 30, 2022 will encourage demand for palm oil products as it broadens the country’s access to new markets such as Canada, Mexico and Peru, which are not covered by any existing free trade agreement.

“Based on cost benefit analysis on the potential impacts of the CPTPP, upon ratification and implementation of the CPTPP, tariffs for palm oil products are now reduced from a maximum of 6% for Canada, 5% for Mexico and 9% for Peru to lower tariffs based on the tariff elimination schedule,” he said.

“Apart from higher palm oil exports to the markets, the elimination of tariffs improves the Malaysian palm oil competitiveness in the CPTPP member countries.”

https://www.theedgemarkets.com/node/650017

Hailey Chung

theedgemarkets.com

Surin Murugiah

Conclusion:

Profits of plantation companies are affected by crude palm oil (commodity) prices which are heavily influenced by many external factors:

- seasonal fluctuation on palm oil production,
- weather conditions
- availability of supply of other major vegetable oils e.g. soya
- labour supply in oil palm plantations' FFB harvesting and unloading activities.
- strength of the ringgit
- increase in the oil palm productive areas
- tariffs for palm oil products

Kim loong - An Efficient Planter (Malacca Securities)

Author: MalaccaSecurities   |    Publish date: Wed, 9 Aug 2017, 05:45 PM 

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• We initiate coverage on Kim Loong Resources Bhd (KLR) with a HOLD recommendation and a target price of RM 4.15. Although we like KLR for its standing as one of the leading mid-cap plantation companies in Malaysia with an established track record of approximately 40 years of operational experience, its valuation is already fair, in our view, after its share price has climbed steadily since the start of the year.

• We also like the company’s proficient operational structure of having delivered a higher-than-average oil extraction rate (OER) vs. the industry average over the years. Approximately 84.0% of KLR’s trees are at the prime production age and offers strong fresh fruit bunches (FFB) production yield on the approximately 15,000 ha. of oil palm land that it has cultivated in Malaysia.

• The group is currently expanding its plantation landbank, focusing on East Malaysia that will ensure longer term earnings growth and has started planting on 2,419 ha. of Native Customary Rights (NCR) land in Sarawak. Going forward, its earnings will also be augmented by the sale of electricity generated by its biogas plants.

• We expect KLR to register a double digit three-year net profit CAGR of 15.0% to reach RM94.1 mln in FY19, while revenue is expected to grow 3.9% to RM962.8 mln over the same period. We arrive at our target price by ascribing a target PER of 14.0x to its forecast FY18 EPS of 29.6 sen. The assigned PER is within its’ peers’ PERs of 13.0x-15.0x. We also expect KLR to continue rewarding its shareholders with decent dividend yields of between 5.7%-5.9% over the next two years.

Recommendation

We like KLR for its established track record as one of the more reputable plantation companies in Malaysia, having been operational over the past 40 years. Over the years, the group has also gradually positioned itself as a sizeable mid-cap plantation company in Malaysia, owning approximately 15,000 ha. of oil palm land.

KLR has been reaping higher oil extraction rate (OER) vs. the industry average over the years, showcasing the group’s competitiveness and competency in maintaining its FFB processing efficiency and quality through an integrated milling operation, coupled with reduction of wastages through the conversion of waste to increase the extraction of residual oil from pressed fibre.

We are also positive on KLR’s expansion plans in the Sarawak region. The group is in the midst of obtaining the acceptance from Native Customary Rights (NCR) owners for the remaining land. With the completion of the aforementioned acquisition, KLR will own approximately 23,500 ha. of plantation land across Malaysia.

The group’s operations are also overseen by an experienced management team with over 40 years of experience in the oil palm industry (refer to Appendix 1 for full profile of its Board of Directors), thereby ensuring sustainable top-of-the-range operational statistics and OERs going forward.

At current price of RM4.00, however, we think that its share price upsides are limited given that KLR valuation is already fair, trading at prospective FY18 and FY19 PERs of 13.1x and 12.9x, which are close to its peers average of 13.3x and 15.1x respectively. Nonetheless, we are positive on KLR growth prospects, backed by its established track record, coupled with its position as one of the leading plantation companies in Malaysia with higher operational efficiency vs. its peers.

At the target price of RM4.15, KLR will trade an implied PER of 13.5x and 13.3x for FY18 and FY19 respectively, which is slightly below of its peers, but close to fair, in our opinion, given the cyclical nature of the crude palm oil industry.

Investment Risk

Risks to our recommendation include fluctuations in the CPO prices. The volatility of CPO prices is subjected to weather conditions, demand (mainly from both China and India) and supply (from both Malaysia and Indonesia).

The supply of soybeans could affect CPO prices as both products are regarded as substitutes. Should the soybean price premium against the CPO price decline overtime, demand will shift to the former product and vice versa.

A firmer Ringgit against the U.S. Dollar could impact the group’s bottom line. A recovery in the local currency against the Greenback will negatively impact on the group’s earnings and vice versa, as the majority of the country’s CPO output are exported.

The plantation sector in Malaysia relies heavily on foreign workers. Foreign workers in the plantation sector’s job scope typically include harvesting, field works and other adhoc works. A worst-than-expected labour shortage, particularly in East Malaysia, could hamper harvesting and the corresponding production efficiency.

Source: Mplus Research - 9 Aug 2017

Felda Global Ventures, Sime Darby, IOI Corp and Genting Plantations

IOI Corp's business profile stronger: Moody's 

BY RUPA DAMODARAN - 21 NOVEMBER 2016 

KUALA LUMPUR: Felda Global Ventures Holdings Bhd may be the leader in the palm oil sector by size but IOI Corporation Bhd has a stronger business profile, says Moody's. 

It said IOI’s highly efficient upstream operations and integrated business model supports financial stability. 

“We believe an integrated company is less exposed to CPO price cyclicality and has more stable, albeit much lower profit margins. IOI's leverage ratios exhibit more stability, helped by resilient profit margins. "

We expect Felda will maintain its production leadership position as Sime Darby's -- Malaysia's second-largest producer -- efforts to increase its CPO production through improving harvesting yields and productivity will likely be realised after 12 months," says Jacintha Poh, a Moody's Vice-President and Senior Analyst. 

Felda's annual crude palm oil (CPO) production was more than three million metric tons over its last three fiscal years, a lead of more than 500,000 MT over Sime Darby Berhad and more than four times the outputs of IOI and Genting Plantations. 

IOI's upstream operations are most efficient, with it consistently generating the highest fresh fruit bunch (FFB) yield among all four companies and in fiscal 2015, it achieved FFB yield of around 24 MT, versus Malaysia's industry average of around 18 MT-19 MT, added Poh. 

However, Moody's expects all four companies to generate lower FFB yields over the next 6 to 12 months due to poor weather conditions.

Read More : http://www.nst.com.my/news/2016/11/190582/ioi-corps-business-profile-stronger-moodys

Malaysian Plantations Market Capitalization

Market Capitalization					Period (Yr)	4
	Mar-08		Mar-12		Change	CAGR
RM	(million)		(million)
Batu Kawan	4490.3		8239.47		83.5%	16.4%
Boustead	3176.65		5636.46		77.4%	15.4%
Chin Teck	666.95		827.75		24.1%	5.5%
Far East Hold	844.31		1060.43		25.6%	5.9%
GENP	6082.19		7284.92		19.8%	4.6%
Glenealy	546.82		827.15		51.3%	10.9%
Hap Seng Plant	2272		2440		7.4%	1.8%
IJM Plantations	1942.52		2709.8		39.5%	8.7%
IOI	44617.65		35907.77		-19.5%	-5.3%
Kim Loong	708.17		829.35		17.1%	4.0%
KLK	17613.83		25961.72		47.4%	10.2%
Kulim	2180.19		5583.1		156.1%	26.5%
Kwantas	1271.65		748.03		-41.2%	-12.4%
SOP	1140.86		3018.77		164.6%	27.5%
THPlant	615.74		1480.7		140.5%	24.5%
TWSPlant	1852.04		3000.3		62.0%	12.8%
TSH	1176.59		2082.34		77.0%	15.3%
Unico	892.15		1055.38		18.3%	4.3%
UMCCA	1031.84		1545.61		49.8%	10.6%
UTDPLT	2893.06		5124.26		77.1%	15.4%

Sorted by Market Cap of Mar 2012 (from largest to smallest)

Market Capitalisation					Period (Yr)	4
	Mar-08		Mar-12		Change	CAGR
RM	(million)		(million)
IOI	44617.65		35907.77		-19.5%	-5.3%
KLK	17613.83		25961.72		47.4%	10.2%
Batu Kawan	4490.3		8239.47		83.5%	16.4%
GENP	6082.19		7284.92		19.8%	4.6%
Boustead	3176.65		5636.46		77.4%	15.4%
Kulim	2180.19		5583.1		156.1%	26.5%
UTDPLT	2893.06		5124.26		77.1%	15.4%
SOP	1140.86		3018.77		164.6%	27.5%
TWSPlant	1852.04		3000.3		62.0%	12.8%
IJM Plantations	1942.52		2709.8		39.5%	8.7%
Hap Seng Plant	2272		2440		7.4%	1.8%
TSH	1176.59		2082.34		77.0%	15.3%
UMCCA	1031.84		1545.61		49.8%	10.6%
THPlant	615.74		1480.7		140.5%	24.5%
Far East Hold	844.31		1060.43		25.6%	5.9%
Unico	892.15		1055.38		18.3%	4.3%
Kim Loong	708.17		829.35		17.1%	4.0%
Chin Teck	666.95		827.75		24.1%	5.5%
Glenealy	546.82		827.15		51.3%	10.9%
Kwantas	1271.65		748.03		-41.2%	-12.4%

Sorted by biggest change in Market Capitalization over the last 4 years (from biggest to smallest)

Market Capitalisation					Period (Yr)	4
	Mar-08		Mar-12		Change	CAGR
RM	(million)		(million)
SOP	1140.86		3018.77		164.6%	27.5%
Kulim	2180.19		5583.1		156.1%	26.5%
THPlant	615.74		1480.7		140.5%	24.5%
Batu Kawan	4490.3		8239.47		83.5%	16.4%
Boustead	3176.65		5636.46		77.4%	15.4%
UTDPLT	2893.06		5124.26		77.1%	15.4%
TSH	1176.59		2082.34		77.0%	15.3%
TWSPlant	1852.04		3000.3		62.0%	12.8%
Glenealy	546.82		827.15		51.3%	10.9%
UMCCA	1031.84		1545.61		49.8%	10.6%
KLK	17613.83		25961.72		47.4%	10.2%
IJM Plantations	1942.52		2709.8		39.5%	8.7%
Far East Hold	844.31		1060.43		25.6%	5.9%
Chin Teck	666.95		827.75		24.1%	5.5%
GENP	6082.19		7284.92		19.8%	4.6%
Unico	892.15		1055.38		18.3%	4.3%
Kim Loong	708.17		829.35		17.1%	4.0%
Hap Seng Plant	2272		2440		7.4%	1.8%
IOI	44617.65		35907.77		-19.5%	-5.3%
Kwantas	1271.65		748.03		-41.2%	-12.4%

Market Capitalization from 1996 to 2012

Market Capitalisation
	Dec-96		Mar-08		Mar-12
RM			(million)		(million)
Batu Kawan	1544.29		4490.3		8239.47
Boustead			3176.65		5636.46
Chin Teck	484.49		666.95		827.75
Far East Hold	216.16		844.31		1060.43
GENP	1645.77		6082.19		7284.92
Glenealy			546.82		827.15
Hap Seng Plant			2272		2440
IJM Plantations			1942.52		2709.8
IOI	1063.46		44617.65		35907.77
Kim Loong			708.17		829.35
KLK	4561.93		17613.83		25961.72
Kulim	1077.38		2180.19		5583.1
Kwantas	416		1271.65		748.03
SOP	508.08		1140.86		3018.77
THPlant	230.97		615.74		1480.7
TSH			1176.59		2082.34
TWSPlant			1852.04		3000.3
UMCCA	209.38		1031.84		1545.61
Unico			892.15		1055.38
UTDPLT	803		2893.06		5124.26

Market Capitalization Growth rate from 1996 to 2012

Market Capitalisation					Period (Yr)	15
	Dec-96		Mar-12		Change	CAGR
RM	(million)		(million)

United Plantation

United Plantation					Period (Yrs)	15
	Dec-96		Dec-11		Change	CAGR
	millions		millions
Equity	367.65		1996.39		443.01%	11.94%
LT Assets	365.09		1318.23		261.07%	8.94%
C. Assets	130.54		882.15		575.77%	13.58%
LT Liabilities	17.84		88.93		398.49%	11.30%
C. Liabilities	110.13		114.87		4.30%	0.28%
Sales	261.13		1385.47		430.57%	11.77%
Earnings	49.85		373.95		650.15%	14.38%
Interest exp.	0.33		0.03		-90.91%	-14.77%
Market cap	803		5124.26		538.14%	13.15%
D/E ratio	0.08		0.08		0.00%
ROE	13.56%		18.73%		38.15%
P/E	16.11		13.70
P/BV	2.18		2.57
Dividends
DPO ratio	34.50%
DY range	4.3% - 3.1%

Plantation Stocks

Top 10 Plantation Stocks Summary Table (Based on Mkt Cap)

http://www.stocks-unleashed.com/2012/02/top-10-plantation-stocks-summary-table.html

KL Kepong

KL Kepong 4Q net profit up 48% to RM460m, FY RM1.57b
Written by Joseph Chin of theedgemalaysia.com
Wednesday, 23 November 2011 17:25


KUALA LUMPUR (Nov 23): KUALA LUMPUR KEPONG BHD [] (KLK) reported a 48% increase in earnings to RM460.61 million in the fourth quarter ended Sept 30, 2011 from RM311.04 million, boosted by the PLANTATION []s sector and disposal of an associate, Esterol.

It said on Wednesday its revenue increased by 48.9% to RM2.999 billion from RM2.014 billion while its earnings per share were 43.25 sen compared with 29.21 sen. It declared an interim dividend of 70 sen per share versus 45 sen.

“The group's pre-tax profit increased 38.3% to RM599.2 million. The current quarter's result was boosted by the non-recurring surplus of RM200.6 million arising from the disposal of an associate, Esterol, whilst last year's quarter had a writeback of RM76.0 million on the allowance for diminution in value of investment,” it said.

KLK said the plantations sector recorded a 27.7% improvement in profit to RM447.5 million due to better selling prices of commodities and increase in fresh fruit bunches production despite higher production cost and FRS 139's fair value loss of RM27.1 million.

However, the manufacturing sector's performance was adversely impacted by the uncertainties and concerns over the sovereign debt crisis in Europe and global macroeconomic environment which had eroded customers' buying confidence and disrupted the supply and demand pattern.

This sector reported a loss of RM49.3 million (4QFY2010: profit RM26.1 million) with substantial stocks write-down as a result of falling prices and FRS 139's fair value loss of RM33.9 million.

For the financial year ended Sept 30, its earnings jumped 55.2% to RM1.571 billion from RM1.021 billion while its revenue reported a 43.4% increase to RM10.743 billion from RM7.490 billion.

KLK said the Group's pre-tax profit for the financial year at RM2.066 billion had surpassed the preceding year's profit by 49.4%.

The increase in profit was due to a 41.9% surge in plantations profit to RM1.596 billion, driven by strong selling prices of commodities which had over-shadowed the impact of higher production cost.

KLK said the manufacturing sector reported a 40.1% increase in profit to RM201.9 million despite the loss suffered in the fourth quarter.

“The results for the year had benefited from added capacities coming on-stream as well as relatively strong business environment in the earlier part of the year,” it said

It also said retailing profit fell 33.6% to RM18.4 million due to narrower margins and increase in operating cost.

The disposals of two associates, Esterol and Barry Callebaut Malaysia Sdn Bhd (BCM), had generated a total surplus of RM244.0 million.

http://www.theedgemalaysia.com/business-news/196680-flash-kl-kepong-4q-net-profit-up-48-to-rm460m-fy-rm157b.html


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Saturday November 19, 2011

KLK plans downstream and upstream expansion



PETALING JAYA: KL Kepong Bhd (KLK) planned to expand its downstream and upstream business segments for its palm oil businesses amidst sustained palm oil prices above RM3,000.

The company which derives 80% of its net profits from upstream business planned to increase its landbank for oil palm estates from 250,000 ha to 300,000 ha in Indonesia, Papua New Guinea, South America and Africa.

“In the upstream we are a price taker. We also don't want to be too dependent on our upstream that's why when prices drop we have our downstream business and our property division which will help us to sustain any downturn in commodity prices,” said chief executive officer Tan Sri Lee Oi Hian yesterday.

KLK is also planning to build another palm oil mill in Indonesia which would cost about RM120mil in three years in addition to the three mills being built there presently.

“The three new palm oil mills in Indonesia are under construction to meet the growing fresh fruit bunches production from fast maturing areas,” group plantations director Roy K. C. Lim told a media briefing here yesterday.

The refineries in Indonesia have passed the plannnig stage and were about to commence consruction.

KLK had upgraded its two palm oil mills in the country, increasing the capacity in one of the mills.

In the oleochemicals business segment, KLK planned to expand its alcohol plant in Westport, Port Klang which was recently moved from Singapore to Malaysia.

“We have a gearing ratio which is very low with essentially good cashflows and this would give us space to fund our expansion,” Lee said.

“So far fundamentals look good, despite the economic problems in Europe.

Most people are still quite friendly towards palm oil so let's hope that the situation would be able to stay this way. It is a very good basis to believe palm oil prices would stay above RM3,000,” Lee said.

The company's CPO yields per mature ha had dropped in its latest 3QFY2011 to 3.4 tonnes per ha from 4.7 tonnes per ha in FY2010 ended Sept 30, 2010.

However, costs of producing FFB had been on a rising trend since FY2007 to RM200 per tonne in its 3QFY2011.

The company said that it expected to reduce this figure by increasing productivity and efficiency of its manpower.

http://biz.thestar.com.my/news/story.asp?file=/2011/11/19/business/9934512&sec=business

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Published: Friday November 18, 2011 MYT 2:23:00 PM

KLK plans expansion for plantation business


KUALA LUMPUR: Amidst sustained palm oil prices above the RM3,000 level, Kuala Lumpur Kepong Bhd is planning expansion in both its downstream and upstream plantation businesses.

The company said today that it aims to increase its landbank for plantations from 250,000 hectares to 300,000 hectares in countries not limited to Indonesia only.

It also plans to build another palm oil mill in Indonesia, in addition to the three that are already under construction there presently.

http://biz.thestar.com.my/news/story.asp?file=/2011/11/18/business/20111118143630&sec=business

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KLK

Market Watch Recent Financial Results Announcement Date   Financial Yr. End   Qtr   Period End   Revenue RM '000   Profit/Lost RM'000   EPS   Amended 23-Nov-11      30-Sep-11      4   30-Sep-11      2,999,658      475,870      43.25       - 16-Aug-11      30-Sep-11      3   30-Jun-11      2,952,257      455,391      40.64       - 25-May-11      30-Sep-11      2   31-Mar-11      2,368,357      396,818      35.10       - 23-Feb-11      30-Sep-11      1   31-Dec-10      2,422,980      317,452      28.56       - ttm-EPS 147.55 sen Price $21.38 Trailing PE 14.5x

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Batu Kawan

Market Watch
Recent Financial Results

Announcement
Date   Financial
Yr. End   Qtr   Period End   Revenue
RM '000   Profit/Lost
RM'000   EPS   Amended
23-Nov-11      30-Sep-11      4   30-Sep-11      74,253      239,804      56.44       -
16-Aug-11      30-Sep-11      3   30-Jun-11      72,941      212,262      50.33       -
25-May-11      30-Sep-11      2   31-Mar-11      69,776      186,717      44.12       -
23-Feb-11      30-Sep-11      1   31-Dec-10      66,170      148,540      35.41       -

ttm-EPS  186.3 sen
Price $16.20
Trailing PE 8.7 x

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2445.kl KLK
1899.kl Batu Kawan

Comparing share price appreciation of KLK and Batu Kawan

A Brief Look at Boustead Holdings Bhd.

Boustead Holdings Berhad

Business Description:
Boustead Holdings Berhad is engaged in investment holding and oil palm cultivation. It operates in seven segments:

1. Plantation, which is involved in the planting and processing of oil palm, and forestry and oil bulking installations; 
2. Heavy Industries, which is involved in shipbuilding, fabrication of offshore structures, and repair and maintenance of vessels and defense related products; 
3. Property Development; 
4. Property Investment; 
5. Finance and Investment, which is involved in the provision of commercial, Islamic and investment banking services, money broking and others; 
6. Trading, which is involved in warehousing and distribution of fast moving consumer products, and 
7. Manufacturing and Services, which is involved in manufacturing cellulose fiber cement boards and paints, and offering travel and tour related products. 

In 2009, the Company produced 1,106,000 metric tonne (MT) of fresh fruit bunches (FFB) and sold its entire stake in Associates Boustead Bulking Sdn Bhd and Riche Monde Sdn Bhd.

Current Price (1/7/2011): 5.54
2009 Sales 5,392,000,000
Employees: 8,022
Market Cap: 5,208,497,480
Shares Outstanding: 940,162,000
Closely Held Shares: 568,935,789

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
29-Nov-10		31-Dec-10		3	30-Sep-10		1,513,900		124,600		9.77		-
23-Aug-10		31-Dec-10		2	30-Jun-10		1,425,000		161,400		15.68		-
31-May-10		31-Dec-10		1	31-Mar-10		1,553,100		104,200		9.75		-
25-Feb-10		31-Dec-09		4	31-Dec-09		1,481,066		179,322		16.20		-

Estimated EPS for 2011 =  35.21*4/3  =  46.9 sen
At price of 5.54, it is trading at prospective 2011 PE = 5.54 / 0.469 =  11.8 x
Dividend given to date = 27 sen
DY to date = 0.27 / 5.54 = 4.9%

Historical
5 Yr
PE range 7.7 - 13.5
DY range 7.9% - 4.0%

10 Yr
PE range 7.4 - 11.9
DY range 6.3% - 3.6%


Year      DPS    EPS
2003      4.2      18.7
2004      9.0      24.7
2005    10.5      16.2
2006    10.5        8.8
2007    12.3      55.0
2008    20.2      66.9
2009    20.4     36.4
9M10   27.0     35.21    NTA   4.35

Capital changes

2003   1/2 Rights @ RM 1.60 followed by 1/3 Bonus

2009   2/5 Rights @ RM 2.80

Also read;

Boustead (Discussion in Investlah)

Plantation stocks up as CPO climbs

Plantation stocks up as CPO climbs
Tags: Batu Kawan | Boustead | Genting Plantations | IOI Corp | KLK | Kulim | Sime Darby

Written by Surin Murugiah
Monday, 25 October 2010 11:29


KUALA LUMPUR: PLANTATION []-related stocks advanced on Monday, Oct 25 as crude palm oil futures rose Monday morning and was up RM66 per tonne to RM3,071.

At 11.40am, KLK was up 44 sen to RM18.94, Kulim gained 27 sen to RM9.79, Boustead and Batu Kawan were up 24 sen each to RM5.90 and RM15.54 respectively, Genting Plantations rose 14 sen to RM8.58, Sime Darby up eight sen to RM8.88 and IOI Corp added three sen to RM5.82.

http://www.theedgemalaysia.com/business-news/175913-plantation-stocks-up-as-cpo-climbs.html

PLANTATION sector

Pile in as stocks pile up

Tags: Astra Agro | Brokers Call | CIMB Research | CPO | Golden Agri | Indofood Agri | Plantation | Sampoerna Agro | Sime Darby | Wilmar

Written by Financial Daily
Thursday, 12 November 2009 10:46

PLANTATION []s sector
Neutral: Malaysia’s palm oil stock figures for end-October 2009 were above both our and market estimates, which is slightly negative for the sector. However, we are keeping our 2009 crude palm oil (CPO) price forecast of RM2,240 per tonne, which is only a tad higher than the RM2,221 average achieved in 9M09. If this news of a rising stockpile triggers a correction of CPO price and planters’ share prices, investors should snap up the opportunity to accumulate selected plantation stocks ahead of a likely recovery of CPO price, potentially in 1Q10.

We remain neutral on the Malaysian plantation sector and continue to prefer the Singapore planters for their more appealing valuations. Our picks in the region remain Wilmar, Sime Darby, Indofood Agri, Golden Agri, Astra Agro and Sampoerna Agro.

Higher imports and output pushed Malaysia’s palm oil stocks to a 10-month high of 1.97 million tonnes at end-Oct, above market expectations of 1.82 million tonnes and our forecast of 1.72 million tonnes. The discrepancy came largely from a 27.5% month-on-month (m-o-m) uptick in production. We believe the key variances were higher production and imports. These statistics are negative as the rise in inventories will limit CPO price upside in the medium term.

Palm oil stocks are projected to rise further and potentially peak in November. We now estimate that Malaysia’s CPO stock level could increase 3% m-o-m to around 2.03 million tonnes in November, which we think could be the peak instead of our initial expectation of a peak of 1.9 million tonnes. This stems from the unexpected surge in production in October which may not be sustainable as we suspect some harvesting was carried over from the previous month.

Assuming steady crude oil prices, we continue to expect CPO prices to trade within a range of RM2,100 to RM2,300 per tonne in the short term. Despite the higher-than-expected palm oil stockpile, we are sticking to our view that CPO price could rally in 1Q 2010 as demand is expected to pick up, driven by the Chinese New Year festivities, the global economic recovery, lower domestic oilseed crops for India and higher biofuel mandates.

Although stocks appear to be closing in on last year’s record level, the outlook for demand is brighter than a year ago as global economies are on the mend and some governments have set or increased their biodiesel mandates. Also, the higher crude oil price of US$79 (RM267.02) per barrel compared to the year-ago level of US$60 may boost conversion to biodiesel. — CIMB Research, Nov 11


This article appeared in The Edge Financial Daily, November 12, 2009.

http://www.theedgemalaysia.com/business-news/153471-pile-in-as-stocks-pile-up.html