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Author: Tan KW   |   Latest post: Fri, 4 Dec 2020, 4:25 PM

 

COMMENTS ON RIVERVIEW RUBBER ESTATES BERHAD (2542) - louisesinvesting

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FIGURE 1: RIVERVIEW RUBBER ESTATES BERHAD LAST 2 YEARS SHARE PRICE TREND
 
**analysis based on 2018 annual report.
1.       GENERAL INTRO: RIVERVIEW is one of the main oil palm plantations in Malaysia.
 
2.       NOTABLE POINTS:
a.       In 2018 report, main business segments include oil palm plantations and investment holdings. Not involve in fresh fruit bunches (FFB) milling to produce crude palm oil (CPO).
b.      the Group owns four estates in Perak, Malaysia, with total planted area of 2544 hectares
c.       decreased production in current financial year was due to the palms going through a recovery period after a record production in 2017. Labour shortage also contributed to some crop losses.
d.      the investment properties are held in two locations in Perth, Australia, which generate rental income.
 
3.       IS THIS COUNTER A STRONG GROWTH STOCK? 
a.       REVENUE RANGE (million): ~28.66 million in 2018 annual report, this is a low revenue company.
b.      SHARE PRICE: from 2018-2019, share price decreasing from around RM3.50 to RM3.00, probably due to decreasing earnings.
c.       EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from 1.34 to 26.83sen
d.      FUTURE POTENTIAL/PROSPECTS: share price expect to be stable in the next few years
e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 2.52 million, around 0.8% of total assets.
 
4.       IS THIS A STRONG DIVIDEND STOCK?     
a.       DIVIDEND YIELD: in 2018 financial year, RIVERVIEW declared a dividend payout of 6 sen per share to shareholders. The dividend yield amounts to 2.03% only.
b.      CONSISTENCY: consistent dividend payout, last five years (2015-2019) dividends declared range between 3 to 18 sen per share.
c.       DIVIDEND PAYOUT RATIO: RIVERVIEW paid out around 76% of its earnings to shareholders in the form of dividends in the current financial year.
 
5.       IS THE MANAGEMENT PERFORMANCE GOOD?
a.       RETURN ON EQUITY (ROE): in 2018 financial year, RIVERVIEW achieved a low return of shareholders’ equity, at 1.71%.
b.      COST-TO-INCOME RATIO: cost-to-income ratio is high at about 318%.
 
6.       OTHER INDICATORS:
a.       CASH FLOW: cash flow is positive, around RM 37.83 million, equivalent to RM 0.58 per share
b.      SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well supported by institutional investors, there are only 11 institutional investors at top 30 major shareholders list, including few insurance companies and investment funds. Its major shareholders is SUNGEI REAM HOLDINGS SDN BHD (63.01%).
 
Disclaimer: The content of the blog posts are for sharing purpose only. Readers are encouraged to carry out further research and analysis as well as follow up latest update information before making any investment decisions.
 
http://louisesinvesting.blogspot.com/2019/12/comments-on-riverview-rubber-estates.html

 

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Chart Stock Name Last Change Volume 
RVIEW 2.82 -0.13 (4.41%) 7,000 

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