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Author: Tan KW   |   Latest post: Sat, 28 Nov 2020, 8:29 PM

 

COMMENTS ON PLS PLANTATIONS BERHAD (9695) - louisesinvesting

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FIGURE 1: PLS PLANTATIONS BERHAD LAST 2 YEARS SHARE PRICE TREND
 
**analysis based on 2019 annual report.
1.       GENERAL INTRO: PLS is one of the main oil palm plantations in Malaysia.
 
2.       NOTABLE POINTS:
a.       In 2019 report, PLS’s business segments include operation of oil palm plantations and sale of fresh fruit bunches (FFB), it is not involve in milling FFB to produce crude palm oil (CPO)
b.      the Group operates oil palm estates in Johor with a total planted area of 10,516 hectares and total annual fresh fruit bunches (FFB) production of 127,343 MT.
c.       The reported pre-tax loss of RM24.8 million in the 2019 financial year was mainly attributable to the significant drop of approximately 27% in the average selling prices realised for Fresh Fruit Bunches (“FFB”) despite of the marginal increase in the FFB harvested. The volatile selling price has immensely impacted to the Group’s performance under the plantation segment.
d.      in the 2019 financial year, in addition to oil palm plantations, the Group also diversified into durian businesses aim for export to China, whereby it is operating two durian processing plants in Melaka and Pahang, respectively.
 
3.       IS THIS COUNTER A STRONG GROWTH STOCK? 
a.       REVENUE RANGE (million): ~63.1 million in 2019 annual report, this is a low revenue company.
b.      SHARE PRICE: from 2018-2020, share price has been fluctuating at around RM0.80
c.       EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from -4.53 to 2.06sen
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 5.48 million, around 1% of total assets.
 
4.       IS THIS A STRONG DIVIDEND STOCK?     
a.       DIVIDEND YIELD: in 2019 financial year, PLS did not declare a dividend payout to shareholders.
b.      CONSISTENCY: the dividend payout was not consistent, there was no dividend paid to shareholders in last five years (2015-2019).
c.       DIVIDEND PAYOUT RATIO: N/A
 
5.       IS THE MANAGEMENT PERFORMANCE GOOD?
a.       RETURN ON EQUITY (ROE): in 2019 financial year, PLS achieved a low return of shareholders’ equity, at -8.9%, due to making losses.
b.      COST-TO-INCOME RATIO: N/A
 
6.       OTHER INDICATORS:
a.       CASH FLOW: cash flow is positive, around RM 5.4 million, equivalent to RM 0.02 per share
b.      SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well supported by institutional investors, there are only 7 institutional investors at top 30 major shareholders list, not including insurance companies and investment funds. Its major shareholder are Ekovest Berhad (29.67%), Limbongan Resources Sdn Bhd (21.38%) and Tan Sri Dato’ Lim Kang Yew (10.32%).
 
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/2020/01/comments-on-pls-plantations-berhad-9695.html

 

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