Highlights
KLSE: BKAWAN (1899)       BATU KAWAN BHD MAIN : Plantations
Last Price Today's Change   Day's Range   Trading Volume
15.50   +0.12 (0.78%)  15.38 - 15.86  5,800
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Overview

Market Cap: 6,877 Million
NOSH: 444 Million
Avg Volume (4 weeks):61,675
4 Weeks Range:13.90 - 15.86
4 Weeks Price Volatility (%):
81.63%
52 Weeks Range:11.00 - 17.68
52 Weeks Price Volatility (%):
67.37%
Average Price Target: 16.33
Price Target Upside/Downside: +0.83

Financial Highlight

Latest Quarter | Ann. Date 31-Mar-2020 [#2]  |  27-May-2020
Next QR | Est. Ann. Date: 30-Jun-2020  |  20-Aug-2020
T4Q P/E | EY: 25.76  |  3.88%
T4Q DY | Payout %: 0.86%  |  22.13%
T4Q NAPS | P/NAPS: 12.3768  |  1.25
T4Q NP Margin | ROE: 3.24%  |  4.86%

Headlines

Date Subject
28-May-2020 Mplus Market Pulse - 28 May 2020
18-Feb-2020 Mplus Market Pulse - 18 Feb 2020
16-Dec-2019 COMMENTS ON BATU KAWAN BERHAD (1899) - louisesinvesting
20-Nov-2019 Mplus Market Pulse - 20 Nov 2019
29-Aug-2019 《福布斯》亚洲最佳大型企业·6大马公司上榜
28-Aug-2019 Six Malaysian companies make it to Forbes Asia’s list of 'Best Over a Billion'
10-Jul-2019 MPOB Monthly Statistics June 2019 - Inventory Eased Further to 2.42m tonnes

Business Background

Batu Kawan Bhd is a holding company, which through its subsidiaries, harvests palm trees and manufactures and sells rubber and chemical products. The firm organizes itself into three primary segments based on function. The plantations segment, which generates most of Batu Kawan’s revenue, cultivates and processes palm trees and processes the palm trees into both fresh fruit bunches and rubber products. The manufacturing segment sells a variety of chemical-based products including oleochemicals, industrial amides, rubber gloves, and esters. The property development segment engages in the development of commercial and residential property.
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  2 people like this.
 
Cipta Anyone here attend AGM? any story from there?
19/02/2019 5:28 PM
James Ng https://klse.i3investor.com/blogs/general/201242.jsp
[转贴] [BATU KAWAN BHD:如果毛棕榈油价格能够持续恢复,那么2019财政年度集团种植园的利润前景将会令人满意,预计巴都加湾的油脂化学业务将通过提高产能利用率和提高利润率来维持其业绩] - James的股票投资James Share Investing
06/04/2019 2:11 PM
VSOLAR Sailang Margin All In This company looks very interesting too me... But gearing seems a bit on the high side..
07/04/2019 12:45 PM
Sami_Value palm oil, if recovering will have a very broad +ve impact to our public pockets....last weekend, the FFB price was only at RM280/ton.
08/04/2019 8:21 AM
casion911 wqeawk
17/04/2019 5:14 PM
sheldon Interim dividend announcement around the corner
14/05/2019 3:42 PM
sheldon Wow! A great achievement! The company has reached almost the statutory limit of 10% in share repurchase.

I love this management!
26/10/2019 10:47 PM
Rwkl They were buying from $20 till all the way down to the current price.
With no more bullets, it will be interesting to see.......
14/11/2019 10:48 PM
sheldon Positive on EPS, all things being equal.

They are not permitted to buy any more.
19/11/2019 7:37 AM
sheldon I fear that this Co has all the ingredients to be taken private namely:

1) 10% of shares taken off the market making it cheaper
2) hardly any trading liquidity
3) under appreciated by the investors (i.e. cheap) - resulting that the major shareholder could acquire the Co for a song

We, the non-controlling interest would then have to give up this prized possession with little compensation
19/11/2019 3:40 PM
Fabien "The Efficient Capital Allocater" too illiquid to my liking

in situation like this, shareholders interest tend to be not taken care of. in other words, ignored
19/11/2019 4:18 PM
Rwkl I have always wondered how KLK are so richly valued compared to them. Well I suppose one can view insas and Imari in the same light
19/11/2019 8:54 PM
sheldon Rwkl - I see your point on KLK especially on PE basis but not so much on net asset/share basis relative to other plantation cos.

Despite that B. Kawan with its industrial chemical business & Oleochemical via KLK is quite attractive at today's prices.
20/11/2019 10:57 AM
sheldon Looks like someone's taking my advise really seriously. There's a bump in trading volume.
20/11/2019 3:19 PM
smallfishyu Batu Kawan Bhd’s net profit for the financial year ended September 30, 2019 fell to RM363.49 million from RM365.68 million a year ago.

Revenue declined 15.3 per cent to RM16.05 billion from RM18.95 billion previously, due to weaker performance from the plantation, manufacturing and industrial chemical division, it said in a filing with Bursa Malaysia today.


The group said the plantation segment posted a 19.3 per cent lower revenue of RM6.39 million impacted by weaker crude palm oil (CPO) and palm kernel (PK) prices, while manufacturing reported a 13.2 per cent lower revenue of RM9.19 million.
21/11/2019 3:05 PM
sheldon CPO prices have since increased by a big jump, which should augur well for cash levels and dividends.
24/11/2019 9:30 AM
sheldon My open letter, emailed to the senior management....

Dear Management,

Share Buyback
As a shareholder, I am very very happy with the Batu Kawan (BK) Management for removing 10% of issued shares. A lot of money, time & effort have been put in this endeavor. As you may be aware, the PE ratio is a relative constant for given company which in the case of BK is 13++.

Going forward, if the total earnings can be maintained, BK share price can be expected to rise which is good news for shareholders. It also means better ROE and dividends per share.

DRP - New Capital for what purpose?
The share buyback implies that BK has returned excess capital. Now with DRP the entire process will be reversed. There'll be a surplus capital coming out of the pockets of shareholders. Does BK need this extra money? What will this new capital be for? BK after all has over the years of existence been conservatively reinvesting a big chunk of yearly profits back into the business.

Perhaps there an intention to privatise BK?

Let's enjoy life
I certainly need the cash from dividends and I'm sure most of the shareholders also want this twice a year cash for enjoyment & settlement of bills. I'm aware I've a choice but I do not want it at the expense of diluting my stake. Dear major shareholders, please let's enjoy life and not plough-back every excess penny that you get.

Getting Richer Without DRP
At this current state of affairs without DRP, I can reasonably infer that going forward, the share price will appreciate for this well-run company by simply maintaining the earnings. Shareholders will get to spend the entire dividend money (or diversify and invest it another company) and without the concern of dilution.

Please do take note. If you have valid reasons for this, I'd like to hear it.

TQ
27/11/2019 5:43 PM
Cipta hi Sheldon, even senior management see your plea here they will pretend don't know unless you bring it up in the coming AGM for them to answer.
29/11/2019 4:04 PM
sheldon AGM not announced yet i understand
29/11/2019 10:53 PM
sheldon Gallop on baby!!
09/12/2019 12:11 PM
DickyMe How shameful. Once this stock traded at more than RM 100 per share, today selling at goreng pisang price.
09/12/2019 6:06 PM
sheldon DickyMe How shameful. Once this stock traded at more than RM 100 per share, today selling at goreng pisang price.

I doubt it. Even if it had then perhaps there must have been a bonus issue and/or share split.
09/12/2019 11:06 PM
DickyMe In doubt, normally they do check up. Fly back to 40 years ago. The current data is limited. Go to library and pore through old newspaper. Those days no computer. It is not bonus issue or splits which caused the slide but politic and policies since 1980s. You must thank Dr. Mahatir for killing good companies.
10/12/2019 3:11 PM
sheldon This is the response to my open letter I got from the management of BK ...

Sorry for the late reply.

BKB has been investing in several property development projects in Australia with further capital commitments and BKB is also looking into other investment opportunities. Besides, BKB Chemical Group is embarking on several projects i.e. building on-site co-generation as reported in last year’s annual report and investing in better technology in its key process in the chlor-alkali operation.

Save for the above, the DRP will provide shareholders the opportunity to enhance their equity participation in the Company at a discounted price over long term.


Best regards,


Goh Swee Eng

Chief Financial Officer/Company Secretary
11/12/2019 11:04 AM
DickyMe Even then it does not justify around 80% capital erosion.
11/12/2019 7:07 PM
sheldon DickyMe - I'm trying to get some info on this erosion which I think is quite possible.

Could you provide some link or reference on this matter?
12/12/2019 9:07 AM
DickyMe I have searched the net but unavailable. Only source is old newspaper.(early 1980), I remember looking at the stocks section - The Star. I don't have the paper now. That's almost 40 years ago.
12/12/2019 10:29 AM
DickyMe WSJ's website historical price begins from June 1994
https://quotes.wsj.com/MY/XKLS/1899/historical-prices

Then it was around RM 2.xxx
12/12/2019 10:45 AM
DickyMe There are some protected research papers and books about Malaysian stocks from 1970s.

Perhaps this link may provide the information if you want to dig deeper
https://www.sciencedirect.com/science/article/pii/S2214845015300703#bib17. Wiley Online Library requires registration, I pass on it.
12/12/2019 11:11 AM
sheldon tq DickyMe
12/12/2019 4:08 PM
sheldon WSJ historical prices reveal some interesting stats.

Based on June 94 price of 2.40 vs Dec 2019 price of 16.60, compounded annual gain (excluding the handsome intermittent dividends) = 7.9%!

If we compare June 94 to Dec 2016, then the gain is 9.4%!!

I hope somebody invents a time tunnel.
12/12/2019 4:45 PM
Rwkl Fell from $100?ll
Wow....1lot,more than 100k? Not many could even dream buying.
I can’t ever recollect that price”
13/12/2019 5:38 PM
sheldon BK main man Tan Sri Dato Lee has been picking up a couple of lots but because of trading illiquidity, that was enough for the share to climb precipitously.

Just speculating - Maybe he wants shareholders to pay more for the DRP
13/12/2019 9:50 PM
LouiseS Batu Kawan derives most of its profits from KLK, which is its own subsidiary. It is also involved in chemicals manufacturing. Batu Kawan's earning performance has been overall decreasing in last five years, whereby its earning per share overall decreased from 126.9 sen to 116 sen. Return on equity is around 7%. Dividend paid to shareholders in 2018 is 55 sen per share. Dividend yield is around 3.3%.

https://louisesinvesting.blogspot.com/2019/12/comments-on-batu-kawan-berhad-1899.html
15/12/2019 11:16 PM
sheldon The devil's in the details but in a nutshell ...

BK is primarily driven by CPO prices given the big chunk of dividends it receives from KLK.

However it is somewhat mitigated by the oppositely correlated impact on downstream oleo chemicals that enjoy improved margins at lower CPO.

Then there's the earnings from industrial chemicals and smaller stuff from property development.
16/12/2019 5:49 AM
Cipta It is logical to keep only one co listed which its business overlapping. A big saving to the holding co if taking either one private.
16/12/2019 10:10 PM
sheldon CPO rise is strangely meteoric but who's complaining!
27/12/2019 3:37 PM
sheldon Is the drop due to some nut making idiotic statements resulting in us losing the high-margin refined palm oil oleo-chemical business?
10/01/2020 5:44 PM
danielleesing ipoh-based Batu Kawan Bhd is widely known as the parent company of locally listed plantation giant Kuala Lumpur Kepong Bhd (KLK). However, many may not know that Batu Kawan is also Malaysia’s largest producer of chlor-alkali chemical products, which include chlorine, caustic soda and hydrochloric acid.

Its chemical plants in Perak and Terengganu have an annual production capacity of 116,000 tonnes of caustic soda. These factories run at an average utilisation rate of close to 90%. The group’s market share is estimated at 55% to 60%.

To be sure, the bulk of Batu Kawan’s profit comes from KLK. Even so, profit attributable to Batu Kawan’s shareholders grew to RM825.2 million in FY2016 from RM483.7 million in FY2013, translating into a three-year compound annual growth rate of nearly 20%. While KLK’s is slightly more impressive at 20.2%, we had imposed a penalty on KLK in The Edge Billion Ringgit Club calculations as its FY2015 net profit fell below the FY2013 base year, resulting in Batu Kawan coming just ahead of KLK for the 2017 BRC award for highest growth in profit after tax over three years.
15/01/2020 1:30 PM
LouiseS Based on comparison of 44 plantation counters listed in Bursa Malaysia, BATU KAWAN is shown to be one of the TOP 8 plantation counters worthy to pay attention to and potentially invest in. BATU KAWAN stands out in performance indicators such as having consistently high earning per share (> 50 sen per share), high NTA per share (RM 14.4 per share) and relatively low P/E ratio of ~20.

https://louisesinvesting.blogspot.com/2020/01/comparison-of-major-plantations.html
20/01/2020 12:28 PM
Cipta Batu Kawan's bleaching earth is dominant in local Palm Oil refinery.
Her subsidiaries' Syntomer is dominant in synthetic Glove manufacturing.
22/01/2020 1:18 PM
sheldon I guess no DRIP take up this round in view of the steep decline in the share price.
31/01/2020 12:22 PM
mf European markets turn negative as coronavirus fears overpower stimulus momentum
19/03/2020 10:58 PM
sheldon The incentive to buy now is the probable 15 sen dividend to be announced in May - a yearly affair (unless management decides that the Co wants to hoard cash)
02/04/2020 3:42 PM
sheldon Come on brother!
Declare that 15 sen dividend.
Go on!
I haven't got all day.
18/05/2020 6:13 AM
sheldon A massive volume by B.Kawan standards with a more than 50k shares purchased at RM14!
27/05/2020 10:02 AM
ttluck It's time to rebound back.. MCO lifted.. Post economy stimulus plan.... India buying back...
04/06/2020 11:51 AM
mf AstraZeneca Reaches Vaccine Supply Deal With Four EU Nations
14/06/2020 7:09 PM
sheldon The good thing management did was to cancel all 10% treasury shares bought and now they're buying back some more heading foe another 10%.

Well done!!
16/06/2020 11:34 AM
pontianak The forest open burning & subsequently anti palm oil campaign by the west really didn’t do good to this industry. If this industry can rise again like the olden days, Malaysia economy be on stronger footing.
23/06/2020 10:44 PM


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