Highlights
KLSE: IJMPLNT (2216)       IJM PLANTATIONS BHD MAIN : Plantations
Last Price Today's Change   Day's Range   Trading Volume
1.63   -0.03 (1.81%)  1.63 - 1.63  2,000
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Overview

Market Cap: 1,435 Million
NOSH: 881 Million
Avg Volume (4 weeks):25,480
4 Weeks Range:1.62 - 1.81
4 Weeks Price Volatility (%):
5.26%
52 Weeks Range:1.30 - 2.61
52 Weeks Price Volatility (%):
25.19%
Average Price Target: 1.53
Price Target Upside/Downside: -0.10

Financial Highlight

Latest Quarter | Ann. Date 31-Dec-2018 [#3]  |  26-Feb-2019
Next QR | Est. Ann. Date: 31-Mar-2019  |  30-May-2019
T4Q P/E | EY: -36.08  |  -2.77%
T4Q DY | Payout %: 3.07%  |  - %
T4Q NAPS | P/NAPS: 1.51  |  1.08
T4Q NP Margin | ROE: -8.65%  |  -2.99%

Headlines

Date Subject
27-Feb-2019 IJM Plant - Core Net Losses Widened in 3QFY19
27-Feb-2019 IJM Plantations - Another loss making quarter
27-Feb-2019 IJM Plantations - Margin Erosion
27-Feb-2019 IJM Plantations Berhad - Second Consecutive Quarter of Losses
27-Feb-2019 IJM Plantations - 9M19 Below Expectations
27-Feb-2019 IJM Plantations - Core net loss widens in 3QFY19 
27-Feb-2019 IJM Plantations - Losses Widen QoQ
11-Feb-2019 Trading Stocks - IJM Plantations
09-Feb-2019 IJM种植 3年财测下修
16-Jan-2019 IJM Plantations - Almost There
03-Jan-2019 Plantation - Seeing Light at the End of the Tunnel
11-Dec-2018 Plantation - Palm oil stock building up
05-Dec-2018 Plantation- Q3 2018 Earnings wraps-up: Challenging outlook ahead
27-Nov-2018 IJM Plantations - Higher Production Cost Compresses Margin
27-Nov-2018 IJM Plantation - 1HFY19: Disappointing Results
27-Nov-2018 IJM Plantations - Challenging outlook ahead
27-Nov-2018 IJM Plantations - Into the red
27-Nov-2018 IJM Plantations - Slips into the red in 2QFY19
26-Nov-2018 IJM Plantations records RM28.3m loss in Q3
19-Nov-2018 李文龙‧当红金不再发光……

Business Background

IJM Plantations Bhd cultivates oil palm plantations in Southeast Asia. It processes and sells crude palm oil, crude palm kernel oil, and palm kernel expeller. The company monitors each plantation to spot trends in yields and production. Plantations owned by IJM have different age profiles, which impacts the expected yields and profitability. Requirements differ between mature and young plantations, and the company implements strategies to identify the differences and reach long-term goals. Additionally, the company provides living quarters for employees and has instituted on-the-job training to enhance productivity and retain talent. In order to increase productivity, the company recruits guest workers and implements site-specific agro-management.
Analyze this stock with MQ Trader system

  3 people like this.
 
necro anak semalam da turun aini mak baru trun??
08/01/2013 09:33
rookie8833 This stock has been sleeping for too long... With CPO prices jumped RM66 yesterday, it may be time to look at IJMPlant again. I remember last year July this stock was trading at around RM3.70
26/08/2013 21:14
dboulevard http://www.theborneopost.com/2013/08/29/ijm-plantations-see-1qfy14-increase-dip-in-indonesian-operations/
20/10/2013 01:24
dboulevard Why have to drop? reason?
10/01/2014 14:35
dboulevard KLK 23.52 23.32 - 23.82 23.78 -0.10 120,100 Delete
KRETAM 0.65 0.65 - 0.66 0.66 -0.005 2,041,000 Delete
GENP 10.68 10.68 - 10.68 10.68 +0.18 100

The whole sector and KLSE has been dropping last week. All the stocks above also dropped from their high. This is a good time to accumulate.
22/01/2014 10:34
iafx consider ioicorp, despite the forex and last year weak cpo, it's core earning STILL up 29.4% q-o-q and 19.3% y-o-y. with this year cpo expected to be above $27xx ~ $28xx, ioicorp earning can jump in fold. ioicorp is also a fully integrated plantation co. (end-to-end producer)

btw, ijmplant and ioicorp r top no.1 & 2 FFB yield company. yr $ yr choice!
28/02/2014 10:39
L. C. Chong IJMPLNT analysis - http://lcchong.wordpress.com/2014/05/09/ijmplntpreliminary-analysis-9-may-2014/
09/05/2014 15:53
iafx oopsss +8c ... :D :D :D
19/05/2014 15:56
dboulevard palm oil price shoots up
09/02/2015 11:25
logitrader http://www.klse.my/financial/quarterResult/YoY/quarter/2216/31-Dec-2014.jsp
27/02/2015 23:54
logitrader http://www.klse.my/financial/quarterResult/YoY/quarter/2216/31-Mar-2015.jsp
26/05/2015 17:46
dboulevard As their Indonesian trees mature, we will see huge increase in fruits
22/06/2015 11:08
khcheah84 EPF acquired share on this on Apr month
25/04/2017 16:37
khcheah84 a good chart pattern on the support level
28/04/2017 08:00
darkstar IJM wins RM342mil contract to build MRT stations

KUALA LUMPUR (June 15): Mass Rapid Transit Corp Sdn Bhd (MRT Corp) has awarded an RM342.18 million contract to IJM Construction Sdn Bhd. The contract involves building stations along the MRT Sungai Buloh-Serdang-Putrajaya (SSP) Line.

In a statement today, Malaysian Government-owned MRT Corp said IJM would build MRT stations at Sri Delima, Kampung Batu, Kentonmen and Jalan Ipoh.

“IJM Construction has a lot of experience working on the MRT project and this will be invaluable as they proceed with working on this newest contract. I believe they will maintain their very good track record with our project and will give their best to perform well for the SSP Line project,” MRT Corp chief executive officer Datuk Seri Shahril Mokhtar said in the statement.

Shahril said MRT Corp selected IJM from seven bidders on best-evaluated tender basis. He said MRT Corp had taken into account the bids' technical, commercial, legal and financial aspects.

IJM had earlier secured contracts from MRT Corp. According to MRT Corp's statement, IJM is also the contractor for the construction of the elevated guideway from Jinjang to Jalan Ipoh.

"Previously, IJM Construction had been awarded two contracts under the MRT Sungai Buloh – Kajang (SBK) Line, which are the construction and completion of the viaduct guideway and other associated works from the Maluri Portal to the Taman Connaught Station (Elevated Section V5), as well as the construction and completion of elevated stations and other associated works at Taman Pertama, Taman Midah, Taman Mutiara and Taman Connaught (Package S5)," MRT Corp said.
15/06/2017 18:12
hipster http://www.theedgemarkets.com/article/ijm-plantations-1q-net-profit-down-3296-forex-loss-lower-cpo-pricing-swaps

how can a plantation stock have forex loss? WTF!
23/08/2017 22:47
cychoy Because CPO is quoted in USD
30/08/2017 16:12
hipster they don't know hedging?
02/09/2017 15:04
kpolee22 PUC (0007)HTF BREAKOUT, BUY NOW BEFORE FLY..
28/12/2017 23:49
nmaa3003 will buy if fall to 1.97.
23/01/2018 14:48
weiyiploh why this share keep dropping?
29/01/2018 12:05
金正恩 I thought RM2.5 is cheap, But keep dropping. What's going? company doesn't share buy back? 52 week share price drop from Rm3.5 to Rm 2.3. IJM board of director can you do something for shareholders?
09/02/2018 15:19
hipster 1. plantation sector have only a neutral rating from most IB
2. unfavorable palm oil news in Europe
3. recent market correction
4. this company is just lame
09/02/2018 15:25
freddiehero run la..
21/02/2018 12:14
freddiehero no hope
21/02/2018 12:14
freddiehero back to 1.5 soon
21/02/2018 12:15
yfchong ok 1.5 can test ... w 60k hectarage... 300ton/hr ffb processing
09/07/2018 14:23
dboulevard Palm oil down because crude oil price dropped, probably global recession coming soon after 10 years of boom
23/11/2018 15:32
Calvin882 Very attractive price..
28/12/2018 19:12
ccmeow https://klse.i3investor.com/m/blog/kenangaresearch/188612.jsp
现在是时候买了。算是捞底吧。
The price has dropped to a very attractive level
can start accumulate at its lowest.
04/01/2019 06:07
Calvin882 https://www.thestar.com.my/business/business-news/2019/01/09/palm-oil-rises-to-near-3-week-top-as-output-gains-ease/
09/01/2019 07:40
Calvin882 https://www.thestar.com.my/business/business-news/2019/01/10/palm-hits-over-2-month-high-on-weak-production-outlook/
10/01/2019 07:56
Abidjan Re: Kenanga's small picture ... In FY20, production yields are expected to improve as c.1,000 Ha comes into maturity. Maybe should look closer at the big picture that the Indon 23,730 Ha that was stated as immature palms in FY13 will eventually be classified as prime palms (8-10 yrs old) to contribute the bulk of production.
21/01/2019 23:42
Abidjan Indonesian palm oil stocks plunging....
Indonesian year-end stocks are seen plummeting by 6% to 3.650 million tons in December to the lowest in 9 months in response to lower production and unchanged domestic consumption in the country, according to median estimate from Bloomberg survey of analysts, refiners and plantation executives. Production is estimated to have fallen 7% to 3.870 million tons, also the lowest in 9 months and dipping below the 4 million ton mark for the first time in 6 months.
22/01/2019 10:55
commonsense IJM Plantation is not the only plantation company that posted bad results in the most recent quarters. If you go through other financial reports, most (if not all) plantation companies are affected by the low CPO price in Jul-Sept period.

In terms of valuation, all plantation stocks are currently trading at a high PE multiple (for those that still managed to record profit) or in IJM Plantation case, negative PE. This is reflective of the downturn cycle of the plantation industry. Don't think that the industry will reverse their down cycle anytime soon given the general demand of the commodity is expected to go down in the future. China for example, is negotiating with US to take in more agriculture products from US which would potentially include soybean (or soybean oil). In general, Chinese consumption of oil would not actually go up that much so the increase of soybean oil import from US to China would actually be at the expense of other oil commodities from other countries (in particular palm oil from Indonesia and Malaysia). Another issue is on the European demand of palm oil which is expected to go down exponentially given the proposed ban of palm oil use in food and transportation industries in the future. They have already agreed to phase out the use of palm oil in transport fuel by 2030. Some countries like France and Norway have already started to move away from palm oil.

If you are still interested in the plantation industry then you should try to look at other companies first (at least until IJM Plantation is really on a stable footing). You will notice that most plantation stocks have fallen but PE valuation is still high. As I mentioned earlier, this is normal given that the industry cycle is currently at the bottom as reflected by the CPO price. It is better for you to do a PE calculation using an average 5 years PAT to take into account the cyclical nature of the industry. With this in mind you need to have a slightly long-term investment horizon when buying into oil plantation companies.

If you are looking to diversify your portfolio outside of IJM Plantation (due to its earnings uncertainties and bleak growth outlook) I would recommend you to look at MBMR.

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.9x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.7x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.

FY19 growth will be driven by the still high demand of the new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. The recent announcement of closure and potential disposal of the loss-making alloy wheel manufacturing business alone is expected to boost the company’s profit by an additional RM10mil to RM20mil. I am projecting a profit to shareholder of RM170 mil for FY19 which at the current price values MBMR at only 5.9x PE.

Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. There are 8 analysts in total covering the stock with most of them having a TP of above RM3 (all have a buy rating). The average TP for the 8 analysts is around RM3.50.

Good luck.
25/01/2019 14:58
Abidjan CS, I guess you like cars for poorer people. I like palm oil as it feeds cars and poorer people.

The growth industry is no longer the auto industry whether it's in Malaysia, EU or China.

The next growth story is coming from India.
The top 10 fastest growing cities in the world for 2019-2035 are in India ... https://economictimes.indiatimes.com/news/economy/indicators/india-claims-top-ten-in-list-of-worlds-fastest-growing-cities/articleshow/66963987.cms

India's annual consumption of palm oil has increased from 5.7 M t in 2009 to 10.6 M t in 2018.
Also, India relies on imports for 60-70% of its edible oil consumption.
Import duty for refined palm oil in India is currently 45% compared to 54% earlier and this may reduce further as it will benefit India's consumers.

Urbanisation of farmers to Indian cities has translated to GDP growth and this will accelerate increase in employment and consumption.
25/01/2019 22:53
Abidjan Worldwide, demand for palm oil continues to rise. India uses the most, 17 percent of the global total, followed by Indonesia, the EU, and China. The United States currently ranks eighth. In 2018 global consumption is expected to reach 65 million tonnes, or roughly 9 kilograms of palm oil per person.
26/01/2019 09:26
commonsense Hi Abidjan,

I find it difficult to come up with a consistent future projection based on the macro economics. There is too much input to be considered. I prefer to focus on an individual company financial performance.

The reason i like MBMR over IJM Plantation is not because i prefer the auto industry over the plantation industry. It's merely based on valuation. MBMR is currently trading at a PE of 6.9x and will be trading lower at 5.9x based on FY19 results backed by the reasons i mentioned above while IJM Plantation is currently having a negative PE. Even if the company managed to deliver a profit of RM115mil in FY19 which is similar to FY17 (where CPO price average at around RM2700 per tonne), at the current price the company would still be valued at 12.6x PE which is double that of MBMR. And this is only if CPO price were to increase to RM2700 which is a doubt given the negativity of the commodity outlook in the future.

Currently Indonesia and Malaysia are the 2 main producers of palm oil. But other regions have also started to explore the commodity especially regions with vast land supply like Africa and the South American countries (Peru for example has started to approach Indonesia companies for palm oil project. If you go to Lima you will be surprise to see a lot of Indonesians in the capital). Given our country's commitment to limit the expansion of the planting of new palm oil area, we might be faced with competitions from other nations to supply to our current existing clients in the future (India, China, African countries, US etc) which will affect the future business of Malaysian palm oil companies like IJM Plantation.

Regards.
30/01/2019 05:06
signalmw already move up from 1.40 to 1.65 with in a month
30/01/2019 08:28
Abidjan Massive spike of palm olein exports to India for Malaysia....
http://www.palmoilanalytics.com/article/5c524468eb3d03736caa975f
04/02/2019 15:09
Abidjan Indonesia's palm oil inventory stocks now almost similar to Malaysia...
http://www.palmoilanalytics.com/article/5c5cd397aa3172b0273d4499
08/02/2019 15:47
shpg22 Take profit and run. O dividend is expected in FY19, judging fr its profit, cash flow and balance sheet. May have right issue soon.
10/02/2019 10:18
nkk53 Left this stock.Dun quite like her Hugh debt 800 mil and management
28/02/2019 11:42


 

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