Highlights
KLSE: KMLOONG (5027)       KIM LOONG RESOURCES BHD MAIN : Plantations
Last Price Today's Change   Day's Range   Trading Volume
1.53   -0.04 (2.55%)  1.52 - 1.56  905,800
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Overview

Market Cap: 1,431 Million
NOSH: 935 Million
Avg Volume (4 weeks):684,794
4 Weeks Range:1.52 - 1.67
4 Weeks Price Volatility (%):
6.67%
52 Weeks Range:0.895 - 1.67
52 Weeks Price Volatility (%):
81.94%
Average Price Target: 1.74
Price Target Upside/Downside: +0.21
Stamp duty exempted for year 2021

Financial Highlight

Latest Quarter | Ann. Date 31-Oct-2020 [#3]  |  29-Dec-2020
Next QR | Est. Ann. Date: 31-Jan-2021  |  27-Mar-2021
T4Q P/E | EY: 16.46  |  6.07%
T4Q DY | Payout %: 4.57%  |  75.17%
T4Q NAPS | P/NAPS: 0.8184  |  1.87
T4Q NP Margin | ROE: 11.02%  |  11.36%

Headlines

Date Subject
30-Dec-2020 【行家论股/视频】锦隆资源 两年财测上调
02-Oct-2020 Stocks On Radar - Kim Loong Resources (5027)
29-Sep-2020 Kim Loong Resources Berhad - Buoyed By Higher CPO Prices
21-Sep-2020 Traders Brief - Potential 3Q Window Dressing Activities To Cushion Further Fall
17-Sep-2020 M+ Online Technical Focus - 17 September 2020
30-Jun-2020 Kim Loong Resources Berhad - Higher CPO prices offset weaker production
27-May-2020 Technical Buy: KMLOONG (5027)
06-Apr-2020 Trading Stocks - Kim Loong Resources
30-Mar-2020 Kim Loong Resources Bhd - Tepid Production
20-Feb-2020 Kim Loong Resources Bhd - LandBanking Replenishment
20-Feb-2020 PublicInvest Research Headlines - 20 Feb 2020

Business Background

Kim Loong Resources Bhd is a Malaysia based investment holding company mainly engaged in the business activities of cultivation of oil palm, processing of oil palm fresh fruit bunches and marketing of oil palm products. In addition, it is also involved in the activities of processing of oil palm fibre, and biogas and power generation. The primary business segments of the group are Plantation operations and Milling operations. Plantation segment includes cultivation of oil palm activity. Milling segment includes processing and marketing of oil palm products. The group operates in Malaysia and generates the majority of the revenue from the Milling segment.
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  banana86 likes this.
 
sausagex99 Guys palm oil price up does not mean good for palm stock
Proce up bit demamd down
02/12/2020 6:18 AM
02/12/2020 6:18 AM
joerakmo slts: cheapest is INNO.(EV per hectare) Div policy 80%
02/12/2020 9:21 AM
slts buy 3QR pat> 50m
03/12/2020 10:19 AM
slts cpo price another rm10 hit 3400
buy now don wait
04/12/2020 4:18 PM
newbie2y closed above MA10 line, looking forward to next week :)
04/12/2020 9:56 PM
slts do u know kmloong is cash rich 33sen per share = solid fundamentals

short term funds 127m
cash 183m
no. of shares 935m
cash per share = 33sen
loan 12m
06/12/2020 9:18 AM
stockraider What does this cpo price trend below tell U leh ??

Date Settlement Price RM
3 Dec 20 3332
2 Dec 20 3316
1 Dec 20 3347
30 Nov 20 3305
27 Nov 20 3338
26 Nov 20 3227
25 Nov 20 3285
24 Nov 20 3249
23 Nov 20 3326
20 Nov 20 3288

Ans; Rising CPO price and Rising Profit loh!!

Until Sept latest qtr result cpo average is roughly rm 2600 mah!!

December QTR we will be seeing conservatively Average Price Rm 3200, that is 23% increase in price n this increase revenue will all goes to the bottom line profit as there are no cost applicable to revenue generated from price increase loh...!!

Just imagine if Average palm oil price is Rm 2800, U already see super strong profit loh!! But now we are at above 3500 loh...!!

Can U forecast & project what will palmoil company potential profit at rm 3500 cpo leh ?
06/12/2020 11:59 AM
Keyman188 Keyman188 still can recall...


During 2014, when CPO average price was 2780, Plantation index was around 9400 level...


But as per today, CPO average price is standing 3350, Plantation index only 7349 (as per Friday closing) level...


So any CPO expert can guide this naive Keyman188 why so much different ???...


Perhaps CPO price gradually increased but overall oil palm planter companies unable to deliver great performance results !!!......
06/12/2020 12:12 PM
stockraider The main usage for Soy Bean are as food for human & Pigs and the oil for cooking. It is therefore more economical compare to Oil Palm as it has dual purpose. So, market willing to pay higher price for Soy Bean compare to Soy Bean. Soya Bean food for human, Soya meals food for animals & soya oil {SOB} for cooking.

SOB 4th Dec is USD0.3841 per pound or RM0.3841x4 x 2.2x1000 = RM 3380 per MT. Which is lower than RM3502 for CPO on 3rd Dec.

SBO has been traditionally USD50-80 higher price than CPO.

But Since Nov 2020, CPO price overtook SBO by USD15/MT and now is higher by USD30. This happens could be few reasons,

1) Africa Swine Flu have killed many pigs. The main food for pigs are Soy Bean Meals. When number of pigs are low, the demand for Soy Bean also lower. Cause is not economical if just buy to press oil.

2) Market shortage of Soy Bean due to dry weather and Soy Bean Oil from the bean are very much lower % compare to Oil Palm, so, it will not be economical if purely press the Soy Bean just for the Oil but not to feed the pigs and human. So, the SBO become shortage.

3) The main exporter for Soy Bean is shortage of Soy Bean and have to import Soy Bean this year. When SBO shortage, price for SBO increase, CPO price also increase.

4) End November 2020 India reduces Taxes for CPO to 27.5% from 37.5%. This has increase the demand for CPO.

But, what ever reasons are. The most important good CPO price is good to Malaysia, good to Oil Palm planters, good for Oil Palm investors like us ..
06/12/2020 12:44 PM
trader808 Good company but trading at high valuation. At 158 it is trading at PE 20X, Upside potential limited.
06/12/2020 9:41 PM
lcng123 With the current CPO price at RM3,500, the PE no longer at 20x, it was around 10x
07/12/2020 9:19 AM
slts breakout
08/12/2020 9:34 AM
trader808 slowing down and losing steam.
08/12/2020 7:28 PM
slts today will try to do another breakout
hopefully successful
09/12/2020 9:01 AM
stockraider When result out this month, Raider see Rm 1.80 coming loh...!!

Just stay put loh!
09/12/2020 7:57 PM
ethan Dec 2020 fcpo move to new high, time to break the new high and move all the way to RM2.00 ? Gogogog!!
10/12/2020 10:12 PM
EngineeringProfit 100.00....coming
10/12/2020 10:13 PM
slts q3 pat> 50m, jus buy. 1.65 resistant can be broken easily
q4 pat even better with asp 3k+
14/12/2020 2:22 PM
trader808 may be over optimistic projection.
14/12/2020 7:23 PM
trader808 1Q eps 2.45 2Q EPS 3.55 Total eps for the 6 months is 6sen. Given the decline in output it will probably end up with eps 11sen or less for the year. At 160 the company is trading at prospective PE of 14.5x. In my opinion the counter is fairly valued.
17/12/2020 11:07 PM
slts have u consider higher cpo prices
18/12/2020 5:53 AM
ethan @trader808, few points that you may have missed.

1. Plantation land acquisition that expected will increase total FFB and CPO production yield by 10%, which in progress to settle soon.
2. The contribution from the solar in mill that contribute additional income, which i think will increase and achieve better cost saving and revenue.

1Q EPS : 2.45
2Q EPS : 3.55
3Q EPS : between 4 - 5 (Forecast) (Factor in high CPO, but not post acquisition)
4Q EPS : between 4 - 5 (Forecast) (Factor in high CPO, but not post acquisition)

At the low side , total EPS for 4Q maybe 2.45+3.55+4.00+4.00 = 14 cents.
At the high side , total EPS for 4Q can be 2.45+3.55+5.00+5.00 = 16 cents.

Assuming the FAIR PE for KMLOONG is 15 due to its excellence yield and nett cash position and using low side EPS = it should worth RM2.10

Fair PE : 15 , EPS 14 cents, Price = RM2.10
Fair PE : 15 , EPS 16 cents, Price = RM2.40

Do not forget, it also has the nett cash position of about RM0.33 per share (at this moment, but i could be wrong). (Total share: 933,607,000, Current asset (Mostly cash , inventory and receivable): 398,679,000 , Current liability : 94,094,000 )

Formula : (current asset - current liability)/ Total share


Information from latest quarter release:
The Acquisitions are expected to be completed by the end of the year 2020 and management forecasts the FFB production for the financial year ending 31 January 2021 to be about 10% higher than the quantity achieved in the financial year 2020 after taking into consideration of the impending completion of the recent acquisition of landbank and the impact of ongoing replanting programme.

The management expects the milling operations to achieve 10% higher processing quantity as
compared to the financial year 2020. The performance of the milling operations will also be
supplemented by revenue of about RM6 million from supplying power to grid.

Based on past year records, the production of Fresh Fruit Bunches (“FFB”) from our mature estates is normally low during the second quarter of each year and will rise in the third quarter, peak in the fourth quarter and then slowly decline in the first quarter of the following year.

However, the Group’s FFB production for the current quarter had increased by 7,900 MT or 11% to 79,600 MT as compared to the preceding quarter. The increase in production was mainly on the
account of continual peak crop season started in the preceding quarter in the Group’s mature estates in Sabah where about 75% of the Group’s plantations are located.

Not a buy/sell call, but just to share more informed information.
18/12/2020 5:48 PM
trader808 Thank you very much for the invaluable information. It is undeniable that kimloong is a well managed company with healthy balance sheet and strong net cash flow. Its plantation although very small only 15.3k hectares are well managed and efficient.
Kimloong actually derived most of its revenue from mill operation. I believe its OER is better than many other companies in the plantation industry.
I am not aware that it has a grid that hook up with the local authority that could bring in 6m revenue. In additional, It is hope that the high price of CPO trading above Rm3500/ mt will help to mitigate the slight fall in output and yield in the coming qtr announcement. I like kimloong and it has all the ingrediants of a value investing company. Over time its hard work and result and performance and true value will be reflected in the share price.
18/12/2020 8:43 PM
ethan No problem. We share, learn and earn together.

for the OER, it is one of the best and above the national industry average.

In fact, check on quarter release on september, there are few key metrics that lead to the believe that coming quarter will be flying color one.

Page 8 of the quarter report, its CPO production (MT) is 82,260 with average selling price of RM2336. (for May, June, July).

However, the CPO production for (August, Sept ,and Oct ) = 24,610 + 25,254 +25,633 = 75947, which is about 8% drop from the May, June, July.

Source from MPOC suggest that the average of May, June, July = RM2335, which is as per listed in Kimloong Quarter release. So we use the same benchmark for August, Sept and Oct , it is RM2906.

For the CPO itself, for May, June , July (RM'000), it is 192,159 revenue, while for August, Sep, Oct (RM'000) is estimate of 220,702. This is about 15% increase of revenue on the CPO part only. So i believe the revenue increase for coming quarter will be +-3% of 15%.

So to make assumption of the breakeven cost of CPO with other income remain constant,

Revenue from milling = 231,651, profit = 32,042, so it is about 14%, backward tracing, we assume that the cost of milling per mt = RM2000

If the assumption is correct, mean coming quarter profit will be very impressive as RM2900 - RM2000 = Nett RM900 extra profit per mt CPO.

Well , if that's the case and other things remain constants, possible it's eps to be around 9 -11 eps

As i do this calculation in rush and might make wrong assumption, so reader to analyze yourself. If any mistake, appreciate the feedback and will make revision. I am still learning in investment.. cheers!

MPOC source: http://mpoc.org.my/monthly-palm-oil-trade-statistics-2020/
18/12/2020 10:22 PM
newbie2y 1 thing i like abt kmloong is the power generation with biogas, in the annual report, there will be upto 2.0 megawatt commencing 1H21, and another 1.5 pending authority finalisation...all these are additional recurring income :)
18/12/2020 10:37 PM
ooihk899 ethan, Its not that straight forward. This is because the price of FFB purchased by them will increased too. So, the EPS will be lower than your estimation.
18/12/2020 10:56 PM
ethan @ooihk899, yupe.i agree but so far they did consume and use back their own FFB, so there will be some consolidation in between. In fact, what i try to trying to put here is actually as a remarks to see how close my expectation versus the reality.

Oya.. thanks newbie2y for pointing out it is the biogas than solar that in return earn some 6 million in revenue.
18/12/2020 11:21 PM
newbie2y cant wait for the qr in a few days time! cheers!
25/12/2020 3:17 PM
trader808 3rd quarter result announcement is due today. Disappointingly it has not being announced yet.
28/12/2020 7:40 PM
ethan Hope that today the company will release quarter result to see if it match my estimation. Seem a bit late for this quarter
29/12/2020 12:25 AM
ethan too bad. My estimation seem too optimistic, but overall the performance is still impressive. Sigh, got to improve on prediction.
29/12/2020 5:29 PM
Ravin Cheema Atleast got special dividend
29/12/2020 5:31 PM
newbie2y cpo price above 3700, additional estates purchase by next qr, increased cash balances, and more importantly, management is willing to share profits with smallholders like us. thumbs!
29/12/2020 7:02 PM
trader808 The company announced 28.8m profit. This is 109% better than last year corresponding figure, but 13.05% lower compare with the current year preceding quarter. Although the average selling price of Rm2865 /M/T is high, it is not enough to mitigate the huge fall in FFB and CPO output for the 3 months ending Oct 2020. KL has a very strong balance sheet and continues to generate huge cash flow. Considering the current 9 month financial performance and the CPO and FFB output for NOV month, I would envisage the whole year EPS to be around 12.5sen.
The fair value at various reasonably acceptable PE multiples are as follow.
PE 12X IS 150
PE 13X IS 162
PE14X IS 175.

All is not lost. In my opinion,the 3 sen special dividend would sustain the share price.
29/12/2020 7:15 PM
ethan agree with trader808. the expected annualize EPS will be within 12cents to 13cents, as the high CPO price is offset by the huge fall of FFP and CPO output. Considering high CPO price, good dividend payout and prudent management, based on historical PE, i believe it deserve fair PE between 15 - 18, using forecasted annualize EPS 12.5

PE 15x = RM1.88
PE 16x = RM2.00
PE 17x = RM2.13
PE 18x = RM2.25

With consistent dividend payment for this fiscal year , (4 cents + 3 cents + 3 cents (forecast) ), i believe it is could be sustain PE of 15x or 16x.
29/12/2020 9:52 PM
KPH5328 PBT for the current quarter was RM44.64 million which was 6% lower than RM47.27 million
achieved in the preceding quarter ended 31 July 2020. If the insurance compensation of RM7.62
million recognised in the preceding quarter was excluded, the PBT for the current quarter was 13% or RM4.99 million higher
29/12/2020 10:59 PM
trader808 Ethan's view and perception has logic and merits. The current 4 quarter running PE is 17x. May not be a bad idea to Stay invested and collect the dividend
30/12/2020 8:02 AM
bluelight good company to invest
30/12/2020 8:28 AM
ethan Malacca Security latest analysis:

我们重申“买入”评级,目标价从1.74令吉上调至1.91令吉,相等于明财年16倍本益比;一般中型种植股的本益比介于14.5倍至17.5倍。

Malacca Security reiterate buy call , target price revised from RM1.74 to RM1.91 with target PE of 16. The PE range for mid cap plantation should be within PE range 14.5 to 17.5.

Source: https://www.enanyang.my/%E8%A1%8C%E5%AE%B6%E8%AE%BA%E8%82%A1/%E3%80%90%E8%A1%8C%E5%AE%B6%E8%AE%BA%E8%82%A1%E8%A7%86%E9%A2%91%E3%80%91%E9%94%A6%E9%9A%86%E8%B5%84%E6%BA%90-%E4%B8%A4%E5%B9%B4%E8%B4%A2%E6%B5%8B%E4%B8%8A%E8%B0%83
30/12/2020 9:07 PM
newbie2y good read, thanks ethan!
30/12/2020 9:38 PM
ethan Trader808, great sharing. Indeed it happen all the time for those stock with many call warrant, like tnb, takaful etc. So trader808 hypothesis could be correct, and if we able to trade it factor in the risk, the reward could be very good for short period of time.
31/12/2020 12:40 AM
MNawar Thanks Trader808. Just learn something.
31/12/2020 8:37 AM
trader808 The Bears throw 3m shares in one go to press down 9 sen at 4,50pm. There is some truth in my analysis. one must always be mindful and cautious if you are holdings shares in counters in which many call warrants are issued by IB. The fall can be irrational and does not reflect fundamentals in the week that run up to the expiry date. In this case Supermax is a great example. As promise i have deleted the posting because this page is solely reserved for Kim Loong only.
31/12/2020 7:17 PM
Young1 trader 808, sorry i miss your post. could you please re-post it again? thanks.
04/01/2021 3:57 PM
DTZW 1882 CPO Almost Break 4K...
04/01/2021 9:56 PM
paperplane inventory 10 yr low! wow
05/01/2021 9:59 AM
ethan It is coming again to challenge the new high. Target to break thru and may break RM1.70 before the dividend ex-date!! Gogogo.

Beside, lately spotted 2 gems, one is petgas and amway. May discuss in the respective group.
06/01/2021 12:10 PM
aiyooo kikiki lucky taann switch here
06/01/2021 2:49 PM
aiyooo gogogoog
06/01/2021 2:49 PM


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