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Overview
Financial Highlight
Headlines
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.
  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 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 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 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 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 Young1 trader 808, sorry i miss your post. could you please re-post it again? thanks. 04/01/2021 3:57 PM 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 ethan Sigh, quite a huge drop compare to the CPO future. I am accumulating more and treat it as the opportunity for bigger gain. 29/01/2021 9:48 PM ethan When the boss is buying in own share, and with FCPO future is at 3,919.00 for Feb 21, and 3,618.00 for March 21, strong believe that the price setback is just temporary. 05/02/2021 12:53 PM newbie2y i think the main reason was India, being major importer, has increased their import duties on palm oil, effective feb 2021... 10/02/2021 10:44 PM trader808 Unlike IOI which has upstream and downstream industries, KM financial performance is quite straight forward. You can track it in advance with reasonable accuracy by monitoring its monthly output performance that has been announced in Bursa. Here are the numbers 3Q 4Q % Diff FFB 68990 56355 (18.3% ) CPO 75497 56274 (25.4%) PK 19187 12913 (32.6%) profit 33.16 ??? KM will announce its 4Q result in march. Basing on these numbers, it is quite unlikely to match 3Q performance. 13/02/2021 3:58 PM  paperplane seems like mkt mis the PLANTATION , now reprice. all results of plantation superb 16/02/2021 10:50 AM ChongLeeWoon High CPO prices directly benefit plantation companies but share price laggard... look at suppliers of plantation companies, the agrochem companies such as Ancom and Hextar, all engine started and flying up! https://klse.i3investor.com/blogs/ancom4758/2021-02-25-story-h1541264156-ANCOM_THE_NEXT_SUGAR_BABY_OF_BURSA.jsp 28/02/2021 6:56 PM Dragon88 share price of plantation counters will eventually catch up with the CPO price. 11/03/2021 9:22 AM gankc2011 Its share price should climb higher with higher earnings which would results in higher profit. Cash rich company with low debt and dishes out good dividend yield. 18/03/2021 1:11 PM wongck Q4 result holding back, request for extension for 1 month due to covid19 pandemic. Other company able to do meet dateline or even earlier. Unlike in this past Qtr result announced promptly. Keep the good practices to give confidence to investors to trust the company's management team 01/04/2021 2:10 AM  benlim KIM LOONG RESOURCES BERHAD ("KLRB') OR ("THE COMPANY") EXTENSION OF TIME FOR ISSUANCE OF QUARTERLY REPORT FOR THE YEAR ENDED 31 JANUARY 2021 https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3142945 02/04/2021 1:44 PM UndukNgadau Quarterly rpt on consolidated results for the financial period ended 31/01/2021 | https://www.klsescreener.com/v2/announcements/view/3343349 16/04/2021 6:05 PM UndukNgadau From quarter result: Revenue of RM5.13 million has been generated from supplying power to TNB grid for the current year-to-date. 16/04/2021 6:12 PM Johnzhang The company is very generous to pay dividend. For FY 2020 payout 100%. 10/05/2021 10:41 PM Johnzhang FY 21 earning can easily surpass 20 sen per share . If 100% payout is practice, we can expect 20 sen dividend. 10/05/2021 10:45 PM  |
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