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Overview
Financial Highlight
HeadlinesBusiness Background Sarawak Oil Palms Bhd is a Malaysia based company engaged in the principal activities of investment holding, cultivation of oil palms, and operations of palm oil mills. The primary businesses of the company are oil palm plantation, milling, refining of oil palm products and trading of oil palm products. The operating segments of the group are Oil palm and Property development. Oil palm segment contributes majorly to the group’s revenue. Geographical the company operates in Malaysia and Singapore, of which key revenue is derived from Malaysia.
  calvintaneng SARAWAK Oil Palm Rock solid company Coming months fresh fruit bunches should florish and multiply and Profits should explode upward with Cpo above Rm3500 to Rm4000 a ton The Sop is now very under rated 21/03/2021 11:44 PM  Jonathan Keung Our local players only wants bonus shares or free warrants. Other things comes second. SOP board reading this .please announced bonus proposal 23/03/2021 9:59 AM Jonathan Keung SOP has the reserve and balanced sheet { unexpected bonus shares } like glove producers 23/03/2021 6:02 PM kinuxian https://focusmalaysia.my/top/esg-and-labour-shortage-steals-the-shine-from-malaysias-plantation-stocks/ 24/03/2021 10:21 AM kinuxian Insider collect. Agape International > Ling Lu Kuang, Seems like they able to accumulate their purchase over the days till 6.7mil units and report all together on 19th March. Bursa so lax on these area. 25/03/2021 6:47 PM Gabriel Khoo palm oil price will be supported by sustainable high soybean oil price (by us government). 28/03/2021 8:53 PM Gabriel Khoo https://www.klsescreener.com/v2/news/view/808437 The good for sop they wanted this for so long 29/03/2021 12:39 PM Gabriel Khoo According to industry observers, the potential beneficiaries include Sime Darby Plantation Bhd, Sarawak Oil Palms Bhd, United Plantations Bhd, Carotino Sdn Bhd, a subsidiary of Johor-based JC Chang Group and Harvist by Profes Lipid Sdn Bhd. 30/03/2021 8:49 AM kinuxian I guess most of them tag along back in 2019. http://www.shxwcb.com/333339.html 30/03/2021 8:57 AM calvintaneng TOP 10 REASONS WHY PALM OIL WILL GO INTO A MULTI YEAR BULL RUN SOON, Calvin Tan Research https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-04-01-story-h1543104260-TOP_10_REASONS_WHY_PALM_OIL_WILL_GO_INTO_A_MULTI_YEAR_BULL_RUN_SOON_Cal.jsp 01/04/2021 3:14 PM Jonathan Keung CPO prices turbo charging but plantation counters running with one leg 06/04/2021 7:44 PM bwho even thought CPO is at super high but none of the plantation counter post super profits hopefully this coming MAY reporting seasons they can gives us suprise 06/04/2021 8:05 PM kinuxian The dividend likely to be announced by end of Apr or latest by Jun. Lets see if extra 40%+ upside in CPO on Q1 translate to higher dividend or continue with debt trimming. Based on enning22 profit estimation approaches, these extra 40% (take 10% off as taxes) are pure profit probably equivalent to around 89mil (est 84K tones for Q1). 14/04/2021 12:19 PM calvintaneng SOP is grossly undervalue At peak SOP can reach Rm10.00 a share Now SOP very cheap just buy and hold tight all thru the happy boom months of 2021 21/04/2021 12:43 PM kinuxian This is good writing. Plantation sector is paying lots more taxes vs other industry. Waiving of glove windfall tax is a good wake up call for them to seek for fair tax treatment. https://www.theedgemarkets.com/article/malaysias-palm-oil-yield-continue-declining-labour-shortage How LONG the CPO price can sustained in higher range (anything above 3200) is more important than how high it can go. Usually downtrend starts at Feb/March but not this year. Q1 production is up 3% btw. 21/04/2021 4:40 PM Gabriel Khoo World Bank expects palm oil price at $975/mt in 2021 Palm oil to stay above $900/mt mark till 2025 at least Analysts forecast palm oil prices to fall to $800 levels by June, 2021 21/04/2021 5:26 PM Gabriel Khoo https://www.spglobal.com/platts/en/market-insights/latest-news/agriculture/042121-world-bank-hikes-price-forecast-for-vegetable-oils-on-supply-shortfall 21/04/2021 5:26 PM kinuxian Interesting, world bank economist estimates average selling price may hit 4k (975USD) for 2021. Vs local analysts 2.8 to 3.2 by local analysts. 21/04/2021 5:42 PM Johnzhang Those local analysts from investment banks are analysts working from office . They are not people who indulge or work in the industry and hence don't really know much. 22/04/2021 5:46 PM Gabriel Khoo OTHERS PROPOSED ACQUISITION OF THE REMAINING 40.0% EQUITY INTEREST NOT ALREADY HELD BY SOPB IN SOP PLANTATIONS (SABAJU) SDN. BHD. (SOP SABAJU) FROM SHIN YANG HOLDING SDN. BHD. FOR A TOTAL CASH CONSIDERATION OF RM45.880 MILLION (PROPOSED ACQUISITION) 30/04/2021 10:13 AM kinuxian Good or bad deal? How big is the land under Sabaju Sdn Bhd? Sabaju Estate 1 to 4? 30/04/2021 1:42 PM Johnzhang CPO 3/1/20 =$3000 , 3/5/21 =$4600 Sop 3/1/20 =$4.11. 3/5/21 =$3.83 Make sense ?? 04/05/2021 6:48 AM Gabriel Khoo Sarawak Oil Palm (SOP MK) Sells More In The Spot Market; Benefits From High CPO Prices SOP has submitted relevant documentation to recruit foreign workers to overcome the current labour shortage. As the only biodiesel supplier in the Sarawak region, SOP has completed its biodiesel capacity expansion in expectation of full implementation of the B20 biodiesel programme in Malaysia. As a pure Malaysia plantation player, SOP has stopped forward selling so it will benefit from the high CPO prices. Maintain BUY. Target price: RM4.75. WHAT’S NEW • Is the labour shortage over? Sarawak Oil Palm (SOP) has submitted relevant documentation to the authorities to recruit foreign workers. Besides, incentives have been given to the existing labour to retain them. According to our channel checks, plantation companies are allowed to bring back labour with the approval of the relevant authorities. All COVID-19-related expenses for the labour have to be borne by SOP (estimated cost is RM2m-3m for 2021). SOP said if the process to recruit labour is approved, this would reduce the labour shortage from 30% to below 20%. • Biodiesel capacity expansion. SOP is the only biodiesel supplier in the Sarawak region. Most of Malaysia’s biodiesel is B10 biodiesel, and B20 biodiesel is available only in certain regions as the B20 biodiesel programme has been delayed due to the COVID-19 pandemic. SOP expanded its biodiesel capacity in 2020 from 300,000 tonnes to 600,000 tonnes with the expectation of full implementation of the B20 biodiesel programme in Malaysia. With the new capacity, SOP’s biodiesel plant utilisation rate is at 40-50% (before expansion the utilisation rate was 100% with full supply going for local blending). • Acquisition of remaining 40% equity in SOP Sabaju. SOP has entered into a conditional share sale agreement with Shin Yang Holding for the proposed acquisition with RM45.88m cash, or RM42,000/planted ha. We deem that this is fair compared with earlier transactions in the region. The proposed acquisition is expected to improve SOP’s age profile as SOP Plantations (Sabaju) - SOP Sabaju - consists of young mature oil palms aged 11 years. The purchase consideration will be funded internally, accounting for only about 7% of its total cash. The proposed acquisition is expected to be completed in 2Q21. 04/05/2021 4:04 PM Gabriel Khoo • 2021 outlook − We expect SOP earnings to increase 13% yoy for 2021 on the back of: a) Upstream operation continuing to benefit… Management guided FFB production for 2021 at 1.45m tonnes (7% yoy FFB production growth), taking into consideration the labour shortage. Assuming SOP is able to bring in more foreign workers this year, there will be more upside in its FFB production. But we remain conservative factoring in 4% yoy FFB production growth for 2021. We expect higher yoy earnings from the upstream operation, leveraging on high palm oil product prices. Besides, SOP guided that the group had stopped forward sales and there is some carry forward sales volume from late-20 (<25% of 2020 total production) which will be committed in 2021. b) …but partially mitigated by higher cost of production. The cost of production is expected to be higher yoy in 2021 mainly due to harvesting costs and additional incentives to retain workers. Besides, fertiliser costs have increased significantly due to the rising prices of raw materials. Management guided that SOP managed to secure its 1H volume where prices were flat yoy, but 2H21 fertiliser prices should be higher yoy. c) Lower margins for downstream operations. We expect lower downstream margins for 2021, mainly due to higher feedstock prices. We expect the 1H21 performance to be satisfactory supported by SOP’s strategy in terms of timeliness of delivery of products. EARNINGS REVISION/RISK • Maintain earnings forecast. We maintain our earnings forecasts for 2021-23F at RM244m, RM163m and RM175m respectively. • Assuming CPO price assumption of RM3,500/tonne, SOP’s earnings will increase by 32%. VALUATION/RECOMMENDATION • Maintain BUY with a target price of RM4.75, based on 11x 2021F PE, or -1SD of the stock’s five-year mean. SHARE PRICE CATALYST • Higher-than-expected CPO prices. • Higher-than-expected FFB production and yield. 04/05/2021 4:04 PM stockraider Time to be a little bit more contraian in view of mkt at reasonable high level mah! Warren buffet says inflation is definitely coming in view of low interest interest and speculative sign such as bitcoin, rubbish stock price run up sky high and unrealistic stock valuation & expectation and now raw commodities price run up mah! Bill Gates already bought alot of farmland at low in preparation & in anticipation for the coming armmagedoom coming mah! Why would one the world tech best richest owner switch alot of his investment into farmland, this bcos farmland or value real estate if it is bought at reasonable low price, u cannot go wrong over longterm bcos the availability of land is limited, u cannot manufacture land like bitcoin mah! Coming back to msia the equivalent to farmland is oil plantation, u still can get it real cheap & it is paying u reasonably good dividend loh...this is the best defensive & offensive play like bill gates and warren buffet had highlighted mah! As calvin sifu said timber is at record price & palmoil at record price surely some optimism will spillover to plantation & timber share price mah! But this up 1 to 2 sen is chicken feed mah, why up so little leh ?? Timber & palmoil share r suffering from lack of production mah and also huge impairment losses on its assets mah & previous falling share price mah! Thus they are jittery on recovery of palmoil & timber share loh!! They want to see actual profit b4 jump in loh!! That means if u base on profit...as indicator that means the share price will be lagging loh! Then why promote Wtk leh ?? 1. The owner , directors and insiders already accumulating quietly without fanfare mah! 2. The palmoil & timber production volume of wtk, mhc, jtiasa, boustead, ijm plant already creeping up loh...this is further support by the record price of its commodities. Just imagine u have higher prices & higher volume....that will be a very important sign of higher big profit coming mah! 3. The share price already corrected over 3 yrs of downtrend previously, when there is a big shakeout of all the weak holders...u can only grow more optimistic as time past by loh! 4. Wtk is sitting on some prime land that invested at a very low cost near major town & city, they are good development mah! 5. With all the liquidity & quantitative easing & low interest rate environment, u can see big inflation will be coming loh...!! Wtk in commodities business plus very big cheap land bank is a very good inflation protector mah! Based on the above i think wtk , jayatiasa & ijmplant is the best pick to make profit & this is concur by sifu calvin findings also mah! 04/05/2021 4:05 PM Jonathan Keung SOP in a sweet spot with their oil plan plantings plus forestry . the price breakout needs to be sustain and sweetened with a special dividend or bonus shares { which SOP has the reserve } 04/05/2021 7:51 PM  Mabel Another new record closing for May 2021 FCPO future at RM4,620 from yesterday record of RM4,600...up another RM20.00 What a powerful up trending bull! Beow Beow Beow!!! 04/05/2021 11:13 PM Jonathan Keung Yup. SBO , Corn oils and other soft oils trending higher. Dryness in key planting areas in the US and Brazil will lift & bolster support 05/05/2021 10:41 AM Johnzhang Shit BOD and senior Management! Make 35 sen pay 6 sen dividend only ! Take investors for a ride . 06/05/2021 9:31 AM kinuxian Your div goes to land acquisition and debt reduction. Technically, div is up 20% on Y2Y,from 5 to 6 cents. LoL 06/05/2021 10:53 AM Johnzhang I think it is ok to retain 50% for investment and pay 50% as dividend especially the cashflow in the next 2 financial years is going to be very strong. 6 sen is only 1.5% dividend yield ! I have no respect for leadership and the BOD who don't look after the interest of the general investing public. 06/05/2021 1:35 PM kinuxian https://www.theedgemarkets.com/article/malaysia-cpo-prices-near-rm4700... Local analysist remains neutral on the sector as expected. - "We maintain our average CPO price forecasts of RM2,900/RM2,700 per tonne for 2021/2022" Since the average CPO price past 4 months stood at 3976. On math wise, that's meant CPO price will plumb to average 2361.75 for next 8 months based on their forecast. 06/05/2021 2:14 PM Johnzhang many local analysts know nothing about CPO market dynamic and yet making forecast from thin air. Since months ago they predicted CPO to plunge from March /Apr due to increasing production. Instead of plunging CPO is surging . They still refuse to eat their humble pie and continue to cast doubt on the strength of CPO and continue to work with the media to highlight only the negatives. Seriously lack of professionalism! 06/05/2021 5:06 PM kinuxian Market mispricing (either overrated or underrated) always happened and ppl will find reasons to back it. For instance, bitcoin believer will says there're limited amount of bitcoin. On flips side, one can argue unlimited cryptocurrency can be created using blockchain technology. eg: Ethereum, LiteCoin, Cardano, dogecoin etc. 31 Dec 19, traded at 4.1 with CPO average price 2119, profit 89m 31 Dec 20, traded at 4 with CPO average price 2765, profit 202m Divergence is here to stay as mr market still gave pricing below standard deviation for plantation stock. Eg: RHB research recently revise up the CPO 2021 forecast from 2,650 to 3200, and yet lower their target price. 07/05/2021 9:34 AM Johnzhang Mispricing is deliberately done ? When all the sign point to robust Agri commodity market,. CIMB caution mixed signals on CPO (in star paper)! 07/05/2021 10:19 AM Jonathan Keung SBO , Corn , Wheat all hitting new high .Biden expected to announce additional pro farmers policy. Mid west important battle ground betw GOP and democrats. CPO tailing other soft oils 07/05/2021 10:31 AM kinuxian Mispricing always happened. That's the natural of market as consist of different grp of ppl, diff investment time horizon, timing and ability access and analyst the facts and news, diff investor/trader type, market sentiments, etc. That the reality in stock market. U can see there're stocks with making losses or poor fundamental get goreng up to LU. While stock making robust profit get ignored for years. Hot money is there to amplified the trending stock; When it come, stock get chase above reasonable valuation; when it flow away, stock might fall below its intrinsic value. 07/05/2021 10:51 AM kinuxian If FCPO break the highest in the history at 4 Mar 2008 in coming days or weeks, our PAS minister definitely will come out do the cheering and take credit. As of time I'm typing now, FCPO had hit 2nd highest in man-kind history. :) (In MYR terms) Total transacted value for entire plantation sectors is merely around 62mil. Much lesser than Supermx alone which done 115m. 07/05/2021 11:32 AM  |
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