Highlights
KLSE: BPLANT (5254)       BOUSTEAD PLANTATIONS BHD MAIN : Plantations
Last Price Today's Change   Day's Range   Trading Volume
0.485   0.00 (0.00%)  0.00 - 0.00  0
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Overview

Market Cap: 1,086 Million
NOSH: 2,240 Million
Avg Volume (4 weeks):7,788,085
4 Weeks Range:0.445 - 0.555
4 Weeks Price Volatility (%):
87.39%
52 Weeks Range:0.20 - 0.775
52 Weeks Price Volatility (%):
62.58%
Average Price Target: 1.78
Price Target Upside/Downside: +1.295

Financial Highlight

Latest Quarter | Ann. Date 30-Jun-2020 [#2]  |  25-Aug-2020
Next QR | Est. Ann. Date: 30-Sep-2020  |  21-Nov-2020
T4Q P/E | EY: -5.19  |  -19.28%
T4Q DY | Payout %: 0.00%  |  - %
T4Q NAPS | P/NAPS: 1.14  |  0.43
T4Q NP Margin | ROE: -34.09%  |  -8.20%

Headlines

Date Subject
14-Oct-2020 Trading Stocks - Boustead Plantations
21-Sep-2020 Traders Brief - Potential 3Q Window Dressing Activities To Cushion Further Fall
15-Sep-2020 Technical Buy - BPLANT (5254)
21-Jul-2020 Trading Stocks - Boustead Plantations
03-Jun-2020 PublicInvest Research Headlines - 3 Jun 2020
03-Jun-2020 Mplus Market Pulse - 3 Jun 2020
28-May-2020 Technical View - Boustead Plantations Bhd (BPLANT, 5254)
08-May-2020 Technical View - Boustead Plantation Bhd (BPLANT, 5254)
06-Feb-2020 Technical Buy - BPLANT (5254)
09-Jan-2020 COMMENTS ON BOUSTEAD PLANTATIONS BERHAD (5254) - louisesinvesting
05-Dec-2019 Daily Market Update - 5 Dec 2019 (CAELY, BPLANT)
02-Dec-2019 Mplus Market Pulse - 2 Dec 2019
25-Nov-2019 Technical Buy - BPLANT (5254)
22-Nov-2019 PublicInvest Research Headlines - 22 Nov 2019

Business Background

Boustead Plantations Bhd owns oil palm plantations in Southeast Asia. It cultivates oil palm and harvests fresh fruit bunches (each bunch is taken from an oil palm tree and can contain several hundred individual fruits) throughout its fields. Research and development investments range from improving crop transportation to developing new oil palm breeds. The company produces and sells crude palm oil, palm kernel, and fresh fruit bunches to maintain flexibility with customers. Additionally, it provides mill design and consultancy services. Examinations play an integral role to the consultancy services and enhance plant production capabilities.
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  5 people like this.
 
terence775 You can also use trading view. Good luck! have taken position here, let's break 3000!
09/10/2020 2:34 PM
Mabel CPO Prices for March to May was Between RM2,100 to RM2,300

From June to August CPO prices have gone up to between RM2,400 and RM2,600

SO IT IS BENEFITTING FROM CPO PRICE SURGE (AND TODAY CPO TOUCHES RM3,000 (OCTOBER 9th 2020)

Meow Meow Meow
09/10/2020 7:26 PM
Invest_888 Thank you all for sharing.
09/10/2020 9:48 PM
RJRF13 BPLANT Q320 FFB production (273,625mt) up 1% vs last quarter, and 14% up vs Q319.

Average CPO price Q319 RM2,026/Mt, Q220 RM2,367/Mt.

Q320 average should be around RM2,700-RM2,800/Mt. Expecting another green when they announce their quarter next month.
09/10/2020 11:30 PM
Mabel Plantation - Key Takeaways From Globoil's Webinar
Date: 9th October 2020

Solvent Extractors Association of India organised a webinar yesterday titled “World Price Outlook for Vegetable Oils and Meals”. There were three speakers i.e. Thomas Mielke from Oil World, Dorab Mistry from Godrej International and James Fry from LMC International. Here are the key takeaways from the webinar: -

James Fry said that rains and good palm prices would encourage better estate maintenance in Malaysia and Indonesia, leading to improved palm production in year 2021F. Rains would boost CPO supply in early-2021F and in the meantime, there would be a seasonal pick-up in production in 4Q2020. Peak palm production may be delayed by a month or two from the usual month of October or November in Malaysia.

In terms of demand, many companies in the HORECA sector (hotels, restaurants and catering) may not survive without government support. Families in low income countries may be trading down to smaller bottles of cooking oil. James Fry did not give a price forecast.

Thomas Mielke said that CPO prices may hover around US$700/tonne (RM2,905/tonne) in 1H2021. He forecasts global production of palm oil to increase by 3.5mil to 4mil tonnes in 2021F. CPO output in Indonesia is estimated to rise by 3mil tonnes in 2021F from about 43mil tonnes in 2020E. Thomas Mielke expects CPO production in Malaysia to be flat in 2021F.

He added that global soybean supply is ample currently in spite of weather-related losses in the US. He expects world soybean supply to increase by 21mil tonnes in 2020E/2021F as Brazil is envisaged to record a record output of 132.5mil tonnes (2019/2020E: 126.5mil tonnes).

Dorab Mistry believes that CPO production in Malaysia would be flat at 19.9mil tonnes in 2020E compared with market expectations of a decline. We believe that this implies that 4Q2020 production would be strong as Malaysia’s CPO output fell by 4.7% YoY in 8M2020. He did not give a production forecast for 2021F although he said that palm supply would be good.

Dorab has suggested a dynamic biodiesel mandate to the Indonesia government whereby if CPO prices exceed US$600/tonne, the biodiesel mandate would be reduced to B25 from B30. If CPO prices exceed US$700/tonne, the biodiesel mandate would be reduced further to B20. With this, the biodiesel mandate would still be implemented but at the same time, the smallholders would not be affected by the CPO export levy. Currently, Indonesia implements the B30 biodiesel mandate with subsidies from the CPO export levy of US$55/tonne.

Mabel Research House
10/10/2020 12:44 PM
yesyesyes i am guessing will form long white candle later .. marilah kawan kawan .. tunggu apa lagi ..
12/10/2020 1:33 PM
ScotFree will there be buy-out
12/10/2020 3:12 PM
yesyesyes hold your tickets tight .. dont throw at 53c .. ppls will thank you later if you do so .
12/10/2020 3:41 PM
Invest_888 Hope can hit 60c.
13/10/2020 8:41 AM
kukubesi this few days just wait the outcome of the politics ...
13/10/2020 12:10 PM
Yippy68 i will not buy and sell at this moment.. wait till Q3 out.
14/10/2020 5:45 AM
Yippy68 CPO RM3000 per ton, hope Q3 will deciare some dividend
14/10/2020 6:08 AM
cccthierry https://www.theedgemarkets.com/article/china-buy-17-million-tonnes-palm-oil-malaysia-until-2023-says-hishammuddin
14/10/2020 12:53 PM
IlmuKhodam Bplant best revenue is at
Q417 - 95,376mt (Rm2,736.00), 93,662mt (Rm2,689.00), 87,806mt (Rm2,418.00)

next report,
Q320 - 89,117mt (Rm2,519.00), 89,318mt (Rm2,815.00), 95,188(Rm2,924.00)

Total production, Q417 = 276,844mt, Q320 = 273,642mt.

Q417 Revenue = 218,163k, Q320 Revenue = ??
14/10/2020 3:57 PM
firerain starting to consolidate around 50cen,gonna collect a bit since coming result gonna be fantastic.
15/10/2020 1:03 AM
power88 drop to 0.485..cpo 2900 up...undervalue
15/10/2020 5:00 PM
power88 2nd QR

For the second quarter of 2020, the Group recorded an unaudited pre-tax profit of RM4.8 million as compared with losses of RM35.3 million for the corresponding quarter last year (excluding the exceptional gain on disposal of Seberang Perai Utara property of RM119.5 million).

Revenue increased by RM43.1 million from RM124.0 million to RM167.1 million due to improved prices of palm products which led to the profit from operations of RM19.4 million.

CPO realised an average selling price of RM2,367 per MT which surpassed last year’s corresponding quarter of RM1,989 by RM378 per MT (19%.) PK's average price of RM1,351 per MT was higher by RM252 per MT (23%).

FFB production for the quarter of 270,383 MT was higher than the production in the second quarter of 2019 of 229,202 MT. FFB yield improved from 3.3 MT/Ha in the second quarter of 2019 to 4.0 MT/Ha in second quarter this year. However, OER reduced from 21.4% to 21.0% whilst KER maintained at 4.3%
15/10/2020 5:07 PM
power88 Q2, production and cpo price
Apr- 82,849 -2,299
May- 86,223 -2,074
Jun - 131,309 -2,411
Total-270,381 ave= 2261 ( QR report 2,367)

Revenue=167m
Cost= 163m
Profit=4m
EPS=0.32

Q3 , production and Cpo price

Jul-89,117 - 2,519
Aug -89,318 - 2,815
Sep- 95,118 -2,924
Total -273,623 ave 2,752

Production up 3,242 =1.19%
Cpo up 491= 21%

Estimate Q3
Revenue= 196m
cost= 163m
profit=33m
EPS =2.45


Q4
OCT - CPO 3000


If cpo can maintain 2750, Bplant annual profit
2.45 eps x4= 9.83 sen

PE 10= 9.83x10= RM 0.983
PE 15=9.83x15 =RM 1.47
15/10/2020 5:43 PM
Yippy68 @Power88 thank for sharing. .
15/10/2020 7:03 PM
johoran collect before up...as long as cpo can maintain 2600 above..
Q3 & Q4 profit sure sky high..share price will follow..
15/10/2020 9:47 PM
power88 Soybean up... tomorrow cpo will follow
15/10/2020 11:42 PM
loyalok https://www.thestar.com.my/business/business-news/2020/10/17/higher-cpo-prices-bring-cheer-for-boustead
17/10/2020 9:01 AM
Mikecyc # Boustead Plantations

75,000 hectare x 2.471 = 185,325 acres

FY14 to FY19 average revenue =3961.7/6 = 660.28 million

> 1 acre generate RM 3,562.82

# MHC :

Plantations = 33,000 acres


FY14 to FY19 average revenue =2001.4/6 = 333.57 million

> 1 acre generate RM 10,108.18


---


Refer to FY20 Q2 ended June :


a) Financial assets

Trade and other receivables 90,382,000

Cash and bank balances 48,842,000


total = 139,224,000

b) Financial liabilities

Loans and borrowings 1,361,756,000

Trade and other payables 90,882,000

Lease liabilities --

total = 1,452,638,000


a) - b ) = ( 1,313,414,000 )

Haha no wander article said intend to sell parcel of land ..
17/10/2020 11:10 AM
Tang Khangseng I agree with what Mike said, a lot of plantation counters with huge debt especially BPLANT high debt + high borrowing cost. This is one of the very critical area to monitor for many counter in the next few quarters, ppl will only come back when the company turn to net cash.
17/10/2020 8:19 PM
YJ Liew @Mikecyc, then how about its RM4.2 Billion assets? cash flows? you can't judge a company's health as simple as financial assets - financial liabilities...do you mean that a company shldn't have any debts? If a company cash rich, what you going to do with that money? put in the bank where interest is at all time low?? Bplant don't enough cash flow to serve its debts? By the way, you know what are the debts or not? Good debts or bad debts?! Don't mislead people!
18/10/2020 8:16 AM
invest icon Assumed the loan interest is 4.5% pa. Yearly interest for 1.36Bn is only 61m. The company has average yearly revenue of 660m. Interest is only Less than 10% of the revenue. Is very healthy.
18/10/2020 2:30 PM
power88 As long as cpo above 2700... cash flow soon become good
18/10/2020 6:01 PM
johoran @Mikecyc...pls do compare ,KLK,IOI, FGV, SIMEPLT, SOP and BPLANT
18/10/2020 6:25 PM
Tang Khangseng @Invest Icon, not sure how did you came out that it is not critical, for me 61mil in paying interest/ year is definitely a lot for a company that making RM~600-700mil/year. Imagine this, let’s assume a fresh graduate make RM3000/ month and RM300 goes to interest payment for PTPTN alone, die lah...on the other side, a company director make RM30k/ month paying an interest fee of RM300, that is sap sap water right? My humble opinion based on limited no. of years in the market is that the company asset has nothing to do with you until they sell it and you get part from it. Seriously, I will monitor its debt level closely moving forward in the next few quarters. It should generate enough cash to reduce its debt if CPO price is sustainable...
18/10/2020 7:12 PM
qinvestor To each his own, on their views and opinions, BPLANT made a decision few years ago to buy lots of land, incurring debts, mine humble view:
1. Land might be slightly above fair value, but it is LAND, better than cash, so when they leveraged got funds and buy land, I think overall good decision, and please pray tell which currency in the world is worth having, all are FIAT money…
2. What are the chances of BPLANT defaulting?
- As long as CPO is above RM2.2k they are able to maintain production of 60k MT of CPO per quarter, they can cover the interest
- Indonesia & Malaysia don’t have lots of new land for growing palm oil, population is growing, food demand will also grow, thus CPO in long term will be on uptrend
- They have more than 224 hectares of ripe land for development, which eventually can be used to pare down the debts, or hopefully can look to buy more land!!
Buying land is a long term play, and it is not easy to buy land now, I think the rich know, money is getting smaller now, so ppl put a very high price on their land/asset, and even got buyer they still not willing to sell. To me investing in BPLANT is investing in Land, and Land that will continue to bring returns…
18/10/2020 9:12 PM
johoran For Boustead Plantations, some plans in the pipeline will include venturing into new areas of businesses related to agribusiness, apart from oil palm plantations.

“We may look into cultivation of other commercial cash crops such as coconuts in our estates, where oil palm planting is marginally suitable,” he says.

At the same time, the group is already providing mill advisory services where it consults on the construction of palm oil mills across Malaysia and Indonesia.

On Boustead Plantations’ ongoing transformation programme, which kicked-off in October last year, Ibrahim says the group is looking at completing the first phase by the second quarter of next year.

According to Ibrahim, the tangible progress made under the transformation programme includes the streamlining of the group’s estate management.

Boustead Plantations’ land bank spans 98,200ha, of which 79,400ha is cultivated with oil palm. It manages 48 oil palm estates and 10 palm oil mills nationwide.

“We have consolidated all our estates and mills into eight business units, each spearheaded by a head of business unit. The head is accountable for the profit and loss recorded by their business unit,” he adds.

To further support the eight business units, Boustead Plantations has established centralised specialist services to drive strategic initiatives such as replanting, performance management, mechanisation, engineering support and workforce management.

“Now we have better control of our procurement processes and cost as a result of the centralisation of our procurement and vendor management activities,” says Ibrahim.

As part of its transformation initiative, he notes that the group’s tender process is also more transparent, which involves a thorough review by a committee that has been set up to oversee major purchases.

Asked on the difference in the operational structure of Boustead Plantations compared with previously, Ibrahim says: “We are focusing on improving productivity and increasing effectiveness with key initiatives such as mechanisation of operations, increased labour productivity, improved mill utilisation and cost competitiveness.”
18/10/2020 10:48 PM
johoran For its mill operations, he says one of the efforts to improve productivity is by increasing the purchase of external crops from third parties.

“Until August, about 117,300 tonnes of our crops were external crops, which was an increase of 11% compared with 105,600 tonnes in 2019,” notes Ibrahim.
18/10/2020 10:48 PM
johoran NEXT QR sure profit better
18/10/2020 10:49 PM
invest icon @Tang Khangseng Obviously you are not businessmen and don’t have any FA knowledge. Take for eg, When YTL REIT have about RM600M debt and revenue less than RM200m per annum with interest to pay amounting to RM87M a year. All analysts still give a good rating on their good cash flow and healthy financial status. A company is good or not depending on whether they have healthy positive cash flow or not, profit can cover interest and potential to growth.
18/10/2020 11:24 PM
invest icon @Tang Khangseng, employee’s salary of Rm3000 still have to bear his living expenses beside interest for PTPTN. A company’s profit means is net after all overhead including interest is also paid off. You are comparing an income before expenses with net income after all expenses. Think carefully before compare...
18/10/2020 11:31 PM
invest icon Revenue for Bplant is definitely very strong in near future. What I’m worry that can reduce their profit after tax is windfall tax that may impose when CPO exceeding RM2,500. Heard the Oil Palm association is still negotiating with government for the exemption of windfall tax
18/10/2020 11:35 PM
Yippy68 well said gentlemen, so, buying at 49 sen now should be cheap right.?
19/10/2020 7:40 AM
speakup govt short of money
windfall tax not likely to be removed
19/10/2020 5:53 PM
speakup govt kasi banyak BPH BSH
now need cash
windfall tax is cash for govt
19/10/2020 5:53 PM
Tang Khangseng @Invest Icon, I took revenue ~600-700mil/year = engineer salary RM3k*13. Yes, I’m not a businessman nor good in FA but just voiced out my opinion and concern as an investor in BPLANT. Also share what other should watch out and know what they are buy into. It would be great to see the debt of the company can be slowly reduced in the next few quarters, follow by giving out dividend, this would be the sure direction I think everyone want to see.
19/10/2020 8:22 PM
Yippy68 may be selling off a piece of prime land may solve some problem, but at this time who want to buy.
20/10/2020 4:23 AM
YJ Liew dun understand what's the concern here...having debts doesn't mean it's bad...it all depends on whether it's good or bad debts. Serviceable good debts, profitable business, healthy cash flows indicates the company is still financially ok. Adding up the high spike of CPO prices now and demand, BPLANT will be earning in the next 2 quarters. The reason why the share price is down is because of contra players, market goreng covid related stocks like LKL or TOPGLOV and top players pushing down to buy more later. BPLANT for sure will go up later in Nov.
20/10/2020 9:01 AM
invest icon Why Rich is getting richer and poor getting poorer? Because rich man always borrow more money to invest when ever there is opportunity, But poor man always worry about having debt and his money with to lend it to rich man. This is why Rich always has huge debt.

you can see from an extremely cash rich Apple who cash can actually buy over 32 largest banks in Europe but still borrow more than 10 billions from market. What's reasons? Simply because interest is too cheap compare to investment return.
20/10/2020 9:27 AM
YJ Liew correct! No point having no debts and cash rich! with cash sitting in the company's books not generating any value over time...Malaysian mindset still stuck in old gen saving mentality where no debts and huge savings is good...
20/10/2020 9:41 AM
Yippy68 it is about the management, with or without business sense. give it to klk, ioi mhc, or ijm, they will turn it to profit almost immediately and they will goreng it to 3.00. sorry , this is GLC...
20/10/2020 10:00 AM
power88 0.48.. collect
20/10/2020 10:06 AM
power88 soybean oil price still good.. Cpo will follow
20/10/2020 10:19 AM
power88 Cpo
OCT-3000

Nov- 2888

Dec - 2825

Q4 profit still good....
20/10/2020 10:28 AM
CKNG8291 any idea when is the Q4 report is out ?
20/10/2020 12:11 PM
IlmuKhodam 25+/- feb 2021.
20/10/2020 2:49 PM


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