Highlights
KLSE: CBIP (7076)       CB INDUSTRIAL PRODUCT HOLDING BHD MAIN : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
0.90   -0.02 (2.17%)  0.90 - 0.90  5,000
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Overview

Market Cap: 484 Million
NOSH: 538 Million
Avg Volume (4 weeks):217,857
4 Weeks Range:0.86 - 0.97
4 Weeks Price Volatility (%):
36.36%
52 Weeks Range:0.68 - 1.25
52 Weeks Price Volatility (%):
38.60%
Average Price Target: 0.81
Price Target Upside/Downside: -0.09
Stamp duty exempted for year 2020

Financial Highlight

Latest Quarter | Ann. Date 30-Jun-2020 [#2]  |  28-Aug-2020
Next QR | Est. Ann. Date: 30-Sep-2020  |  22-Nov-2020
T4Q P/E | EY: 12.29  |  8.14%
T4Q DY | Payout %: 4.12%  |  50.62%
T4Q NAPS | P/NAPS: 1.337  |  0.67
T4Q NP Margin | ROE: 8.13%  |  5.48%

Headlines

Date Subject
01-Sep-2020 CB Industrial Product - 1HF20 Missed Expectations
01-Sep-2020 CB Industrial Product - Weaker-than-expected 2Q
29-Jul-2020 Plantation - Hints from 2QCY20 Production Data
20-Jul-2020 Plantation - Stockpile Eases Further on Higher Exports
09-Jul-2020 【行家论股/视频】CB工业产品 售地收益694万
07-Jul-2020 CB Industrial Product - Disposal of Its Klang Land
01-Jul-2020 CB Industrial Product - Within Expectations
01-Jul-2020 CB Industrial Product- Headwinds Ahead
13-May-2020 Plantation - Inventory Breaches Above 2.0m MT Mark
13-May-2020 Plantation - Stockpile Surpasses 2m Tonnes
20-Apr-2020 Plantation - Mar-20 Stockpile Rises on Higher Output
13-Apr-2020 Plantation - Inventory Up After Five Consecutive Monthly Declines
13-Apr-2020 Plantation - Mar-20 Stockpile Rises on Higher Output
07-Apr-2020 [转贴] [CB INDUSTRIAL PRODUCT HOLDING BHD:利润增加主要是由于较低的生产成本(较高利润率)和较高的其他利润所致,这些利润来自出售空置物业的收益] - James的股票投资James Share Investing
24-Mar-2020 Trading Stocks - CB Industrial Product
18-Mar-2020 Plantation - Clouded by Uncertainties
16-Mar-2020 M+ Online Technical Focus - 16 March 2020
16-Mar-2020 CB Industrial - Slower capex by planters
28-Feb-2020 CB Industrial Product - Beat Expectations
28-Feb-2020 CB Industrial Product - Lifted by POME Segment

Business Background

CB Industrial Product Holding Bhd provides palm oil mill equipment and spare parts to various mills around the world. In addition, the company developed its patented Continuous Sterilazation palm oil mills, which has turned it into a leading provider of turnkey mill services. The company's three segments include Plantation and Milling, Equipment and Engineering, and Special Purpose Vehicles and Investing. The Plantation and Milling segment cultivates oil palm and produces crude palm oil and palm kernel. The Equipment and Engineering segment, which generates most of the company's revenue, manufactures palm oil equipment and constructs palm oil mills. The Special Purpose Vehicles and Investing arm are comprised of various special purpose vehicle and investment holding subsidiaries.
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  6 people like this.
 
i3gambler There will be RM40m cash for aggressive SBB from now, after selling off an asset to Kossan.
07/07/2020 8:48 AM
Knownfact kinuxian & i3gambler, what is SBB?
07/07/2020 11:02 AM
Knownfact Form the latest AR, I notice that SPV segment Revenue hit a high of 327mil in 2017 and dropped to only 2.7 mil in 2019. The revenue recovered to 6.5mil in 1st Q of 2020. according to HLG report on 1/7, the order book of SPV stand at 75mil as at 31 mar 2020. We can look forward to better contribution from this segment in 2020
07/07/2020 11:14 AM
i3gambler Knownfact,

SBB - Share Buy Back.
07/07/2020 12:18 PM
Knownfact Thanks i3gambler. You spend so much time in analysing shares , don’t really think you’re a gambler
07/07/2020 1:19 PM
Knownfact In the segmental information of the Q report last month, it is good to note that the new segment (Biofuel/Refinery plant) has a revenue of 22.931 mil that generate a profit of 2.322 mil.
08/07/2020 3:55 PM
kinuxian Biofuel is against headwind as brent oil is relative cheap now.
08/07/2020 4:21 PM
Knownfact According to HLG, profitability at biofuel/refinery will likely be impacted by wide palm oil-gas oil (POGO) spread.

The 10% profit margin looks good. The next Q results which covers April to June will see palm oil & crude oil prices at their lowest.

Let's see how the company perform.
09/07/2020 11:41 AM
Pob1234 Has anyone aware that cbip mentioned in their investor presentation that “We have a greenfield landbank of approximately 86,000 hectares, mostly situated in Kalimantan Tengah, Indonesia, of which 8,877 hectares has been planted” . Any idea how big for 86k hectare?
09/07/2020 10:53 PM
i3gambler Pob1234,

No more 86000 Ha, as they sold some of it,
They now have only 32000 Ha.

Look at what they have reported on Total Planted Area
1) 2012: 1700 Ha
2) 2013: 4400 Ha
3) 2014: 6070 Ha
4) 2015: 7348 Ha
5) 2016: 9399 Ha
6) 2017: 11574 Ha
7) 2018: 12700 Ha
8) 2019: 13441 Ha

From the above information, we can guess the age profile of the trees, and I estimate the FFB production is about to increase very much by percentage year on year, also meaning that the plantation become cost effective and profitable.

With 13441 Ha are now planted, there are still 18559 Ha vacant land.
However, I am not sure how much of the 18559 Ha is plantable.
10/07/2020 12:21 PM
Knownfact I don’t like the way the management is putting the plantation and milling in the same segment.

The revenue increased from17mil in 2018 to 50mil in 2019.

Loss increased from 8.7mil to 19.7mil.

Anyway to estimate what we can expect from these two segments.
10/07/2020 9:55 PM
Knownfact How significant is the plantation segment to CBIP?

From last year revenue figures of 50mil, it represent 9.2% of the total of 541mil.

We are definitely looking at a much higher figure this year.

If the company decides to concentrate on engineering and sell off the plantation when they are matured, then we can look forward to some handsome rain fall profit.
13/07/2020 4:50 PM
i3gambler The latest total planted area as mentioned in the Result Update is 13502 ha.

The cost of planting including access and land clearing is about RM16000 per ha, excluding land cost of about RM500 per ha.

So the value of that 32000 ha = 13502*16000 + 32000*500 = RM232m,
or 232m/496m = RM0.47 per share.
14/07/2020 8:46 AM
Knownfact The cost of planting was put under plantation development expenditure before and I think it is now lumped up with property, plant & equipment.

The last reported figure was 253mil in 30/12/2017.

The value of that 32,000 ha is worth very much more than Rm232m
14/07/2020 1:27 PM
Knownfact Anyone have any idea how much is the market value of plantation in Kalimantan?
14/07/2020 1:35 PM
i3gambler Treasury shares:
1) Cancel:
It means the company is healthy, not short of cash.
2) Give to Shareholder:
It is kind of mini bonus issue, wasting administration work, creating odd lot, I don't like.
3) Sell back to market:
It is kind of private placement, get additional cash for development.
14/07/2020 7:46 PM
Knownfact Yes, cancellation of treasury shares will improved the NTA/share.

Liquidity in the company is good at 144mil cash. 200 mil loans is manageable.

Capex is not high beside the development expenditure for plantation.

The Rm40mil sale proceed from disposal of property will ease the cashflow too.
15/07/2020 12:28 PM
Knownfact TPGOG owns a refinery (i.e.pre-treatment) plant with a capacity of 120,000MT/year which have been fully operational since the beginning of
2020 and a biodiesel plant with a capacity of 134,000MT/year which is currently undergoing refurbishment and itis targeted to be fully operational in July 2020 barringany unforeseen delays.

This is a cutting of the chairman statement in the AR.

"In the segmental information of the Q report last month, it is good to note that the new segment (Biofuel/Refinery plant) has a revenue of 22.931 mil that generate a profit of 2.322 mil." only refers to the refinery plant and NOT the biodiesel plant. The revenue & incomes should be quite consistent and doesn't subject to price fluctuation.
15/07/2020 3:24 PM
Knownfact CPO future seems to stabilized above 2,600 in Q3. If plantation segment fall to red in Q2, it should recover in Q3
21/07/2020 4:07 PM
Knownfact Last SBB was at 96.5 on 12/6/2020.

After that the share price started to fall back to 88 despite the fact that CPO was on the raise substantially.

Does this counter only rely on SBB to support its price????

Are they waiting for the AGM on 30/7 before they start SBB again?
24/07/2020 10:43 AM
Davidl Finally back to uptrend!
27/07/2020 2:52 PM
Knownfact slipped back to downtrend?
29/07/2020 3:15 PM
Knownfact back to uptrend with vol
04/08/2020 4:54 PM
liong5651 Tomorrow break RM 1???
04/08/2020 8:37 PM
Knownfact https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3074418

Aggressive SBB started again
05/08/2020 5:09 AM
Knownfact Lack of follow through
06/08/2020 4:47 PM
Knownfact Big volume changing hands at 88 sens. What is going on?
21/08/2020 10:31 AM
wajatimur_28 Yup..I am also monitoring it.. what's going on actually?
21/08/2020 12:44 PM
sakurako boarded 0.88
24/08/2020 11:21 AM
sakurako y it sink once i boarded :'(
25/08/2020 10:52 PM
wajatimur_28 Relax bro...just take a seat...feel the ride roller coaster
26/08/2020 7:47 PM
sakurako waiting for its qr
26/08/2020 9:37 PM
Knownfact Most plantation companies are reporting very good results. Can't see any reasons why CBIP is not doing the same.
27/08/2020 9:44 AM
sakurako the qr should be out any time?
28/08/2020 8:33 AM
kinuxian CBIP is not pure plantation company. By and large still depend their engineering segment and palm oil contribution still relative small. Thus, CPO had limited benefit yet if compared to other plantation stock. MCO might impact their engineering segment instead. I might be wrong.

Do review their Q419 & Q120 performance, palm oil segment is relative disappointing even CPO price hit 2.8 - 3K during Dec 19 to Jan 20.

If you observed long enough, most of the spike was due to SBB, and slowly get pull back.
28/08/2020 10:56 AM
wajatimur_28 Nice qr...ready for take off
28/08/2020 6:15 PM
hng33 first interim dividend 2 sen
28/08/2020 8:07 PM
i3gambler KLK announced on 26th August that they bought 17610 ha planted/plantable land (which 10816 ha planted+6794 ha plantable) in Kalimantan from TSH for USD110.1m, or about 4.2*110.1 = RM462m.

The market price for plantable land in Kalimantan is about RM500 per ha.

Therefore, the price for planted oil palm estate is about
= (462000000 - 500*6794) / 10816 = RM42400 per ha.

CBIP own 13502 ha planted oil palm in Kalimantan,

Assuming the same valuation, it worth = 13502*42400 = RM572m,

CBIP market cap = 492*0.9 = RM443m.
29/08/2020 9:33 AM
Knownfact I am so happy to see many constructive comments on this company.

CBIP plantation segment is still in its investment stage, A lot of its retained profit are put into this segment. I am not too worry about the losses incurred because it has to take care of the cost of planting the new acreage and maintaining the young palms. I hope this can explain why the performance in Q419 & Q120 as well as Q220 are disappointing.

This situation should improve as more palms are coming into maturity with CPO prices maintaining at current prices as evidence by the encouraging improvement in revenue.

'If you observed long enough, most of the spike was due to SBB, and slowly get pull back.' A very good observation by kinuxian. Not many IBs and or retail players are involved at the moment. The day will come.

BTW, SBB also means it is investing in itself. Confidence & patience shown by its management.

As mentioned by i3gambler, they are instead investing big in palm oil plantation. Another good piece of work by i3gambler. When and if they decided to devest from plantation, it will be a BIG rainfall profit to its loyal shareholders. Otherwise, the enhanced future earning from this segment will bring about dividend growth.

The first interim dividend of 2 sens is a pleasant surprise to me. A total of 4 sens equivalent to 4.4% dividend yield for this year will be good.

I am not too sure about the contributions from SPV, oil mill and refinery plant.
01/09/2020 10:03 AM
Knownfact Core Net Profit (CNP)? Both HLG & KENANGA use CNP which is lower than the actual Net profit to underestimate the earning power of CBIP. Both also came out with difference figures which show that they can manipulate the figures to support their wanted conclusion.

ATM, the POE is the core business. I think the importance of POE will be significantly reduced in the coming 2-3 years. Both in term of revenue &Earnings.

HLG gives a sum-of-parts derived TP of RM0.83 which is way below its reported NTAB of 1.46. We all know that the Kalimantan is worth more than that.

Kenanga is giving a higher TP of RM0.87 base on a PE of 11.8. Is it fair? I think that is up to individual to decide.
02/09/2020 1:55 PM
TheSecret http://mpoc.org.my/daily-palm-oil-price/



Whoa !!!

Fcpo breaks new high everyday

Strong indicator of

Palm oil stocks

Bull Run on the way!!!

Load up kaw kaw now!!!
03/09/2020 10:38 AM
Knownfact https://markets.businessinsider.com/commodities/palm-oil-price
03/09/2020 11:44 AM
kinuxian CBIP is not a good proxy for CPO yet.
03/09/2020 3:35 PM
Knownfact For the period ended 30/6/2020, Plantation segment alone (excluding share of results of associates & JV) is 13% of the total revenue. This figure will increase significantly as more palms are planted and matured together with higher CPO prices.
04/09/2020 2:19 PM
i3gambler If the share price is undervalue for long time, I think the boss might take it private, we will lose a good company from Bursa.
08/09/2020 8:38 AM
Knownfact This share is definitely undervalue, just cannot quantify it. The boss has been ploughing back the retained profit for a long time by venturing into SPV, buying refinery, developing the Kalimantan plantation and SBB. My feeling is that it is about time to mature.

Yes, privatisation is a possibility. same as Batu Kawan. But I think the chance of Bkwan is higher. There are many other means that the boss can cash in later.
08/09/2020 10:38 AM
lloydlim Time to accumulate!
20/09/2020 2:04 PM
Knownfact GAP up. Both price & volume shot up.

Is it just a plantation play?
21/09/2020 10:12 AM
OldWiseMan100 O&G Recovery - Serba Dinamik - 40 to 50% Upside Hidden Gem
https://klse.i3investor.com/blogs/ndcg/2020-08-28-story-h1511677632-Serba_Dinamik_40_Upside_Hidden_Gem.jsp
23/09/2020 9:54 AM
FundaStronk haiyaaa still not moving
28/09/2020 11:10 AM


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