KLSE: BKAWAN (1899)       BATU KAWAN BHD MAIN : Plantations
Last Price Today's Change   Day's Range   Trading Volume
17.30   -0.02 (0.12%)  17.30 - 17.30  33,700
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  fazil3801 likes this.
nikicheong What is the point of a company like Batu Kawan? It just owns other businesses like KLK and not running its own operations.

Also it owns 47% of KLK, it doesn't even worth that much based on market cap, how come?
24/04/2017 22:17
sosfinance Batu Kawan is undervalued. It does has its own biz (please check carefully, its own plantation and manufacturing), but small compared to KLK.

KLK's market cap is about RM27b. B.Kawan 47% ownership is about RM12.7b.

BKawan's market cap is RM8.2b @ RM19.00 per share. B.Kawan's existing biz is worth about RM2b (please check). So, BKawan's ownership in KLK will be RM6.2b (8.2 - 2) while it should be reflected at RM12.7b, it is undervalued at RM6.5b (12.7 - 6.2)(far better than the execution risk for IPP under construction, biz in the future, as it is a traded shares).

BKawan DY is about 3.5%.

That is why, the Company buyback as much as RM30m at about RM19+. Plantation is not in the limelight at the moment. Give it some time, it will close the gap. Even if we used the EV/mature ha, it is about RM50-55,000 per ha, it is on the lower band of RM60k - 100k per mature ha for large plantation companies listed.
03/05/2017 12:09


22/05/2017 23:13
sheldon The main issue plaguing Batu Kawan and the like is the spinners giving a bad name to CPO from the health angle even though it's proven that it's neutral at worst. I consume the cooking oil at home. Obviously the Malaysian eateries use palm oil in their cooking as well. I eat out most of the time and at mid-50s I'm still alive.

Then they pick from the environmental angle. The lobbyists are going all out to paint a negative picture on CPO to probably help the soy industry. It appears that all these so-called good intentions has the same underlying motive - MONEY!
16/07/2017 12:14
sosfinance This stock (BKawan) reminds me of Charlie Munger's Daily Journal investment in Well Fargo in 2009, quietly, and ....... the rest is history.
17/07/2017 14:51
sheldon Feel the awesome power of trade blocks - http://www.thestar.com.my/business/business-news/2017/07/17/malaysia-and-indonesia-may-take-eu-plan-to-curb-palm-oil-imports-to-wto/
17/07/2017 15:36
Stock Kingdom Calvin's prediction on palm oil proved failure again
15/08/2017 19:52
joetay @stock kingdom,

i alrdy gave warning but still got jokers believe in chief joker @calvintaneng and refuse to acknowledge the signs. best is this @chongyu, claim to have 30 yrs experience in plantation industry but actually he doesnt know much after i probe him on fertilizer component prices.
15/08/2017 20:42
Stock Kingdom Calvin, your judgement on palm oil is totally out of way. Not only you don't know how palm oil estates run, you don't know palm oil industry. In fact, you also don't know the relationship between palm oil, soy bean oil, biofuel & crude oil.
17/08/2017 00:34
joetay @stock kingdom,

thats why he is very quiet on palm oil stocks this week.

anyway, those who buy on recommendations/advise do so at their own risks. best is to do own research and intelligence gathering.
17/08/2017 08:24
sheldon Anticipating with glee the usual big dividend announcement in Sep quarterly. Unfortunately it's a long fuse that is paid only in Mar 2018.
12/10/2017 16:19
MWDH SP go up so what? Do they care about Shareholders ?
26/10/2017 07:56
MWDH making more n more money! But div stays the same
26/10/2017 07:57
sheldon These guys that run the show are extremely conservative but I've no complaints.

The low dividend is more than adequately covered by the 7.6% shares bought-back. I have not come across any other PLC with such a significant treasury shareholding.
26/10/2017 12:29
27/10/2017 00:06
sheldon A handsome dividend!
23/11/2017 16:46
888newbie yes. very good management. honest and responsible.
30/11/2017 15:28
sheldon Why DRIP?? Bad move!!
15/01/2018 12:04
DickyMe "Palm oil is a major industry in Southeast Asia. Indonesia and Malaysia employ 3.5 million people to produce 85 per cent of the world’s palm oil with export values exceeding US$40 billion annually."

3.5 million workers but 99% not Malaysians but foreign workers

"With Southeast Asian economies in the balance – especially Indonesia and Malaysia – the fruit producers must address growing concerns about environmental and employee abuses without losing their competitive edge"

Blatant open burning of plantation fields which causes environment pollution, land grabbing which contributes to homelessness and city squatting. and unemployment, when citizens are shoved aside in favour cheap foreign workers.

Toxic greed have met divine intervention and soon palm plantation will follow the fate of rubber.
29/01/2018 10:16
DickyMe "The latest crisis to face the industry’s reputation came this week as European Union lawmakers on Wednesday agreed to draft measures that seek to phase out the use of palm oil as biofuel by 2021. The move sparked fear in smallholders, who account for about 40 per cent of global palm oil production. Hundreds took to the streets in Kuala Lumpur this week to protest against the EU’s changes, saying the decision threatens their livelihoods."


"...draft measures that seek to phase out the use of palm oil as biofuel by 2021. "
29/01/2018 10:24
sheldon I think the underlying motive is partly money. One research said that they should ban butter because the cows that produce the milk which is churned into butter, collectively has a fart that causes massive increases in greenhouse gases.

Would they take such a drastic step to stop consumption and put a lot of farmers into the poor house? No way!!!
04/02/2018 22:59
sheldon Anyone going to the AGM?
07/02/2018 17:15
mf No
08/02/2018 23:16
sheldon I attended the AGM and came out feeling good about the co. According to the chairman, the Europe ban on palm oil in 2021 is only for the diesel content. They would require all members to vote (uncertain as to whether a unanimous or majority consent required).

Any way there's a lot of vested interest at individual country level including Malaysia buying their goods and countries involved in the production of palm diesel. The following report explains the dynamics and reveal some relevant data. Read em..

19/02/2018 22:52
enigmatic why isn't anyone interested in this stock? price is at its lowest this year. it has been consistently paying dividends too, in fact sometimes more than KLK.
24/07/2018 00:59
sheldon KLK is trading at 24++.
Batu Kawan, trading at 17++, enjoyed current quarter profits, YTD profits, PE and dividend yield far better than KLK.
15/08/2018 15:44
sheldon Good to see a lot of share buybacks
23/10/2018 14:50
sheldon How come no dividend announcement?
16/11/2018 10:21
sheldon ok - just checked with the Co - dividend announcement in Dec due to changes in cos act
16/11/2018 10:38
sheldon Looks like shareholders of B Kawan are the strong & silent type. I seem to be the only one raising issues here. I feel like I'm talking to a wall. haha
16/11/2018 11:21
dnlt *sheldon*, Thanks for checking the dividends with the company. KLK too did not announce the dividends yet.
16/11/2018 13:02
Cipta treasury share close to 10%, perhaps BOD can consider distribute it as dividen?
16/11/2018 18:25
sheldon Welcome dnlt.

Cipta - I prefer that the Co cancels the treasury share & go for a capital reduction. Less shares, the better the ROE & EPS.
17/11/2018 15:02
Cipta canceling treasury share may not push up the share price since liquidity becomes lower.
Cancelling treasury share won't create cash to co and shareholders. But distribute it to shareholders will create cash flow to small holders like me. If BKawan distribute 1 treasure for 10 shares, it will be a fat dividends to me. :)
17/11/2018 21:26
sheldon Distribution of treasury shares = bonus shares - it just cuts the cake into smaller pieces. Hence there'll be a drop in share price. Even dividends per share will be much smaller because there'll be too many shares to pay feed dividends.

Share price trades at a relatively fixed multiple to it's earnings. EPS will be diluted and share price will also fall on that basis.

B. Kawan shares after all the painstaking accumulation over the years will be wasted if redistributed.
17/11/2018 22:44
Cipta distribution of treasury share is not bonus issue. The total of share issued is not increase nor diluted EPS.
19/11/2018 09:57
sheldon Actually the effect is like a bonus issue because what was once taken out of circulation is re-issued back to shareholders. The resultant earnings diluted because it is divided by a wider share base.
19/11/2018 16:50
Cipta According to EMH, liquidity will increase the market efficiency. As we can see recently delisted few companies which has low P/E and share price below NAV.
Increase of EPS by cancelling treasury share may not transform to share price close to its actual value. However, distribute it as dividen (if 1 to 10 ratio) will increase its DIY and liquidity. It will create cash flow to shareholders as well.
21/11/2018 18:35
LouiseS The EPS increased 19.7% compared to 2013.
04/12/2018 15:36
sheldon A lot of share buybacks - that's a v good move!
10/12/2018 23:03
Cipta positive way to think: the management view the current price is underestimate the co value.
11/12/2018 14:10
sheldon Also if the co which we own are buying, it's something like we're buying the shares ourselves.
11/12/2018 16:31
Choivo Capital if you value KLK at market value, than yes, it is undervalued.

but i think KLK is way too expensive to begin with. I'll only buy it if it was 50% cheaper.

in which case, not that cheap anymore.
13/12/2018 18:47
sheldon Choivo Capital if you value KLK at market value, than yes, it is undervalued.
but i think KLK is way too expensive to begin with. I'll only buy it if it was 50% cheaper.
in which case, not that cheap anymore.

If you're interested in KLK, then buy Batu Kawan - better value for the earnings
13/12/2018 22:43
Rwkl Sheldon, Choivo is saying KLK is way overpriced and Bkawan is not too far behind.
Anyone going to the AGM.
10/01/2019 19:28
NaasifBaik worth buy in bkawan?
18/01/2019 17:06
neverlose how long can i hold bkawan for?
18/01/2019 17:38
Weeah Wang worth to buy in bkawan?
24/01/2019 15:39
matg Post removed. Why?
24/01/2019 15:45
LouiseS The EPS fluctuated considerably in last five years, from 115 to 203 sen per share, PE around 15, ROE around 6.5% and dividend yield 3.29%

26/01/2019 12:49