Highlights
KLSE: BKAWAN (1899)       BATU KAWAN BHD MAIN : Plantations
Last Price Today's Change   Day's Range   Trading Volume
16.32   +0.16 (0.99%)  16.18 - 16.32  24,700
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Overview

Market Cap: 7,115 Million
NOSH: 436 Million
Avg Volume (4 weeks):41,890
4 Weeks Range:15.10 - 16.32
4 Weeks Price Volatility (%):
100.00%
52 Weeks Range:15.10 - 17.60
52 Weeks Price Volatility (%):
48.80%
Average Price Target: 16.33
Price Target Upside/Downside: +0.01

Financial Highlight

Latest Quarter | Ann. Date 30-Sep-2019 [#4]  |  19-Nov-2019
Next QR | Est. Ann. Date: 31-Dec-2019  |  18-Feb-2020
T4Q P/E | EY: 19.57  |  5.11%
T4Q DY | Payout %: 0.84%  |  16.43%
T4Q NAPS | P/NAPS: 13.1266  |  1.24
T4Q NP Margin | ROE: 4.53%  |  6.35%

Headlines

Date Subject
20-Nov-2019 Mplus Market Pulse - 20 Nov 2019
29-Aug-2019 《福布斯》亚洲最佳大型企业·6大马公司上榜
28-Aug-2019 Six Malaysian companies make it to Forbes Asia’s list of 'Best Over a Billion'
10-Jul-2019 MPOB Monthly Statistics June 2019 - Inventory Eased Further to 2.42m tonnes
05-Jul-2019 Plantation - CPO Price Up-cycle? – No Clear Indication Yet
16-May-2019 Batu Kawan - Challenging market outlook
10-May-2019 MPOB Monthly Statistics April 2019 - April inventory eased further to 2.73m tonnes
06-Apr-2019 [转贴] [BATU KAWAN BHD:如果毛棕榈油价格能够持续恢复,那么2019财政年度集团种植园的利润前景将会令人满意,预计巴都加湾的油脂化学业务将通过提高产能利用率和提高利润率来维持其业绩] - James的股票投资James Share Investing
19-Feb-2019 PublicInvest Research Headlines - 19 Feb 2019
18-Feb-2019 Batu Kawan - Dragged by lower ASP of palm products
29-Jan-2019 Mplus Market Pulse - 29 Jan 2019

Business Background

Batu Kawan Bhd is a holding company, which through its subsidiaries, harvests palm trees and manufactures and sells rubber and chemical products. The firm organizes itself into three primary segments based on function. The plantations segment, which generates most of Batu Kawan’s revenue, cultivates and processes palm trees and processes the palm trees into both fresh fruit bunches and rubber products. The manufacturing segment sells a variety of chemical-based products including oleochemicals, industrial amides, rubber gloves, and esters. The property development segment engages in the development of commercial and residential property.
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  2 people like this.
 
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 3:44 PM
sheldon Good to see a lot of share buybacks
23/10/2018 2:50 PM
sheldon How come no dividend announcement?
16/11/2018 10:21 AM
sheldon ok - just checked with the Co - dividend announcement in Dec due to changes in cos act
16/11/2018 10:38 AM
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 AM
David *sheldon*, Thanks for checking the dividends with the company. KLK too did not announce the dividends yet.
16/11/2018 1:02 PM
Cipta treasury share close to 10%, perhaps BOD can consider distribute it as dividen?
16/11/2018 6:25 PM
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 3:02 PM
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 9:26 PM
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 10:44 PM
Cipta distribution of treasury share is not bonus issue. The total of share issued is not increase nor diluted EPS.
19/11/2018 9:57 AM
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 4:50 PM
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 6:35 PM
LouiseS The EPS increased 19.7% compared to 2013.
04/12/2018 3:36 PM
sheldon A lot of share buybacks - that's a v good move!
10/12/2018 11:03 PM
Cipta positive way to think: the management view the current price is underestimate the co value.
11/12/2018 2:10 PM
sheldon Also if the co which we own are buying, it's something like we're buying the shares ourselves.
11/12/2018 4:31 PM
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 6:47 PM
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 10:43 PM
Rwkl Sheldon, Choivo is saying KLK is way overpriced and Bkawan is not too far behind.
Anyone going to the AGM.
10/01/2019 7:28 PM
NaasifBaik worth buy in bkawan?
18/01/2019 5:06 PM
neverlose how long can i hold bkawan for?
18/01/2019 5:38 PM
Weeah Wang worth to buy in bkawan?
24/01/2019 3:39 PM
matg Post removed. Why?
24/01/2019 3:45 PM
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%

https://louisesinvesting.blogspot.com/2019/01/preliminary-screening-of-counters-with_25.html
26/01/2019 12:49 PM
sheldon There was a RM696m drop in AFS investment. It was clarified to me that the drop was due to decline in price of shares of a company listed on London Stock Exchange, invested by KLK.
19/02/2019 11:35 AM
Cipta Anyone here attend AGM? any story from there?
19/02/2019 5:28 PM
James Ng https://klse.i3investor.com/blogs/general/201242.jsp
[转贴] [BATU KAWAN BHD:如果毛棕榈油价格能够持续恢复,那么2019财政年度集团种植园的利润前景将会令人满意,预计巴都加湾的油脂化学业务将通过提高产能利用率和提高利润率来维持其业绩] - James的股票投资James Share Investing
06/04/2019 2:11 PM
VSOLAR Sailang Margin All In This company looks very interesting too me... But gearing seems a bit on the high side..
07/04/2019 12:45 PM
Sami_Value palm oil, if recovering will have a very broad +ve impact to our public pockets....last weekend, the FFB price was only at RM280/ton.
08/04/2019 8:21 AM
casion911 wqeawk
17/04/2019 5:14 PM
sheldon Interim dividend announcement around the corner
14/05/2019 3:42 PM
sheldon Wow! A great achievement! The company has reached almost the statutory limit of 10% in share repurchase.

I love this management!
26/10/2019 10:47 PM
Rwkl They were buying from $20 till all the way down to the current price.
With no more bullets, it will be interesting to see.......
14/11/2019 10:48 PM
sheldon Positive on EPS, all things being equal.

They are not permitted to buy any more.
19/11/2019 7:37 AM
sheldon I fear that this Co has all the ingredients to be taken private namely:

1) 10% of shares taken off the market making it cheaper
2) hardly any trading liquidity
3) under appreciated by the investors (i.e. cheap) - resulting that the major shareholder could acquire the Co for a song

We, the non-controlling interest would then have to give up this prized possession with little compensation
19/11/2019 3:40 PM
Fabien "The Efficient Capital Allocater" too illiquid to my liking

in situation like this, shareholders interest tend to be not taken care of. in other words, ignored
19/11/2019 4:18 PM
Rwkl I have always wondered how KLK are so richly valued compared to them. Well I suppose one can view insas and Imari in the same light
19/11/2019 8:54 PM
sheldon Rwkl - I see your point on KLK especially on PE basis but not so much on net asset/share basis relative to other plantation cos.

Despite that B. Kawan with its industrial chemical business & Oleochemical via KLK is quite attractive at today's prices.
20/11/2019 10:57 AM
sheldon Looks like someone's taking my advise really seriously. There's a bump in trading volume.
20/11/2019 3:19 PM
smallfishyu Batu Kawan Bhd’s net profit for the financial year ended September 30, 2019 fell to RM363.49 million from RM365.68 million a year ago.

Revenue declined 15.3 per cent to RM16.05 billion from RM18.95 billion previously, due to weaker performance from the plantation, manufacturing and industrial chemical division, it said in a filing with Bursa Malaysia today.


The group said the plantation segment posted a 19.3 per cent lower revenue of RM6.39 million impacted by weaker crude palm oil (CPO) and palm kernel (PK) prices, while manufacturing reported a 13.2 per cent lower revenue of RM9.19 million.
21/11/2019 3:05 PM
sheldon CPO prices have since increased by a big jump, which should augur well for cash levels and dividends.
24/11/2019 9:30 AM
sheldon My open letter, emailed to the senior management....

Dear Management,

Share Buyback
As a shareholder, I am very very happy with the Batu Kawan (BK) Management for removing 10% of issued shares. A lot of money, time & effort have been put in this endeavor. As you may be aware, the PE ratio is a relative constant for given company which in the case of BK is 13++.

Going forward, if the total earnings can be maintained, BK share price can be expected to rise which is good news for shareholders. It also means better ROE and dividends per share.

DRP - New Capital for what purpose?
The share buyback implies that BK has returned excess capital. Now with DRP the entire process will be reversed. There'll be a surplus capital coming out of the pockets of shareholders. Does BK need this extra money? What will this new capital be for? BK after all has over the years of existence been conservatively reinvesting a big chunk of yearly profits back into the business.

Perhaps there an intention to privatise BK?

Let's enjoy life
I certainly need the cash from dividends and I'm sure most of the shareholders also want this twice a year cash for enjoyment & settlement of bills. I'm aware I've a choice but I do not want it at the expense of diluting my stake. Dear major shareholders, please let's enjoy life and not plough-back every excess penny that you get.

Getting Richer Without DRP
At this current state of affairs without DRP, I can reasonably infer that going forward, the share price will appreciate for this well-run company by simply maintaining the earnings. Shareholders will get to spend the entire dividend money (or diversify and invest it another company) and without the concern of dilution.

Please do take note. If you have valid reasons for this, I'd like to hear it.

TQ
27/11/2019 5:43 PM
Cipta hi Sheldon, even senior management see your plea here they will pretend don't know unless you bring it up in the coming AGM for them to answer.
29/11/2019 4:04 PM
sheldon AGM not announced yet i understand
29/11/2019 10:53 PM
sheldon Gallop on baby!!
09/12/2019 12:11 PM
DickyMe How shameful. Once this stock traded at more than RM 100 per share, today selling at goreng pisang price.
09/12/2019 6:06 PM
sheldon DickyMe How shameful. Once this stock traded at more than RM 100 per share, today selling at goreng pisang price.

I doubt it. Even if it had then perhaps there must have been a bonus issue and/or share split.
09/12/2019 11:06 PM
DickyMe In doubt, normally they do check up. Fly back to 40 years ago. The current data is limited. Go to library and pore through old newspaper. Those days no computer. It is not bonus issue or splits which caused the slide but politic and policies since 1980s. You must thank Dr. Mahatir for killing good companies.
10/12/2019 3:11 PM
sheldon This is the response to my open letter I got from the management of BK ...

Sorry for the late reply.

BKB has been investing in several property development projects in Australia with further capital commitments and BKB is also looking into other investment opportunities. Besides, BKB Chemical Group is embarking on several projects i.e. building on-site co-generation as reported in last year’s annual report and investing in better technology in its key process in the chlor-alkali operation.

Save for the above, the DRP will provide shareholders the opportunity to enhance their equity participation in the Company at a discounted price over long term.


Best regards,


Goh Swee Eng

Chief Financial Officer/Company Secretary
11/12/2019 11:04 AM


 

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