Strategic Location: East Kalimantan’s tropical rainforest climate provides the perfect conditions for oil palm growth. The region’s proximity to major shipping routes also enhances MKHOP’s export capabilities.

Optimal Conditions: The company’s plantations are located in areas with consistently high temperatures and abundant rainfall, ideal for oil palm cultivation. The land is generally flat to gently undulating, facilitating operations and contributing to Fresh Fruit Bunch (FFB) yields.

Mature Plantations: MKHOP’s oil palm trees are mostly in the early or mid-years of the prime mature stage, leading to high FFB yields. The company’s FFB yield is relatively high compared to the average FFB yield in East Kalimantan.

Use of Technology: MKHOP uses technology and tools for efficient plantation management, including powered wheelbarrows, all-terrain vehicles, water management systems, and real-time monitoring apps.

CPO Prices: The company’s financial performance is significantly impacted by Crude Palm Oil (CPO) prices. The price of CPO in the first quarter of 2024 has risen above RM4,000 per ton, which could bring huge profits to the company if the price remains high with consistent production.

Business Expansion: The funds raised from the IPO will be used for business expansion, including expanding plantations and purchasing new talent.

Potential Risks: The company’s financial performance is subject to fluctuations in the market prices of CPO and Palm Kernel (PK). Specific climate conditions, such as the La Nina phenomenon, can also affect the harvest of CPO.

Comparison with Peers: When compared with a similar plantation company, MKHOP leads in terms of FFB yield and oil extraction rate, mainly due to the suitable conditions for oil palm cultivation in Indonesia and efficient management of the production process.