I have posted several articles on the bright future of plantation stocks in which I said that all the plantation companies will report historical high profit for the quarter ending March 2022 due to the historical high CPO price.
Teck Guan just reported 42.98 sen EPS for its quarter ending January 2022. It reported 1.48 sen EPS in its previous quarter. Even if it reported double its profit or 100% increase, shareholders should be very happy. But its profit jumped 29 times from 1,48 sen EPS to 42.98 sen EPS. It is leading the way to create history for all plantation stocks.
Yesterday Teck Guan share price jumped 26 sen from Rm 1.37 to close at Rm 1.63. The whole day trading range was Rm 1.57-1.76.
Since all plantation stock prices have sky rocked, I posted an article to advise investors to wait for the price correction to buy. In fact, all plantation stock prices have dropped between 15-20% in the last one month. Looks like a few stock price corrections are overdone.
If you examine the CPO price chart carefully, you will notice that CPO price was around Rm 2,500 per ton for many years. It started to shoot up from Rm 2,000 in May 2,020 to above Rm 7,000 per ton. It has been going up for nearly 2 years. The current price is Rm 5,566 per ton.
The Ukraine-Russia conflict which started on 24 February has affected the export of corn and sun-flower oil. As a result, the war is also helping to push up CPO price.
While writing this article reminds me of my experience in oil palm plantation in Tawau, Sabah because Teck Guan’s plantation is in Tawau.
IJM Plantation history:
About 35 years ago, I was the CEO of Mudajaya Construction. Our company had a road construction contract in the district of Tawau, Sabah. The road passed through a FELDA plantation. The maintenance was very poor, all the palm trees were dying and all the workers quarters were delipidated. FELDA could not managed and sold the whole plantation to us at Rm 1,000 per acre. Subsequently we bought a lot more land from the Government at Rm 760 per acre to plant more oil palm trees.
Subsequently, IGB, Jurutama and Mudajaya jointly listed IJM Corporation Bhd. Dato Goh Chye Keat was the 1st CEO and Tan Sri Krishnan Tan was the 2nd CEO. I was just a Director. When our oil palm plantation company began to make more and more profit every year, we listed IJM Plantation Bhd.
To cut the story short, KLK acquired the 56.2% stake at RM3.10 per share, or a total of RM1.53 billion, after IJM Corp accepted the offer from KLK on 11 June 2021.
Based on the historical high CPO price, all plantation companies will report record profit for the quarter ending March which should be announced before the end of May.
Investors should not miss this golden opportunity to make money from plantation stocks.
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Keng88
Yes Bplant has 220,000 acres of palm oil while jtiasa has 206,000 acres of palm oil which is bigger than Spore land size of 180,000 acres
2022-04-02 17:02
If i am not mistaken, Teck Guan is just a trading company! Maybe they just got lucky for the latest quarter! Best to put your money on real palm oil stocks!
2022-04-02 21:00
Forget Teckguan,
it is just a penny scale building materials trading house with their core operation in Tawau . Family run biz .... ; dont see any value adding action from its CEO .
2022-04-02 21:11
i seriously doubt the author who write this article, he has not do fact finding sufficiently and start to praise Teck guan like Diamond gem.
Sorry, i dont agree at all.
2022-04-02 21:16
if, uncle done enough fact finding , i'm surely follow.
But, this article merely provide individual feeling good that too bold and rough .
Sorry to say
If, investing basing on this article remarks surely going brooke.
2022-04-02 21:19
TECGUAN quick analysis:
Debt/Equity = 1.41 [BIG NO]
Current Ratio = 1.36 [no]
ROE = 26 [yes]
Growth [yes]
Number of negative quarter in last 4Q: 1 [no]
FCF(TTM) negative [BIG NO]
Dividend Yield = 0 [no]
Pump and dump high volume seen on 1 April [NO]
Verdict: 6 NO, 2 yes
Read the method in detail here: https://klse.i3investor.com/web/blog/recent/fundamental_trading
2022-04-03 07:15
Tguan only got very small 2,000 acres oil palm
Jaya Tiasa has 100X (TIMES) MORE OIL PALM LANDS AT 206,000 ACRES
ITS LANDS IN PULAU BRUIT CAN BE EXPANDED FULLY
PULAU BRUIT IS EVEN BIGGER THA THE WHOLE ISLAND OF PENANG
PLUS JTIASA ALSO GOT LOTS MORE LANDS IN CENTRAL SARAWAK
GO LOAD UP JTIASA
See
https://www.youtube.com/watch?v=mTzR4NhC-iw
2022-04-03 16:11
As at 31 January 2021, Teck Guan total planted area owned by subsidiary companies stood at 758 hectares... (From annual report).... KYY should do some research before publishing his comment...as he has many followers.
2022-04-04 16:35
Teck Guan has too much related party transaction that I don't like. The boss can make Teck Guan's revenue rise and fall at his will.
2022-04-04 21:03
calvintaneng
Correct !
all palm oil companies will report fantastic profits in May, August, Nov 2022 and right into year 2023 in palm oil Superbull run time
As for Tguan it's main earnings come from buying Ffb and processing into Cpo for sale at excellent profits this round
Tguan has a small 2,000 acres of palm oil on its own and yet can outperform
Jtiasa should excell more as it has a whopping 206,000 Acres or 100x bigger
So Jtiasa should rise to break it's previous record high of Rm3.35 again
DON'T DO DAY TRADE BUT BY AND HOLD TILL END 2022 TO 2023 BEST
2022-04-02 12:22