Koon Yew Yin's Blog
Palm Oil Price hit a new record - Koon Yew Yin
Koon Yew Yin
Publish date: Mon, 09 May 2022, 09:33 AM
Koon Yew Yin
0 1,362
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Investors must examine the 5-year palm oil price chart below carefully to make the right investment decision. It shows that palm oil was selling around RM 2,500 per ton for many years before. It began to shoot up from April 2020 to close at Rm 7,385.00 per ton on 5 May 2022. In the last 2 years, it has been breaking its old record to make new record high price so often.
What is the right investment decision? All plantation stocks have been going up higher and higher in the last few months and many less informed investors have been selling to take profit. In my opinion, investors should not sell plantation stocks so quickly because high palm oil price will be maintained for at least in the next 2 quarters. All plantation companies should report higher profit for their first quarter ending March which should announced before the end of this month, May. You should just wait patiently.
3 factors to support high palm oil price:
1) Indonesia’s palm oil export ban.
2) Malaysian Ringgit depreciation as shown \
on the US$ exchange to Ringgit chart below. All plantation companies will make additional profit due to foreign exchange advantage.
3) The Ukraine-Russia conflict has affected Sunflower oil export as Ukraine and Russia produces about 80% of Sunflower oil in the world. In fact, they have missed the planting season for the year.
Subur Tiasa is the best plantation stock to buy:
A few days ago, I rang Subur Tiasa Head Office, telephone number 084-211555 to verify its latest earning per share (EPS) of 16.15 sen. Its accountant told me that 16.15 EPS was for 2 months because the company wanted to change its financial year from ending in July to December. Subur Tiasa’s EPS should be adjusted for 3 months to compare it with other plantation stocks. Subur Tiasa’s EPS for 3 months should be 16.15 ÷ 2 X 3= 24.2 sen.
Comparison plantation stocks based on historical PE ratio which is too conservative because all plantation companies should be making and more profit in the next few quarters.
|
Name |
Price Rm |
Latest EPS |
Latest EPS X4 |
Price ÷EPS X4 |
|
Subur |
2.10 |
24.2 |
96.8 |
2.17 |
|
Cepat |
1.13 |
7.74 |
31.0 |
3.6 |
|
SOP |
6.45 |
36.44 |
Rm1.56 |
4.1 |
|
Jaya Tiasa |
1.05 |
5.28 |
21.12 |
5.0 |
|
Sarawak Pl |
2.96 |
11.66 |
46.6 |
6.4 |
|
Hap Seng |
3.13 |
11.79 |
47.2 |
6.6 |
|
Ta Ann |
6.03 |
21.8 |
82.2 |
7.2 |
Subur Tiasa is the cheapest as shown above.
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Discussions
Be the first to like this. Showing 18 of 18 comments
the reason why plantation stocks are selling off is because we are entering peak production season. Any CPO trader can tell you that. So if we are entering high production season, the market would also discount the potential of peak earnings soon. Either way just be mindful that there is no sure thing in the markets and be mindful if someone tells you so
2022-05-09 12:42
Why the market is giving Subur Tiasa a very low PE ratio rating is
bcos the company ' s audited accounts are qualified by the auditors with concerns over it's bad financial situation.
2022-05-09 13:08
For the auditors of Subur to qualify it's audited accounts bcos it's current liabilities far exceed it's current assets indicates financial solvency issues in the future.
2022-05-09 13:13
Ah koon prmoting palm oil shares cos he and his stoopid niece must have bought a lot and want to dispose them for a super profit but problem is that last 1-2 weeks, palm oil shares dropping heavily
2022-05-09 19:46
ST’s financial statements were never beautiful for such a long time. Why do you promote ST ?
2022-05-09 19:49
https://www.channelnewsasia.com/business/malaysias-april-palm-oil-exports-fell-171-pct-sgs-2673861
no matter how high the price is, if the volume is down it means less revenue. 17% !!!!!!
SOP and TAANN are in better position than SUBUR. Avoid SUBUR and its siblings at all cost and don't catch a falling knife!
2022-05-10 08:57
Blog: Hengyuan’s profit growth is doubtful - Koon Yew Yin
Posted by emsvsi > May 7, 2022 1:00 PM | Report Abuse
Dear Mr Koon,
It is clear that you are selling oil palm and buying Heng Yuan. However you must remember what happened in the past in Heng Yuan where you and many others were burnt badly. Remember, what goes up must come down. Especially a cyclical stock like Heng Yuan. All the promoters will disappear when Heng Yuan crashes to the depths of the world, and when the 'crack spread' and one off inventory gains turn to losses
Sincerely,
EMSVSI
2022-05-10 14:41
Bplant going to declare another good dividend
Hs plant and Tsh resources as well will declare dividend
Sop, Taann, Simedarby plant , Thplant and ioi corp all are good
Just buy a basket of all and hold till December 2022 to earn 200% to 300%
2022-05-11 00:13
Yes Lah
Plantation is your insurance to hedges.
Fantastic profits.. Listen to Calvin. He knows what his talking..
2022-05-11 13:35
Lu tau boh ??
At the moment plantation stock are price modestly using sustainable cpo price of Rm 4000 mah!
With the current price above Rm 6000, even if indonesia comeback to the export mkt....that will not affect plantation share price bcos it is not overvalue....as it is not value base on cpo rm 6000 mah!
2022-05-12 11:53
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CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
skoh888
please be honest....cpo price came out 10 % last week so its 10% from the all time high which is significant. get your facts straight and do not mislead readers
2022-05-09 12:38