Koon Yew Yin's Blog

Plantation stocks comparison update - Koon Yew Yin

Koon Yew Yin
Publish date: Tue, 10 May 2022, 04:41 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.

All materials published here are prepared by Mr. Koon Yew Yin

Recently all plantation stock prices have been dropping despite CPO just hit a new record high price as shown on the price chart below. The reason is because too many investors over sold to take profit. The more they sold, the price continued to drop which is affecting investors who used margin finance to buy more shares. Margin finance is a double edge sword. It cuts both ways.

At the current price level, no sensible investors would sell. Unfortunately, many investors are forced to sell to meet margin calls. In fact, clever investors should take advantage of the situation to buy at the cheap sale price level.    

There are a few reasons why CPO price continues to shoot higher and higher.

1) Malaysian Ringgit is depreciating as shown on the chart below. All plantation companies will gain additional profit due to the foreign exchange advantage.

2) 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.

3) Recently the Indonesian government-imposed CPO export restriction which will continue to push up CPO prices in the world market as shown on the CPO price chart below.  

 

 

Based on FFB production of each company in the last 3 months is the most accurate method for comparison.  

The table below shows the comparison of each company’s 3 months FFB production ÷ current market capitalisation. Subur Tiasa and Jaya Tiasa are the 2 best stocks.  

Name

FFB (ton)

3 months FFB 

Market Cap. Rm.

3 months FFB ÷ market cap

 

Subur Tiasa

23,117

 

 

 

 

 

18,295

64,269

391 million

164

1

 

22,587

 

 

 

 

Jaya Tiasa

55,363

 

 

 

 

 

43,722

151,243

964 million

157

2

 

52,158

 

 

 

 

MHC

10,035

 

 

 

 

 

9,005

29,639

236 million

125

3

 

10,599

 

 

 

 

Sarawak Plant

22,897

 

 

 

 

 

19,126

62,661

784 million

80

4

 

20,038

 

 

 

 

SOP

76,723

 

 

 

 

 

88,787

267,788

3,412 million

78

5

 

102,278

 

 

 

 

Cepatwawasa

6,982

 

 

 

 

 

6,713

21,973

328 million

67

 

 

8,278

 

 

 

 

Ta Ann

45,505

 

 

 

 

 

47,364

154,723

2,536 million

61

6

 

61,854

 

 

 

 

Hap Seng

43,653

 

 

 

 

 

40,628

136,468

2,392 million

57

8

 

52,187

 

 

 

 

Teck Guan

1,0035

 

 

 

 

 

884

3,062

64 million

48

9

 

1,138

 

 

 

 

At the current price level, no sensible investors would sell. Unfortunately, many investors are forced to sell to meet margin calls. In fact, clever investors should take advantage of the situation to buy at cheap sale price level.    

 

 

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Discussions
Be the first to like this. Showing 15 of 15 comments

vcinvestor

when will we see the inevitable "Subur Tiasa is rubbish" post? My bet is the week of 23-27th May. Come come PM me to place your bets

1 month ago

OnTime

4th reason: the world is flooded with some much fiat money that prices of all goods must go up.

1 month ago

calvintaneng

Best buys are these

Sop
Tsh resources
Taann
Jtiasa
Thplant
Bplant
Hs plant
Simedarby plant
Ioi corp
Fgv

1 month ago

gladiator

Cannot compare like this some plantation companies sell at spot price example Sop, Sarawak plantation, Taann.

1 month ago

blackgold77

the inevitable post will be... "XXX has a trap..." or "Why I sold XXX to buy <another theme>..."

1 month ago

bosskufanboy

unclekyy is my idol, kakakaka

1 month ago

speakup

look like many ppl sell Plantation swap to O&G

1 month ago

speakup

panic buying @ hengyuan, but plantations no power

1 month ago

Ravi Kumar

LOL Follow UNCLE TO HOLLAND!!!! https://www.theedgemarkets.com/article/subur-tiasa-falls-much-5-after-... and still want to keep

1 month ago

stockraider

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!

1 month ago

subwayzzz

Too bad KYY got stuck in subur. KYY Should have bought tons in sop or taann!

1 month ago

subwayzzz

High ffb, kernel harvests and cpo will not translate into profitability.

Don’t believe ? Just read the report of the url Ravi Kumar posted and I agree with the report. Minus the optimistic part how the management views their future performance.

1 month ago

sensonic

Post removed.Why?

1 month ago

katedoyle12

My stocks fell so much that I wanted to get rid of them all. So sad
@https://wordle-game.co

1 month ago

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