Koon Yew Yin's Blog
Plantation companies will report less profit - Koon Yew Yin
Koon Yew Yin
Publish date: Tue, 24 May 2022, 10:19 AM
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
All materials published here are prepared by Mr. Koon Yew Yin
With good intention, I have posted a few articles to promote plantation stocks because CPO price has been sky rocketing to historical high as shown on the CPO price chart below.
All investors are expecting plantation companies to report better profit for the quarter ending March which should be announced next week.
Among all the plantation companies, Cepatwawasan is the first to report its profit for the quarter ending March. Cepatwawasan reported 4.93 sen EPS for the quarter ending March. It reported 7.74 sen EPS for the quarter ending December.
Why should it report reduced profit when CPO price has been surging up higher and higher?
I was shocked to find out the reason why the company reported reduced profit despite the rising CPO price. Cepatwawasan produced less FFB due the shortage of foreign workers. Our government restricted entry of foreign workers due to Covid 19 pandemic.
Plantation companies will most likely report lesser profit for the quarter ending March 2022 than the quarter ending December 2021 despite the rising CPO price.
Why CPO price is surging?
The reasons are:
1) The rising CPO price is due to reduced FFB production which is caused by shortage of foreign workers.
2) Indonesia CPO export restriction to help local consumers.
3) Sunflower oil export restriction due to Ukraine-Russia conflict. Ukraine and Russia produce about 80% of Sunflower oil in the world.
As required by Bursa, all plantation companies are required to report their monthly FFB production.
The tabulation below shows all the plantation companies produced lesser FFB for the quarter ending March than the previous quarter ending December 2021.
|
Name |
Month |
FFB ton |
3 months |
Reduced % |
|
Cepat |
March |
6982 |
|
|
|
|
Feb |
6713 |
21,945 |
|
|
|
Jan |
8278 |
|
|
|
|
Dec |
9375 |
|
|
|
|
Nov |
10,145 |
39,402 |
79% |
|
|
Oct |
10,945 |
|
|
|
Subur |
March |
23,117 |
|
|
|
|
Feb |
18,295 |
66,272 |
|
|
|
Jan |
22,857 |
|
|
|
|
Dec |
28,982 |
|
|
|
|
Nov |
30,501 |
91,982 |
39% |
|
|
Oct |
32,439 |
|
|
|
Sarawak Plant |
March |
22,897 |
|
|
|
|
Feb |
19,126 |
62,661 |
|
|
|
Jan |
20,638 |
|
|
|
|
Dec |
25,217 |
|
|
|
|
Nov |
29,500 |
84,641 |
35% |
|
|
Oct |
29,964 |
|
|
|
JayaTiasa |
March |
55,363 |
|
|
|
|
Feb |
43,722 |
151,243 |
|
|
|
Jan |
52,125 |
|
|
|
|
Dec |
59,766 |
|
|
|
|
Nov |
67,409 |
198,069 |
30% |
|
|
Oct |
70,834 |
|
|
|
SOP |
March |
88,033 |
|
|
|
|
Feb |
76,788 |
253,543 |
|
|
|
Jan |
88,787 |
|
|
|
|
Dec |
102,278 |
|
|
|
|
Nov |
108,723 |
315,485 |
24% |
|
|
Oct |
104,480 |
|
|
As I said, despite the record CPO price, all plantation companies would not report higher profit due to shortage of workers. However, the situation has changed as Malaysia is re-opening of international borders on 1st April 2020 as you can see the announcement below.
Plantation companies has good profit growth prospect.
MALAYSIA - RE-OPENING OF INTERNATIONAL BORDERS ON 1 APRIL 2022. we refer to the press release issued by the Ministry of Health (MOH) dated 24 March 2022 where the Government announced the reopening of Malaysia's International borders for travellers from all countries, effective 1 April 2022. All plantation companies should produce more FFB for the quarter ending June than the quarter ending March.
Investors must look ahead to make more money. Clever investors should take advantage to buy plantation stocks especially Subur Tiasa which has been dropping rapidly as shown on the price chart below.
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Discussions
Be the first to like this. Showing 34 of 34 comments
Simple mah!
We are facing food inflation loh!
As food prices may even go up as high as 60% in the next 6 mths loh!
Best defense....buy into plantation....that hold enormous plantation land and produce food like palmoil....to hedge agst inflation mah!
2022-05-24 11:20
I have said it before...
shortage of workers is the biggest enemy..
with MYR going to ATL, Indon pun tak nak kerja msia dh oi.... hahahh
so harapkan the new generation kids to go farming and plant sawit?
mampus la if harapkan Gen Z and the millenials to go tanam sawit and padi.. XD
Smart Farming is the way forward..
it will address labour shortage, agricultural wastage and boost efficiency
until these plantations adopt it, I won't touch them till then
2022-05-24 12:43
I am shock that now only kyy knows that Q1 ffb output is always lower than Q4.
2022-05-24 13:12
The low production output in Q1 has nothing to do with any other factors but the nature of palm tre.
2022-05-24 13:15
It's not labor shortage! Rather coming drought that will produce much lower yield!
2022-05-24 14:59
Uncle... Why u didnt mention about canola oil and soy oil shortage also...
2022-05-24 16:07
" As food prices may even go up as high as 60% in the next 6 mths loh! "
Can I say the above in another way that is our cash may drop as much as 60% in the next 6 mths ?
Killer inflation is coming to destroy our cash ?
2022-05-24 17:22
Uncle KYY part of your news article is not accurate. Yes some of the west Malaysia based plantation companies may report lower FFB production figures in their 1st Qtr. But please do take note. Sabah planter's production may be higher vs their peers in Peninsular or Sarawak. Earnings growth for all the planter's will be higher. Due to strong CPO & Kernel average traded prices. The last 5 days we have seen all the planters have reported higher profit { not less profit} in their statutory corporate announcement
2022-05-24 18:41
Lower production in March qtr compared to Dec qtr is due to crop seasonality . Every year is the same !
2022-05-24 18:49
KYY, lower production due to low yield season, it’s not due to low manpower! What kind of logic this this??? Suddenly a lot of workers resign n caused lower production??? Actually u can keep ur articles to urself, it’s full of bs…
2022-05-24 21:18
Stocks fall Tuesday as Wall Street resumes sell-off, Snap drags tech lower
PUBLISHED MON, MAY 23 20226:06 PM EDTUPDATED 1 MIN AGO
Tanaya Macheel
@TANAYAMAC
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Samantha Subin
@SAMANTHA_SUBIN
2022-05-24 21:39
Latest news TA Ann, TSH, SOP, SWK, BPlant, SIM, IOI all reported substantial earnings and higher profit
2022-05-24 22:53
The overall sentiment for plantations are badly affected by the disappointing results of the big caps.
All my small cap and mid cap plantations show excellent Q1 2022 results :
SOP EPS 34.09sen (+146% yoy)
Bplant EPS 19.43 sen (+353% yoy for operations)
Taann EPS 23.75 sen (+155% yoy)
Swkpltn EPS 15.52 sen (+82% yoy)
MHC EPS 5.8sen (+67% yoy)
Cepat EPS 4.93sen (+172% yoy)
They put the big boys to shame !
UP EPS 14.39sen (- 20% yoy)
Simepltn EPS 10.4sen (+27% yoy)
IOI EPS 6.62sen (+3% yoy)
Stay invested in small and mid cap plantation counters. The best yet to come.
2022-05-25 09:00
At the end of the writing, uncle want you to buy subur tiasa. So it can be he is selling now to you. Don't fall into his trap.
2022-05-26 09:10
KYY contradicting himself again and again.\
Plantation Companies will have better profit growth - Koon Yew Yin (20 May)
https://klse.i3investor.com/web/blog/detail/koonyewyinblog/2022-05-20-story-h1623331577-Plantation_Companies_will_have_better_profit_growth_Koon_Yew_Yin
2022-05-26 09:20
KYY, what goes around comes around… hoped u enjoy ur winning and live a prosper and peaceful life… karma will balance everything in the end…those that follows his advise that trap, wished u all the best…
2022-05-26 13:47
Now you see, confirmed this KYY when writing already had bad intention of selling to those believe in him. In 3 days the price of subur drop 20% and if you don't sell the price may drop to 50%.. he did it over and over again. Fxxxxxk hiiiimmm
2022-05-27 10:28
after KYY finish buying, he promote kaw kaw with nice articles
during his promotions, he quietly sells
once finish selling, he will say bad things about it
so he buys cheaps and sells near peak to i3 readers
2022-05-27 10:49
How can he ask people to buy because the chart is showing a downtrend? I thought he says chart must show uptrend then only buy haha
2022-05-27 12:05
Worst, KYY asked ppl to buy shares in a company that has liquidity issues… he is worse of all pariah
2022-05-27 15:04
MALAYSIA - RE-OPENING OF INTERNATIONAL BORDERS ON 1 APRIL 2022
LOL, as if border open all estate worker will flow in to address the severe shortage of worker
2022-05-27 20:41
in short, when u hear people over publise certain counters just make sure you DONT buy them... example, subur tiasa, jaya tiasa, tsh, hengyuen, ..... and when IBs say dont buy certain counters, actually u shd buy them.... more on long term gains
2022-05-27 22:15
He stuck a lot in Subur , slowly turning to Kubur. need people to buy to support price. lol
2022-05-28 23:58
It is simple logic.. prices sky rocketing is not because the oil is more valuable consumable item, it was due to lack of produced...
Lack of workers.. now labor union and those country representative demanding more and better work environment and pay rates..
Lesser willing to come back to that volatile market and hard jobs.. During Covid pandemic they being forced not to work... No money... Or hard to go back to their home countries.. Once they went back, hard to return to Malaysia... Past workers already found better jobs.. Newer generation with lack of skills and technology are reluctant to join in..
Trees getting older and taller..
2022-06-16 16:23
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Subur looks like a falling knife, how to catch it without cutting our hands ?
2022-05-24 10:45