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Plantation stocks comparison - Koon Yew Yin

Koon Yew Yin
Publish date: Thu, 26 Dec 2024, 04:28 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

Koon Yew Yin, 25th December 2024

Indonesia is the biggest palm oil producer in the world. Indonesia plans to implement biodiesel with a mandatory 40% blend of palm oil-based fuel from Jan. 1 next year, a senior energy ministry official said recently. That means Indonesia will use more palm oil to produce B40 biodiesel, which contains 40% palm oil.

As a result, CPO price has been going up rapidly as shown by the chart below:

All plantation companies are making more and more profit. Among all the stock selection criteria such as NTA, cashflow, healthy balance sheet, dividend yield, EPS, etc., the most powerful criterion or factor that can push up share price is profit growth prospect. Although all plantation companies should report more and more EPS a share, for comparison I assume EPS are the same for each of the next 3 quarters as shown below:


Name
Price
Latest EPS
4XEPS
P/E
Rank
Jaya Tiasa
Rm1.29
7.74sen
31.0sen
4.2
1
MHC
Rm1.00
5.12sen
20.5sen
4.9
2
SWK Plant
Rm2.30
11.13sen
44.5sen
5.2
3
SO Palm
Rm3.02
13.66sen
54.6sen
5.5
4
Johor Plant
Rm1.28
3.93sen
15.7sen
8.2
5
Hap Seng
Rm3.42
7.76sen
31.0sen
11.0
6
TSH
Rm1.21
2.40sen
9.6sen
12.6
7
Kim Loong
Rm2.52
4.05sen
16.2sen
15.4
8
TDM
21sen
0.14sen
0.56sen
37.0
9

Even based on the EPS being the same for each of the 4 quarters, Jaya Tiasa is selling at PE 4.2, which is the lowest among all the 9 plantation companies.

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