The following table sets out the financial highlights based on the combined statements of comprehensive income for FYE 2020 to 2023:
Major customers and supplier
The top 5 major customers for FYE 2023 are listed in the following table:
The top 5 customers contribute 100% of the company's revenue. The management has mentioned that, due to the nature of its business, it is more efficient to engage with a concentrated number of established customers with large order quantities, rather than having a wide range of customers with smaller order quantities at the expense of efficiency.
Although customer concentration is high, clients can still be easily found due to the open market. Besides, CPO is a common commodity, it can be easily sold to any customer.
The top 5 major suppliers for FYE 2023 are listed in the following table:
The total purchases from the top 5 suppliers account for 69.1%. The management mentioned that the company is not dependent on any suppliers because the products provided by the suppliers can be easily sourced from the Indonesia market.
According to the research from SMITH ZANDER, between 2020 and 2023, prices of CPO in East Kalimantan fluctuated, with the lowest price at IDR6,657.44/kilograms (“kg”) (RM2,010.55/MT) in June 2020 and the highest price at IDR15,490.11/kg (RM4,600.56/MT) in April 2022.
Between 2020 and 2023, prices of PK in East Kalimantan fluctuated, with the lowest price at IDR3,131.43/kg (RM945.69/MT) in June 2020 and the highest price at IDR12,605.44/kg (RM3,743.82/MT) in April 2022.
Generally, PK prices have similar trends with CPO prices as the production of PK is closely tied to the production of CPO given that PK is a by-product of CPO. As such, the factors which affect the production of CPO also apply to the production of PK. Local prices of PK in East Kalimantan mirror the global prices of PK, which are influenced by supply and demand conditions of PK in the global market.
The key drivers in this industry:
The key risk and challenges in this industry:
The market share of MKHOP Group in the oil palm industry in Indonesia and East Kalimantan is represented by its share of total planted area and CPO production in Indonesia and East Kalimantan respectively. MKHOP Group captured a market share based on total planted area of 0.11% in Indonesia and 1.21% in East Kalimantan; and a market share based on CPO production of 0.16% in Indonesia and 1.88% in East Kalimantan.
Source: SMITH ZANDER
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