THE INVESTMENT APPROACH OF CALVIN TAN

SARAWAK OIL PALM (5126) Why is it in Calvin Tan Research's Investment Radar? Top 5 Factors You Should Know About SOP Great Potential

calvintaneng
Publish date: Thu, 09 Sep 2021, 10:31 PM
calvintaneng
0 1,792
Hi Guys,

I have An Investment Approach I which I would like to all.

Dear Friends 

Investing is a journey. A journey of discovering & uncovering Hidden Gems of Value with Great Potential

One such stock is SARAWAK OIL PALM (SOP)

Why is it so?

And revealed here are the salient factors for SOP

 

1) SOP Latest Qtr result shows Good Growth Prospects

 

See

SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2021

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Jun 2021
30 Jun 2020
30 Jun 2021
30 Jun 2020
$$'000
$$'000
$$'000
$$'000
1 Revenue
949,046
626,060
1,737,368
1,144,144
2 Profit/(loss) before tax
146,620
51,513
259,653
147,823
3 Profit/(loss) for the period
107,918
41,028
194,528
115,337
4 Profit/(loss) attributable to ordinary equity holders of the parent
98,320
38,342
177,377
109,545
5 Basic earnings/(loss) per share (Subunit)
17.20
6.72
31.04
19.19
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
4.4800
4.1600
 

 

YoY or Year on Year

SOP Profit increased from 6.72 sen to 17.20 sen or up 155.9%

 

This qtr earns 17.20

 

Annualised 4 qtrs

17.2 x 4 = 68.80 sen

At current price of Rm3.69

SOP P/E is 369 / 68.80

= 5.36 P/E

That means SOP will double your money in just 5.36 years

 

 SOP gives a yield of 18.6% which is more than 10X (times) Bank FD rate at 1.75%

 

2) SOP has 300,000 Acres of Plantation Lands of which 200,000 Acres are already Planted with Oil Palms

This makes SOP the same league as SimeDarby Plant, FGV, TSH Resources, TAANN, THPLANT & BPLANT All Having at least 200,000 Acres of Oil Palms each and more

With CPO prices so high now the Oil Palm Companies with the Most Upstream Acreage will benefit the most

And SOP has demonstrated its growth by its results

 

3) Over The Years The Oil Palm Trees are Maturing More & More

See

 

Planted Hectarage, Production and Yield
 
 
YEAR.........Mature.............Immature
 
2011...........43,339...............19,416
2012...........45,107
2013...........55,426
2014...........59,997
2015...........61,049
2016...........77,115
2017...........78,607
2018...........80,772
2019..........79,872
2020..........81,198............... 6,766
 
 
 
As you can see from the above excellent Maturing Oil Palms from
 
43,339 Hectares in year 2011 to 81,198 Hectares by year 2020
 
The Matured Oil Palms yielding its best FFB (fresh fruit bunches) has increase by 87.3% over a 10 year growth period till 2020
 
How many acres
 
To convert 81,198 hectares to Acres Multiply by 2.471
 
= 200,640 Acres
 
And 6,766 Hectares (16,718 Acres) are also fast maturing making it more than 217,358 Acres in Total
 
This is 20% more than Singapore Land Area of 180,000 Acres
 
That is a Lot of Oil Palms now seeing 100% to 200% more expensive FFB Prices!!
 

4) INSIDER COMPANY & DIRECTORS ARE BUYING SOP SHARES

In March SOP Company Bought a 

 

Why after absence of one year (no purchase in year 2020) COMPANY STARTED BUYING 6.75 MILLION SOP SHARES ON MARCH 19TH 2021

 

See again

 

 

5) THE ANSWER TO NUMBER 4 IS RED PALM OIL!!

 

See

Chinese oil standard opens doors for red palm oil

 

THE introduction of the Chinese Group Standards has opened a new market for Malaysia’s red palm oil as importers from China are now able to purchase the premium oil.

China, the largest buyer of palm oil, recently approved the new standards for the premium palm oil, which was previously banned from entering the country due to colour specifications in China’s standard for palm oil, said Malaysian Palm Oil Board (MPOB) DG Dr Ahmad Parveez Ghulam Kadir.

“Previously, red palm oil was not allowed to enter China due to the colour specification in the existing Chinese Standard for palm oil which was set at a maximum of 3.0 red.

“Most of the red palm oil produced in Malaysia is detected at 7.0 red and above,” he said in a statement yesterday.

The newly announced Chinese Group Standard allows for the importation of red palm oil without the barrier effective from March 1, 2021.

Ahmad Parveez said the Chinese Group Standard was the culmination of multiple stakeholder engagements and extensive bilateral cooperation between MPOB and its respective Chinese authorities.

“In 2014 and 2015, MPOB conducted an intervention programme with the Lanzhou University to help fight Vitamin A deficiency among 2,000 school children in Gansu Province through the use of red palm oil, which contains natural carotenes, a pro-Vitamin A and a powerful antioxidant.

“The programme effectively helped reduce Vitamin A deficiency among the children from 21.6% to 6.1% after six months of intervention and MPOB takes pride in the corporate social responsibility initiative which was jointly carried out with the

Chinese Nutrition Society,” he added. Ahmad Parveex said the agency through MPOB’s regional office in Shanghai, China, namely the Palm Oil Research and Technical Service Institute of MPOB, local industry players and research institutes, had jointly developed food and animal feed formulated with red palm oil.

“These products, including the red palm-based extruded snacks, red palm-hot pot soup stocks, red-palm dog food and red-palm feed for layer chickens, will help strengthen the Malaysian palm oil markets in China by reaching out to the Chinese producers and consumers,” Ahmad Parveez said.

Ahmad Parveez encourages Malaysian exporters to grab the opportunity to sell premium red palm oil to China, which is a multi-segment market with the most diversified consumers globally.

Well said. Currently these three Companies produce Red Palm Oil: Simedarby Plant, UPlant & SARAWAK OIL PALM (SOP)

 

See

2xMerris Classic Red Palm Oil 500ML | Shopee Singapore
 

2xMerris Classic Red Palm Oil 500ML ...

 

Click on the above and SEE. YES CLICK!!

WAHAHA! MERRIS RED PALM OIL SOLD UNTIL OUT OF STOCK IN SINGAPORE

Guys, Please check with Malaysia Super Market got Merris Red Palm Oil for Sale?

No wonder Other Insiders of SOP also buying 

See

 

What is the Expected Target Peak Price for SOP?

From Stock Performance Guide by Dynaquesy

In year 2012 SOP highest price was Rm7.04

And in year 2014 SOP reached Rm7.02

Since SOP only got

2012...........45,107 hectares

2013...........55,426
 
2014...........59,997 hectares (about 148,252 Acres of Oil Palm)
 
Compared to now over 210,000 Acres 41% MORE MATURING OIL PALM TREES
 
THE TARGET PRICE SHOULD REACH RM8.00
 
YES!!! WILL SOP REACH THE TARGET PRICE OF RM8.00 IN THIS NEW PALM OIL BULL RUN TIME?
 
YET TO BE SEEN
 
 
Best Regards
 
Calvin Tan
 
 
Please buy or sell after doing your own due diligence or consult your Remisier/Fund Manager
 
 
 
NOTE: RED PALM OIL SELLS AT A PREMIUM AND VERY EXPENSIVE HIGH QUALITY PRODUCT
More articles on THE INVESTMENT APPROACH OF CALVIN TAN
Discussions
1 person likes this. Showing 20 of 20 comments

calvintaneng

In Spore Merris red palm oil by SOP retails at S$11.35 or Rm36 for 500ml

In Malaysia Saji 5kg palm oil at Mydin supermarket sells for Rm29. 70

So red palm oil is 10x (times) more expensive than normal palm oil

2021-09-10 01:02

calvintaneng

Correction

Should be 2x bottles of merris red palm oil 500ml for S$11.35 or Rm36. 00 in Spore

2021-09-10 01:21

calvintaneng

Merris Red Palm oil is SOLD OUT in Singapore

https://shopee.sg/2xMerris-Classic-Red-Palm-Oil-500ML-i.215803150.5056088525

2021-09-10 08:35

VenFx

Thank you

agree on calvin on SOP .
Thplant any study done ?

2021-09-10 12:46

calvintaneng

Nice to see you here VenFx

Thplant yes.

Will post some links here later

2021-09-10 13:08

VenFx

thank you Calvin bro

looking forward to all your sharing on plantation related counters.

2021-09-10 13:11

calvintaneng

Ok this is Thplant

THPLANT (5112) A Look at its Grossly Undervalue Assets & Increasingly Bright Prospects, Calvin Tan Research

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-04-20-story-h1563425685-THPLANT_5112_A_Look_at_its_Grossly_Undervalue_Assets_Increasingly_Brigh.jsp

2021-09-10 14:08

calvintaneng

This is TSH Resources

TSH RESOURCES: ONE COMPANY WITH 9 BUSINESSES; The Most Overlooked, Undemanding, Undervalue Palm Oil Stocks with Far Reaching Now & Future Potential

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-08-17-story-h1569795039-TSH_RESOURCES_ONE_COMPANY_WITH_9_BUSINESSES_The_Most_Overlooked_Undeman.jsp

2021-09-10 14:11

calvintaneng

Nigeria Palm Oil Company up 500%

https://tradingeconomics.com/okomuoil:nl

2021-09-10 14:16

calvintaneng

Nigeria Palm Oil up from 20 to 110 from 2016 to 2021

5 years up 500%

https://tradingeconomics.com/okomuoil:nl

click see full chart history

2021-09-10 14:18

calvintaneng

The Cycles

Gloves at Final Collapse Stage 8 & 9

Steel very high

Palm oil just starting to warm up now THE BEST

YES PALM OIL IN UPCYCLE IS THE BEST

SEE THIS VERY VERY VERY CAREFULLY

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-05-08-story-h1564345486-From_Permafrost_to_Precipitation_Calvin_Tan_Research_At_what_stage_is_G.jsp

2021-09-10 14:25

calvintaneng

In times when CPO prices up 100% to 200%

Producing the same or even lesser amount also very good

Price Rise AMPLIFY PROFITS

Go for the Palm Oil Companies with the MOST Oil Palm planted

TSH RESOURCES

TAANN

FGV

SIMEDARBY PLANT

THPLANT

BPLANT

PLUS THIS ONE VERY VERY GOOD : SARAWAK OIL PALM (SOP)

SEE

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-08-31-story-h1570662146-OIL_PALM_STOCKS_IN_Bull_Run_Time_Those_Prepared_with_Biggest_Capacity_W.jsp

2021-09-10 14:30

calvintaneng

PALM OIL JEWEL: BPLANT OR BOUSTEAD PLANTATION (5254) BPLANT HAS DEEP VALUE ASSETS AND INCREASING EARNINGS, Calvin Tan Research

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-04-12-story-h1563301593-PALM_OIL_JEWEL_BPLANT_OR_BOUSTEAD_PLANTATION_5254_BPLANT_HAS_DEEP_VALUE.jsp

2021-09-10 14:32

VenFx

Calvin bro,

i always admire your speed and respond
in sharing .

wonder how you always full with energy.

2021-09-10 20:21

calvintaneng

Posted by VenFx > Sep 10, 2021 8:21 PM | Report Abuse

Calvin bro,

i always admire your speed and respond
in sharing .

wonder how you always full with energy.

TYVM

THE DRIVING FORCE IS THE PASSION OF HELPING PEOPLE

BOTH THIS LIFE AND THE AFTER LIFE

See www.inspiretopray.com

2021-09-10 20:24

Mat Cendana

I'm old enough to remember SOP's public issue/IPO in early 1990s. I can't remember the exact price but it was around RM2.20. Most investors back then didn't care too much about it.

The top plantation counters to buy back then were KLK (which I had bought at RM3.30 one time), IOI, Golden Hope. But it's heartening to note that SOP is still doing fine. IB analysts like from Maybank also rate it highly. At this current level, I'd say SOP is a reasonably safe counter to buy.

2021-09-13 12:22

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