Dear Friends

The Word says, "BY THEIR FRUIT YE SHALL KNOW"

How appropriate 

NOW THAT CPO PRICES ARE AT WORLD RECORD HIGH WE CAN ACTUALLY "COUNT THE CHICKEN" BEFORE THEY HATCH OR IN THE CASE OF SOP WE CAN COUNT THE EARNINGS BY ITS FFB (FRESH FRUIT BUNCHES)

First look at SOP Latest Qtr Result

Lastest Qtr result 21.95 sen

Annualized 21.95 x 4 

= 87.8 sen

SOP price now Rm3.56

So to get forward P/E

Divides Rm3.56 by 87.8

= P/E is 4.05

That means that SOP will double your money in just 4.05 years

Now this Result is from July to Sept 2021 when FFB averaged Rm4,417 in price

As we entered into October till Nov 30th today CPO has gone above Rm5000 to Rm5300 new record level which is 20% More in price

Malaysia Export Statistics showed a 34.6% increase in Palm oil Products

If prices maintain above Rm5,000 per ton plus FFB harvest sustain then we can see SOP results by Feb 2022 to increase further

Let's see SOP FFB Fruit harvest from July to Sept 2021

We submit herewith the SOPB Group's figures for the month of July 2021

M.TONNES

FFB 98,679
CRUDE PALM OIL 29,782
PALM KERNEL 6,210

We submit herewith the SOPB Group's figures for the month of July 2021

M.TONNES

FFB 98,679
CRUDE PALM OIL 29,782
PALM KERNEL 6,210

FFB for July was 98,679 tonnes

We submit herewith the SOPB Group's figures for the month of August 2021

M.TONNES

FFB 109,964
CRUDE PALM OIL 33,297
PALM KERNEL 7,537

FFB for August 2021 was 109,964 tonnes

We submit herewith the SOPB Group's figures for the month of September 2021

M.TONNES

FFB 111,572
CRUDE PALM OIL 34,229
PALM KERNEL 7,777

FFB for Sept 2021 was 111,572 tonnes

To get average of 3 months

98,679 + 109,964 + 111,572

= 320,215 tonnes divides by 3

= 106,738 tonnes a month average

Now see October harvest

We submit herewith the SOPB Group's figures for the month of October  2021

M.TONNES

FFB 104,480
CRUDE PALM OIL 33,960
PALM KERNEL 7,669

104,480 tonnes

Compared to average of last qtr at 106,738 tonnes there is a slight drop of 

2,258 tonnes or 2%

But export of Palm oil products up 34.6%

To get rough estimate result for Feb 2022 result

NOW the formula is this

21.93 x 98/100

= 21.51 x 1.346

=

28.95 sen projected profit

What is the New P/E

So 28.95 x 4 =  Rm115.80

Rm3.56 divides by Rm1.158

3.07 P/E

The P/E will further improves to 3.07

And the yield?

115.8 divides by 356

A WHOPPING 32%

THAT IS THE POWER OF VERY HIGH CPO PRICES RESULTING IN VERY HIGH EARNINGS FOR SOP AND BY PROXY FOR ALL PALM OIL STOCKS

Warm regards

Calvin Tan

Please buy or sell after doing your own due diligence or consult your remisier/Fund Manager