THE INVESTMENT APPROACH OF CALVIN TAN

PALM OIL COMPANY PROFITS IN YEAR 2019 VERSUS NOW IN 2024 (After 4 to 5 Years Show Excellent Growth, Calvin Tan

calvintaneng
Publish date: Mon, 08 Jan 2024, 08:02 AM
calvintaneng
0 1,788
Hi Guys,

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

Dear friends of i3 Forum,


We list Palm oil Results of 2019 November Versus Results of 2013 November to show clearly Palm oil Companies have all Done Very Well as A Group

Refer to Bursa Saham Website


1) SIMEDARBY PLANT


SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2019

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2019
30 Sep 2018
30 Sep 2019
30 Sep 2018
$$'000
$$'000
$$'000
$$'000
1
Revenue
2,821,000

8,686,000

2
Profit/(loss) before tax
84,000

219,000

3
Profit/(loss) for the period
-202,000

-32,000

4
Profit/(loss) attributable to ordinary equity holders of the parent
32,000

167,000

5
Basic earnings/(loss) per share (Subunit)
-3.50

-2.10

6
Proposed/Declared dividend per share (Subunit)
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 ($$)
1.9500
1.9200


Revenue was Rm2.821 billions

Profit only Rm32 millions

Reported a loss of -3.50 sen


See latest Result of Simedarby Plant


SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2023

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2023
30 Sep 2022
30 Sep 2023
30 Sep 2022
$$'000
$$'000
$$'000
$$'000
1
Revenue
4,774,000
5,392,000
13,148,000
15,360,000
2
Profit/(loss) before tax
1,621,000
585,000
2,357,000
2,749,000
3
Profit/(loss) for the period
1,259,000
431,000
1,789,000
2,073,000
4
Profit/(loss) attributable to ordinary equity holders of the parent
1,211,000
396,000
1,660,000
1,926,000
5
Basic earnings/(loss) per share (Subunit)
17.50
5.70
24.00
27.80
6
Proposed/Declared dividend per share (Subunit)
5.70
0.00
8.95
10.00
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 ($$)
2.6300
2.3700

After 4 years with High CPO prices Revenue now Rm4.774 Billions

Profit is Rm1.211 Billions

Profit by percentage

Rm1.211 billions divide by Rm4.774 Billions

= 25.3%

What industries/businesses can give you a 25.3% Net Profit?

Warren Buffet's Berkshire performed at 25% yield in good years

We have a visible proof here in Simedarby Plant which is the Biggest Palm oil Company in the world


2. INNOPRISE PLANT


SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2019

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2019
30 Sep 2018
30 Sep 2019
30 Sep 2018
$$'000
$$'000
$$'000
$$'000
1
Revenue
29,744
29,361
82,030
81,219
2
Profit/(loss) before tax
5,088
5,117
4,780
10,461
3
Profit/(loss) for the period
4,709
4,041
4,130
8,208
4
Profit/(loss) attributable to ordinary equity holders of the parent
4,709
4,041
4,130
8,208
5
Basic earnings/(loss) per share (Subunit)
0.98
0.84
0.86
1.71
6
Proposed/Declared dividend per share (Subunit)
0.00
0.00
1.00
3.00
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 ($$)
0.6400
0.6400

Revenue Rm29.744 Millions

Profit after Tax (PAT) Rm4.709 millions

Percentage of profit to revenue

Rm4.709 mil / Rm29.744 mil

= 15.83%


Now See INNOPRISE PLANT latest result


SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2023

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2023
30 Sep 2022
30 Sep 2023
30 Sep 2022
$$'000
$$'000
$$'000
$$'000
1
Revenue
59,277
60,615
163,858
213,801
2
Profit/(loss) before tax
21,933
19,224
47,507
98,304
3
Profit/(loss) for the period
16,933
14,979
36,832
75,446
4
Profit/(loss) attributable to ordinary equity holders of the parent
16,933
14,979
36,832
75,446
5
Basic earnings/(loss) per share (Subunit)
3.54
3.13
7.69
15.76
6
Proposed/Declared dividend per share (Subunit)
2.75
3.00
7.00
16.00
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 ($$)
0.6400
0.6300


Revenue after 4 years jumped from Rm29.744 mil to Rm59.277 mil (Up 99.2%)

PAT = Rm16.933 Millions

= 28.56%

In year 2019 profit was 15.83%

Now 28.56%

A corresponding increase of 80.4%

And this strong inflow of cash resulted in very good dividend years for INNO


3. JAYA TIASA


SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2019

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2019
30 Sep 2018
30 Sep 2019
30 Sep 2018
$$'000
$$'000
$$'000
$$'000
1
Revenue
232,526
211,022
232,526
211,022
2
Profit/(loss) before tax
31,026
1,476
31,026
1,476
3
Profit/(loss) for the period
16,165
848
16,165
848
4
Profit/(loss) attributable to ordinary equity holders of the parent
15,774
871
15,774
871
5
Basic earnings/(loss) per share (Subunit)
1.63
0.09
1.63
0.09
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 ($$)
1.2200
1.2100


Revenue Rm232.526 Millions

Profit After Tax = Rm15.774 Millions

NET PROFIT = 6.7%


Now See JTIASA (Jumping Tiger) Latest Result


SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2023

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2023
30 Sep 2022
30 Sep 2023
30 Sep 2022
$$'000
$$'000
$$'000
$$'000
1
Revenue
248,003
207,807
248,003
207,807
2
Profit/(loss) before tax
93,035
46,472
93,035
46,472
3
Profit/(loss) for the period
66,835
33,948
66,835
33,948
4
Profit/(loss) attributable to ordinary equity holders of the parent
66,833
33,985
66,833
33,985
5
Basic earnings/(loss) per share (Subunit)
6.90
3.51
6.90
3.51
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 ($$)
1.5100
1.4200


Revenue Rm248.003 Millions

PAT = Rm66.833 Millions

Profit by Percentage = 26.94%


From only 6.7% to 26.94% is a jump of 390%


What businesses can make 26.94% REAL AFTER TAX PROFIT

And what business can increase profit by a whopping 390% in just 4 short years!


Above figures tell us Palm Oil Companies are having their Best Growth Years like never before since their bull run years of 2008 & 2012 when Cpo prices were Rm3000 to Rm3500 a ton. After that Cpo crashed to the low of Rm1,700 a metric tom.  Today Cpo prices are Rm3,600 to Rm4,200

In those days One Hectare can produce 8 to 10 tonnes FFB. Today with New Improved Seedlings One Hectare can produce up to 18.5 tonnes of FFB (Fresh Fruit Bunches)


In light of historic past performance ALL PALM OIL COMPANIES Should be Rerated Upward.


AND SEE LATEST REAL TESTIMONIES FROM PALM OIL SMALL HOLDERS TO GIVE CONCRETE PROOF IN REAL LIFE


Five years on, the tide has now turned

Over the years, many smallholders have experienced some up and downs, but in recent years following the recovery in palm oil prices, they have also benefitted from the boom. — AFP photo




FIVE years have passed since we first visited Rumah Morgan.


Lots of things have happened during the past five years, from the unexpected change of federal government and the subsequent political turmoil, to the sweeping pandemic that compelled lockdowns across the globe.

Indeed, the period has not been kind for many of us around the world, but behind every dark cloud, there is a silver lining and for the residents of Rumah Morgan, that silver lining has been the rising price of palm oil.

Boon for smallholder planters

After dipping to a 10-year annual average low of US$601 per tonne in 2019, palm oil prices have been steadily increasing, reaching a new high of US$1,776.96 per tonne in March 2022 before settling to the new annual average high of US$1,276 per tonne for that year.

Such growth has been largely driven by rising demands for biodiesel associated with the ongoing Russia-Ukraine war, which broke out in early 2022, and most recently, the Middle East conflicts that began in October 2023.

Having somewhat normalised in 2023 with analysts estimating that the 2023 annual average price would settle at US$980 per tonne, palm oil prices are still looking robust with expectations of them breaching the US$1,000-per tonne mark in 2024 and beyond, due to sustained global biodiesel demand and lower growths in other edible oils caused by extreme weather conditions.


Revitalised community’

On our second visit to Rumah Morgan, we again received a warm welcome from the chieftain TR Morgan Sanda and his committee, but this time, we could see a revitalised community.

We were excited to learn that the village finally had piped water installed.



Jennifer says a substantial part of the earnings is reinvested into the plantation in the forms of maintenance works, replanting and settling the instalment payments for various equipment and machinery.

The previous transport issues had been addressed, thanks to the improved earnings from palm oil. Now, the majority of villagers have their own vehicles, with the Hilux pick-up truck being the preferred brand for many.




Now, the majority of villagers in Beluru have their own vehicles, with the Hilux pick-up truck being the preferred brand for many – signifying the encouraging growth that derives from oil palm plantation.

The population had also grown, but TR Morgan said it was not like it was in the olden days.

“Nowadays, it seems that each household is opting for only two or three children,” he told thesundaypost recently.




Now, the majority of villagers in Beluru have their own vehicles, with the Hilux pick-up truck being the preferred brand for many – signifying the encouraging growth that derives from oil palm plantation.

‘Helping out’

After a brief tour, we were introduced to a fresh face of the community, Paul Ngadan.

Now in his 30s, he studied at and graduated from SMK Baru in Miri and the National Youth Skills Institute (IKBN) Kuching, years before joining the offshore oil and gas (O&G) industry, where he stayed on for over a decade.

We were rather surprised to see an educated and talented individual such as Paul at Rumah Morgan as the majority of the younger generation from many rural communities would often opt for relocation to the more urban areas seeking better economic opportunities.

Moreover, we were curious as to why he, having been born and raised in urban Miri and worked in a rather ‘well-paying’ sector, would choose to settle in rural Beluru instead.

Recounting his story, Paul said he first met his wife, Jennifer Jarau, back during his IKBN Kuching days where she was also a student. The couple got married in 2009.

Jennifer’s family is among the members of the Rumah Morgan community who are active oil palm planters, tending to around 2,000 trees.

They established their small plantation in 2008 after having secured a plot under the Malaysia Palm Oil Board (MPOB)’s smallholder plantation programme.

Over the years, Jennifer’s family and many other smallholders in the area have experienced some ups and downs, but in recent years following the recovery in palm oil prices, they have also benefitted from the boom.


CALVIN COMMENTS:


ABOVE TELLS US OIL PALM SMALL HOLDERS ARE SEEING INCREASING PROFITS

NOW IF SMALL OIL PALM PLANTERS COULD SEE SUCH GOOD TIMES

2ND AND 3RD LINER LISTED PALM OIL COMPANIES WITH THEIR

BETTER POSITION TO SECURE FOREIGN PALM OIL FRUIT HARVESTERS

ABILITY TO GO INTO MECHANISATION TO SAVE ON LABOUR COST

BULK PURCHASE OF FERTILIZER TO GET LOWER PRICE

AND OVERALL ECONOMY OF SCALE 


SHOULD DO AS WELL OR EVEN BETTER!


THAT IS THE REASON WHY PALM OIL BUSINESS SHOULD BE RERATED UPWARD


WITH KIND REGARDS

Calvin Tan


PLEASE BUY OR SELL AFTER DOING YOUR OWN DUE DILIGENCE OR CONSULT WISE AND COMPETENT REMISIER OR FUND MANAGER





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2 people like this. Showing 4 of 4 comments

calvintaneng

READ FULL ARTICLE
Five years on, the tide has now turned
BY CHANG YI & RACHEL LAU ON JANUARY 7, 2024, SUNDAY AT 6:00 AM
https://www.theborneopost.com/2024/01/07/five-years-on-the-tide-has-now-turned/

2024-01-08 08:04

calvintaneng

Fcpo now Rm3850

cost of cpo production rm2000

very high gross profit of over 90%

which industry can give such good earnings

2024-01-13 00:38

darren2021

where to check cost of cpo production rm2000?

2 months ago

calvintaneng

Posted by darren2021 > 3 hours ago | Report Abuse

where to check cost of cpo production rm2000?

Call Ms Fong
Secretary of TSH Resources
Their cost Rm2,000 to Rm2,200
Tel 03 20840888

2 months ago

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