Dear friends of i3 Forum

We bought and Sold SOP. And bought back some since out there now not many safe and good stocks left to buy

And today we see SOP reported an excellent set of results

See

Profit (YoY)  up from 5.4 sen to 11.86 sen 

(Jump of 119%)

NAV also up from Rm3.75 to Rm4.09

Let us do a forward P/E calculation 

at 11.86 sen this qtr

Annualized 11.86 X 4

= 47.44 sen

At Rm2.82 now

The P/E is Rm2.82 divides by 47.44

= 5.94

That means SOP will double your money in 5.94 years

What about putting money in the bank?

At 3% per year

The P/E is 33.3 years to double your money

In that case it will be eroded by high inflation

Now let us look at SOP balance sheet (refer bursa)

It has Rm600 Million cash

Rm900 Millions in investments

Total is Rm1.5 Billions cash & investments

Its borrowings

Rm219.8 Millions & Rm224.8 millions

= Rm444.6 Millions total debt

Cash less debt

= Rm1.05 BILLIONS CASH POSITIVE

This SOP is an Excellent Growth Co

High Margin of Safety

High Earnings

Plus it has over 300,000 Acres of Palm oil Lands in the State of Sarawak

With potential conversion to

Data Center

Solar Farm (Sarawak going into Green Energy)

Industrial Parks

New Townships (Pan Borneo Highway opens access)

SOP is a long term buy and hold

Another plus point

In Peninsular there is a hike of 52% for diesel price

Sarawak & Sabah States are exempted and as such its earnings not impacted by extra transportation cost

SOP now Rm2.82 (P/E 5.95)

If we assign P/E 10 

= Rm4.73

Yes Rm4.73 for SOP is only a Fair P/E 10 Value

And one more 

See FCPO

Crude Palm Oil Futures

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