Yes. SOP profit will hit record high possible to break 300m

Have to ask yourself one question...if the rf division is so good why broadcom want to sell now instead if later after5g......broadcom ceo very good in m&a nvr undermine his vission...competition coming...sequeue profit.

What a remarkeble transform over last 8 years.

You can read his research...this interview very brief

Require more time to collect

Looking forward to see sop hit 300m for 2020

https://www.klsescreener.com/v2/news/view/608174

Indonesia aims to start making green diesel in 2022
DEC 4, 2019 08:28 AM
[JAKARTA] Indonesia plans to start producing green diesel from palm oil in 2022, with output estimated at 3.7 million kilolitres, a senior official in the Energy and Mineral Resources Ministry said on Tuesday.

Indonesia, the world's largest palm oil producer, wants to develop green diesel, a second generation biodiesel. It currently uses biodiesel made from fatty acid methyl ester (FAME) from palm oil, which is blended with fossil fuel.

Green diesel can be made by refining fossil crude oil and palm derivatives together in a single process, or refining palm oil in dedicated refineries.

FX Sutijastoto, director general of renewable energy at the ministry, told a parliamentary hearing his estimate of 2022 production was based a on business plan by Indonesia's state energy company PT Pertamina, although further studies were needed.

Pertamina is planning to develop refineries which can produce diesel from palm oil. Mr Sutijastoto said there seven companies were interested in building refineries to produce green diesel, including Wilmar International, a Singapore-based agribusiness firm.

By 2024, Indonesia should be able to increase production to 6.1 million kilolitres, according to ministry data presented to Parliament.

From January, the country is set to bring in the mandatory use of B30 fuel, a biodiesel with 30 per cent FAME blend. It would be expanded from the current 20 per cent bio-content.

The B30 programme has sparked palm price rally in recent months due to concerns that Indonesia will have less palm oil to export.

Indonesia is expected to consume 10.1 million kilolitres of FAME in 2022, ministry data showed on Tuesday.

President Joko Widodo sees the biodiesel programme as a way of offsetting a current account deficit caused by large energy imports, while also supporting demand for palm oil, one of Indonesia's main commodity exports.

Mr Joko has asked for further expansion of the biodiesel programme and ordered studies on mixing palm-based fuel with jet fuel.

REUTERS

Be patient

cost cutting messure and automation can help SOP save about 40M p.a. on top of additional rm100 cpo can contribute about PBT 30M p.a. to SOP

at 2600 to 2700 one quarter at least 55M

Result Review:
Sarawak Oil Palms Results above expectations

HOLD | RM 2.98 ▲

SOP’s 3Q19 PATAMI increased 74% to RM30.9m due mainly to margin improvement in plantation segment on higher production and improved palm products sold. On qoq basis, PBT increased more than 30 times to RM43.2m as higher production and transacted products volume helped to mitigate a weak ASP realised of PK products.

3Q19 saw both FFB and CPO production increased by 29% to 395K MT and 123K MT respectively, with PK production rising 36% to 27k MT. On the other hand, ASP realised of palm oil increased marginally by 1% to RM2,077/MT while palm kernel dropped 3% RM1,394/MT

9M19 profit was above ours and consensus’ estimates. Nonetheless, during the period, PBT was down by 38% as revenue slipped 20% to RM2.05bn. The decline in ASP realised and lower palm products volume, aided by weak other operating income of RM10.5m (-65% yoy) and lower margin from property segment contributed to the lower results.

Maintain HOLD with new TP of RM2.98 (RM1.98 previously) based on target P/B of 0.8x and 2-years average BV/share of RM3.72. We have revised our FY19 and FY20 earnings forecast higher to RM56.3m and RM79.1m respectively from RM20.7m and RM48.4m previously, as we adjusted our assumption on costs of sales and operating expenses lower.

Cost cut and mechanisation lowered production cost We estimate SOP’s 9M19 all-in cost of production for its upstream ops at MYR1,665/t (-8% YoY). We understand the lower YoY cost was due to cost cutting measures undertaken and introduction of more mechanisation to counter rising wage bills. As for fertiliser, we understand SOP has applied ~90% of its full-year fertiliser requirement in 9M19 (9M18: ~85%).

By mib

Finally cost cut measure taken by sop...very positive sign

Q3 2019 result just released

https://en.tempo.co/read/1276175/pertamina-set-to-distribute-b30-biodiesel-fuel

If cpo hit 3000 sop earnings will beyond 300m

Yes. Enning22 is right. But we invest this share beyond the current quarterly result. Share price always ahead and reflect the future earnings

no idea...mib's earnings projection for 2020 and 2021 is RM98M (based on RM2.3K per tonne) and RM159M (based on 2.4K per tonne) respectively.
so you figure out yourself.

Now RM2.7K/tonnes

TP RM2.9 based on 17x 2020 PER (with RM2.3K/T for 2020)

Every rm100 increase in cpo. Will ads rm30m to sop earnings

https://themalaysianreserve.com/2019/11/14/local-biodiesel-demand-reaches-record-levels-boost-to-cpo-price/

MUMBAI (Nov 14): Indian refiners have resumed buying Malaysian palm oil after a gap of nearly a month and contracted around 70,000 tonnes of shipments in December as Kuala Lumpur has been offering a US$5 per tonne discount over supplies from rival Indonesia, five traders told Reuters on Thursday.

The resumption in purchases by India, the biggest buyer of Malaysian palm oil this year, could support Malaysian palm oil prices, which are trading near their highest level in two years.

Indian refiners stopped purchases from Malaysia last month fearing New Delhi could raise import taxes or enforce other measures to curb imports after Kuala Lumpur criticised New Delhi for its actions in Kashmir.

Malaysian palm oil is available at a US$5 discount amid congestion at Indonesian ports, said a Mumbai-based dealer with a global trading firm. "This is giving a few buyers a reason to start buying Malaysian oil in small quantities to run their refineries."

2500 profit 160m 2600 profiy 190m 2800 profit 250

Further to the Company’s announcements made on 20 November 2017, 23 November 2017, and 27 June 2019, the Board of Directors of Kelington wishes to announce that its 97.2% owned subsidiary, Ace Gases Sdn Bhd has on 23 October 2019 commenced the liquid carbon dioxide production with an annual production capacity of up to 50,000 tonnes at the LCO2 Plant located at PT 21896, Kawasan Perindustrian Lot P, Mukim Kerteh, 24300 Daerah Kemaman, Terengganu.

This announcement is dated 23 October 2019.

Kelington Group Bhd
(Oct 2, RM1.32)
Maintain buy with an unchanged target price (TP) of RM1.68: Kelington Group Bhd’s (KGB) financial year 2019 (FY19) earnings look to be on track (first half of 2019 [1HFY19] earnings have already exceeded that for 1HFY18); we expect order book replenishment to match 2018’s level on a softer business environment. Work activities from China are expected to gain traction from 2H19. Separately, the liquid carbon dioxide (LCO2) plant will commence production by end-October, which should further enhance earnings visibility for the group and could drive a dividend per share and valuation rerating.

The slowdown in China’s semi-conductor fabrication spending is expected to turn around from 2H19. Over the past few quarters, KGB was able to sustain its earnings with more robust work activities in Singapore, which also garnered higher margins compared to other regions. The Taiwan operation is also expected to turn around in FY19 after securing its first solar project, with a 15–16% net profit margin.

KGB has already secured customers for 30% of its LCO2 capacity, mostly from cylinder refillers, and will be able to break even at this level of utilisation. The management targets to market the product beyond canister refillers to canned beverage producers. Furthermore, it has also begun looking to export KGB’s products by setting up storage tanks in Singapore for distribution. The plant is now guided to commence operation by end-October at the latest, after seeing a slight delay relating to the installation of the water pipes and power supply. We expect the overall group profit margin to improve once the plant starts up as industrial gas margins are higher at 30% versus 16–17% for the current business.

We maintain our “buy” call and TP at RM1.68, based on a 16 times calendar year 2020 price-earnings ratio. We believe KGB is a good proxy to ride on the recovery in the semiconductor capital expenditure cycle and we like its strong net cash balance sheet of RM70 million (23 sen per share) and its upcoming industrial gas business model. Downside risks to our “buy” call include a continuous slowdown in global semiconductor spending, and deterioration in existing business margins. — Affin Hwang Capital, Oct 2

Integrated engineering solutions provider, Kelington Group Berhad (“Kelington” or “Group”) is pleased to announce the opening of its new fabrication facility in Suzhou-Chuzhou Modern Industrial Park, China.

The 37,458-square-foot facility will be operated under the Group’s wholly-owned indirect subsidiary, KE System Integration (ChuZhou) Co. Ltd. The fabrication facility will be mainly involved in Engineering, Procurement, Construction and Commissioning (“EPCC”) of process systems for the electronics industry and fabrication of own-brand Ultra High Purity (“UHP”) gas and chemical delivery equipments.

The grand opening ceremony was graced by Mr. Hai Huang, Deputy Head of Chuzhou Investment Promotion Bureau, Mr. Li Da Ming, Deputy Director of Management Committee for China-Singapore Suzhou and Chuzhou High-Tech Industrial Development Zone and Mr. Xu Pei Chang, Deputy Secretary of China-Singapore Suzhou and Chuzhou High-Tech Industrial Development Zone.

Ir. Raymond Gan, Chief Executive Officer of Kelington Group Berhad said, “We have been operating in China since 2002 and today, China is one of our key international markets. Revenue from China represented 30% of the Group’s revenue in the first six months ended 30 June 2019.”

“This new setup is strategic for the Group as it allows us to further expand our pool of customers, including those from the electronics industry. In addition to that, our scope of services and capabilities will be broadened to handle more complex UHP projects such as handling the delivery systems for special gases.”
“We will be manufacturing our own design UHP equipments for our operations as well as offering it to other customers. This will lead to higher cost savings and better quality control, enhancing our operational efficiencies and cost competitiveness in China. We believe this will accelerate our growth trajectory within China, bolstering our UHP services and market share there.”

Moving again

Commentary Of Prospects The Group’s outlook remains bright on the back of strong replenishment of projects, while we look forward to the commencement of our new business division, manufacturing of liquid carbon dioxide. Wecontinue to gain traction in our project flow as we clinched an addition RM81 million worth of projects in 2Q2019, boosting our total new project orders to RM227 million in FY2019. A large bulk of the project orders is from the UHP and Process Engineering division. Inclusive of carried forward projects, Kelington’s total orderbook grew to RM486 million, of which RM312 million remains outstanding. We expect the Group’s performance to continue be driven by the UHP division in Singapore and China in FY2019. Furthermore, the Group made encouraging progress in its expansion plans for the Industrial Gases division. The commissioning of the manufacturing of liquid carbon dioxide (“LC02”) business is on track, with production expected to commence this year. We anticipate positive contribution from this new business from FY2020 onwards. The Group’s key operations outside Malaysia, which are Taiwan, China and Singapore are carried out in the respective local currencies of those countries. Hence, the Group enjoys a natural currency hedge, and this minimizes the Group’s exposure to the fluctuations in the currency markets.

Great result and there was 81m of projected awarded in 2Q2019...albeit no annoucement....with totalling of rm227m of new project awarded in 1h2019...

To institution shareholders

Mr Soh will help to expand the industrial gas biz. Industry outlook is superb

Industrial gas

Existing top 30 shareholders

Kgb director ex mox gm air liquide md

Trade war appears to see some progress after summit.
FM may start sell some after accumulated so much over last 6 months
Free float now about 30%. The balance control by founders and FMs.

KUCHING: Kelington Group Bhd (Kelington) remains optimistic on its Ultra High Purity (UHP) business and believes that its long-term growth outlook in China, Singapore and Taiwan remains intact.


The team at Affin Hwang Investment Bank Bhd (AffinHwang Capital) said despite a recent slowdown in China’s semiconductor capex, Kelington’s Singapore business will likely cushion the short-term decline driven by expansion, while Taiwan will likely see higher activities ahead with active bidding in solar projects.

“Kelington’s 2019E 29 per cent EPS earnings growth will likely continue to be driven by its UHP business,” it affirmed in a report yesterday.


Fabrication work for the plant’s equipment was done in China and will be delivered by the 1st week of July.

“While the focus has not permanently shifted away from China with the expansion of wafer fabrication plants still looking promising, the spotlight will shine on the UHP projects in Singapore, which also generally command a higher margin.”

While contribution from Kelington’s Taiwan region has fallen from a high of 11 to two per cent in recent quarters, Affinhwang Capital was appeased by management plans to refocus efforts in this region by actively bidding for more solar-related installation and maintenance projects. Notably, the bulk of the current RM1.2 billion backlog is still largely focused in China.

This was on the back of Kelington’s liquid carbon dioxide plant being on track to start up by the third quarter of this year (3Q19).

“The piling work for the site has been completed.


KGB has taken delivery of its tankers and is currently in the process of strengthening its chassis; it is on track for concurrent completion with the plant.

“Fabrication work for the plant’s equipment was done in China and will be delivered by the 1st week of July.

Meanwhile, construction work is expected to commence in mid-July and targeted to be completed by September.

“To date, management has spent RM30m out of the RM50m estimated project capex, with the remainder to be used progressively to expand the CO2 tankers fleet.

KGB has secured orders for 30 per cent of the capacity, mostly by cylinder refillers as the end gas users generally prefer to see the product quality once the plant has started operation.

“This plant is expected to contribute about 8 per cent of total profit in FY20E, which we have already factored into our model.”

KUALA LUMPUR: Kelington Group Bhd is confident of achieving another record year for the 12 months ending Dec 31, 2019 (FY19), which will mark a fourth straight year of record net profit after a blip in FY15.

The integrated engineering solutions provider swung into a net loss of RM2.62 million in FY15 as it recognised impairment losses on certain projects, trade receivables and amounts owing by customers. However, it rebounded the following year and has been profitable since.

Group chief executive officer Raymond Gan Hung Keng said FY19 profit growth will be driven by its ultra-high purity (UHP) business, which continues to be the group’s anchor of growth.

“I am confident we will [perform] better this year, thanks to a higher proportion of UHP jobs that bring higher profit margins,” he told The Edge Financial Daily in an interview.

He added that the bulk of the group’s outstanding order book totalling RM330 million will be recognised this year.

Kelington reported its highest-ever annual net profit in FY18, which jumped 59% year-on-year (y-o-y) to RM18.32 million with revenue up 12% y-o-y to RM350.02 million.

The record earnings had a favourable impact on its share price, which rose to an all-time high of RM1.39 on April 25. Its price has since pulled back, closing at RM1.25 last Thursday, but still up 51% from 83 sen a year ago. This brings the group’s market capitalisation to RM379.59 million.

On its performance in the first quarter of FY19 (1QFY19), it is on track to meet its full-year expectations. The group’s 1QFY19 net profit was up 5% y-o-y at RM4.84 million despite a decrease in revenue to RM76.41 million from RM86.55 million in 1QFY18.

Year-to-date, Kelington has clinched new projects totalling RM146 million, 87% higher than the RM79 million achieved in 1QFY18. This brings the group’s total outstanding order book to RM330 million, 70% of which are derived from UHP projects, followed by process engineering (16%), general contracting (4%) and industrial gas business (1%).

Gan declined to give the group’s order book target for 2019, except to say that it is still too early to tell.

The total value of projects clinched by Kelington last year hit record of RM424 million, surpassing the RM374 million achieved in FY17.

Gan said the group is tendering for RM1.2 billion worth of jobs, in Malaysia, Singapore, China and Taiwan.

He noted that so far, there has been no slowdown in the number of tenders from China, despite ongoing trade tensions between the US and China and negative growth data recorded on the latest worldwide spending on semiconductor equipment.

Of the group’s total outstanding order book, China accounts for 15%, followed by Singapore at 59% and Malaysia, 17%. The most recent order the group secured was from China, a RM53 million new contract for specialised engineering works under the UHP segment for wafer fabrication.

According to the US-based Semiconductor Equipment and Material International data, China remained as one of the top three world’s largest semiconductor equipment spenders in the first quarter of 2019 (1Q19) with billings of US$2.36 billion, down 11% y-o-y from RM2.69 billion. Still, China outperformed worldwide spending on semiconductor equipment, which declined 19% y-o-y to US$13.79 billion.



Industrial gas business to take off in FY20

On its industrial gas business segment, where it made its first foray in 2016, Gan said the business is profitable albeit its contribution to the group’s revenue is still immaterial.

However, he expects its contribution to take off from FY20 when the group’s liquid carbon dioxide (LCO2) manufacturing plant in Kerteh, Terengganu commences production in 4Q19. It is setting aside RM60 million in capital expenditure for the new plant, half of which will be used this year and the rest progressively over the next five years.

Already, Kelington has secured orders for the new LCO2 plant, which will take up some 20% of total annual capacity of 50,000 tonnes.

Additionally, it has secured a 10-year contract to supply on-site nitrogen gas to a photovoltaic manufacturer’s manufacturing plant.

https://www.thestar.com.my/business/business-news/2019/05/21/rhb-research-retains-buy-on-kelington-with-higher-target-price/

Pls expedite made in china 2025

KWAP and now kenanga growth fund as kgb substantial shareholder. Prospect is good

Another substantial holder emerged

crack spread widen. oil price mom up benefit refiner, oil price mom down refiner go holland

Need to secure investors before proceed else where to get funding n financing. Like ecrl trx the investors are government. Watch out

Without investors project cant start...watch out

TRX. Also need yo find investor

No investor how to build no funding and where to finance for the projects. Have to wait the plan out 1st.

Govern will sit there to share profit. While 60% owned have to folk out funds. Need to wait the blue plan out otherwise 1st few year just dump fund in

Develop over 20 to 25 years. The most inportant is to get financing and look for investors. Not to forget 1.2B deposit must be paid within 60days

Incorporated 2 comp in china in dec18 and apr19. Hmm....