0335 GMT [Dow Jones] Indonesian palm oil production fell 9.6% in February on month while both domestic consumption and exports grew on month, according to data released by the Indonesian Palm Oil Association, otherwise known at Gapki. The data shows that in February palm oil production was just 2.7 million metric tons down from 3.0 million metric tons in January. As a result stocks in Indonesia fell to 3.7 million metric tons from 4.4 million metric tons over the same period. (lucy.craymer@wsj.com;Twitter: @lucy_craymer)

http://www.bloomberg.com/news/articles/2016-03-29/indonesians-ride-resurgent-rupiah-straight-to-singaporean-malls

Discerning buyers continue to build up for value buy.

Maybank FX strategist - IDR is expected to reach 12,000 against USD by year end as its government has been doing right things.

Public bank is known to be prudent. I find Public bank's retirement fund, a substantial shareholder in MKH, offer lots of comfort to invest in this company.

The Company says impact of El Nino dry spell is expected to be minimal as its plantation is located at the equator with adequate rain fall. 福地

Discerning buys built up and will continue approaching Q2 results in May.

This project is selling very well.
http://www.hillparkshahalamnorth.com/masterplan.php

Will not be surprised if EPS for 1H FY2016 in the range of 25 to 30 sen.

Property counters rebound from recent low ... IOIP, Matrix and Tambun

EPS expected to be exceed 30 sen. PE ratio is cheap less than 10 for a plantation/property company. Alliance DBS Research - 2016/EPS 32 sen, 2017/EPS 34 sen, 2018/EPS 36.5 sen BUT the assumption on CPO was RM2,000 per ton (CPO market value now - RM2,600)

Plantations - Little Consolation for Local Players
http://klse.i3investor.com/blogs/PublicInvest/93417.jsp

http://www.theedgeproperty.com.my/my/content/property-sector-reach-inflection-point-soon-says-affin-hwang

TS Dato Chen again bought shares via open market.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5030925

MKH's independent non-executive director sold shares in open market!

EPS expected to be exceed 30 sen. PE ratio is cheap less than 10 for a plantation/property company. Alliance SDB Research - 2016/32 sen, 2017/34 sen, 2018/36.5 sen based on CPO RM2,000 per ton (to be updated soon :-))

Plantation assets - RM1 billion (based on latest transacted value)
Property assets - RM500 million
Total - RM1.5 billion
Value per share - RM3.60

MKH's director and major shareholder bought shares from open market.

IDR: Enjoying the moment

The IDR has appreciated the most in Asia year-to-date, exceeding our relatively positive
expectations for the currency coming into 2016. In a low-growth, low-inflation global
environment, the IDR’s attractive FX valuation ‒ at least in nominal terms (Chart 1) ‒ as well as
high nominal and real yields have stood out, attracting strong portfolio inflows.

There are other reasons behind the improvement in Indonesia’s balance of payments: First, the
current account deficit shrank to 1.9% of GDP in Q3, due to sluggish domestic demand and a
smaller services account deficit (Chart 2). The latter reflects both a decline in transportation
services costs and rising tourism revenue. While Indonesia’s commodity exports growth remain
sluggish, it appears that the worst of the terms-of-trade shock is behind us (Chart 3).

Second, FDI inflows have been on the rise, particularly from Greater China and Singapore,
and concentrated in the utility sector (Chart 4). This trend may continue as a result of the
government’s recent decision to remove many industries from the ‘negative list’ for FDI. Third,
shrinking other investment account outflows seen in the Q3 2015 data suggest that
elevated USD-IDR spot and forward points have dampened importers’ FX hedging demand.
Furthermore, we note that FX liquidity has improved as a result of policy measures, such as
Bank Indonesia’s FX term deposits (Chart 5) and FX bill issuance.

Indonesia continues to display a better fiscal position than most other EM countries. The
2016 fiscal deficit target was set at 2.1%, with a planned increase of expenditure on
infrastructure and healthcare. Removal of gasoline subsidies and plans to introduce a tax
amnesty bill has given the government room to spend in these areas. Successful sovereign
external debt issuance also reduced supply pressure in the local bond market.

Indonesia’s macro policy framework remains on the right track. The key building blocks ‒
prudent monetary policy, a flexible exchange rate and pre-emptive risk management ‒ remain in
place. These have enabled a soft landing in the credit cycle ‒ inflation is contained, while IDR
liquidity has started to ease since mid-2015, as indicated by falling deposit rates even before
policy rate cuts (Chart 6).

These developments facilitated the latest policies to lower government bond yields ‒ giving tax incentives to local pension funds and insurance companies to hold government bonds (Chart 7) and lowering deposits and lending rate ceilings.

BI has become more focused on strengthening FX reserve cover in recent years. Both BI and
the government have indicated that the IDR should not strengthen beyond its fundamentals. FX
reserves have already started to rise in February (Chart 8). Factoring the positive
developments, while bearing in mind the FX policy preference, we change our year-end
forecast for USD-IDR from 14,500 to 13,500.

Remember few years back IOI acquired a plantation company owning a similar hectages ie. 15k ha or RM66k per ha for a consideration of RM1 billion. What you are paying now is for the plantation assets in MKH. You'll also get to buy property assets for free. SImple!

Now that MKH has crossed 1 bil market value, this may prompt certain funds (with mandate to invest in company of at least 1 billion) to consider to invest.

Cheapest plantation proxy. Growing plantation contribution.
Healthy sales of affordable housing. Reaping harvest from high unbilled sales.

It means something having Public Bank Group as your shareholder with 9.8% stake.

Thx K.H ... With plantation young age profile and strategic and sizable property landbank, MKH should command higher PE.

They say .. will go up to RM3,000
http://www.bloomberg.com/news/articles/2016-03-09/-enormous-impact-of-el-nino-on-palm-oil-seen-fueling-20-rally

Increase in crude oil price is positive to CPO price.

In fact if the one-ff gain is taken out, the profit margin in the property segment has been creeping higher. Good mix of products including with more high rise projects near the MRT/LRT.

http://www.bloomberg.com/news/articles/2016-03-03/indonesia-s-rallying-8-bonds-lure-funds-in-negative-rate-world

See the media coverage given to President Indonesia. That's a credible plan and will spur confident.
http://www.bloomberg.com/news/videos/2016-02-25/evolving-indonesia-jokowi-s-mission

Yes plantation earnings is expected to go higher on the back of higher CPO and PK prices and sales quantities and the resilient IDR. Q1 has EPS of 14 sen!

It is remarkable, given the soft property market, to see the unbilled property sales sustaining at this high level. Kudos to MKH!

Also paying lesser to the CPO levy in USD with the strengthening of IDR.

IDR has been resilient lately. Good news to Indonesia plantation company with USD debts.

http://www.bloomberg.com/news/articles/2016-02-15/india-s-palm-imports-rebound-from-first-decline-in-12-months

Higher CPO price, higher property profit and strengthening IDR yet price no movement!!

Win another project along Jalan Tun Razak. Next to Titiwangsa LRT and Monorail.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4995045

http://www.bloomberg.com/news/articles/2016-02-03/indonesian-finance-minister-bullish-on-rupiah-trajectory-in-2016

The sensitivity analysis of foreign exchange risks as shown in its latest annual report, MKH says if USD weakens against IDR by 5%, the PBT is to increase by RM12 million and vice-versa.

2016 EPS. Plantation could potentially contribute 10 cents while property may chalk up 20 to 25 cents. Happy Investing!

While others are affected, MKH says its own estates expect minimal El Nino impact as it is located at the equuator with adequate rain fall and good network of canals for irrigation.

lcng123 good one.
USD borrowing is also being liquidated.

The market is really bearish ..
30/9/2015 - Price 2.30 CPO price 2000
Now - Price 2.08 CPO price 2450

http://www.bloomberg.com/news/articles/2016-01-19/strong-el-nino-seen-sticking-around-as-cyclones-delay-demise

La Nina has in the past resulted in higher grains prices including soybean price.

http://www.bloomberg.com/news/articles/2016-01-05/el-nino-peak-has-weather-forecaster-warning-of-possible-la-nina

http://www.bloomberg.com/news/articles/2015-12-31/palm-oil-set-for-best-year-since-2010-as-el-nino-threatens-crop

Oh .. it is right only 0.77 sen per share.

This deal is not significant but is good in term of allocating its resources to best use.

Gain RM0.77 sen per share!
Is this right?

http://www.theedgeproperty.com.my/content/mkh-bhd-changing-better