Likewise, most plantation companies listed in Bursa are seriously undervalued by their mark-to-market asset values, earning prospect and dividend yields.

Without real understanding of the supply/demand dynamics for the oil and fats market, many critics argued that current palm oil price (RM5,000+) is unsustainable. The same critics voiced same argument when CPO price was at RM3,000+ more than a year ago . So what is new?

Down to earth investors shall expect CPO price uncertainty in the next 1-2 years which largely hinge on demand growth vs supply growth. Nobody can possibly pinpoint the numbers into the future, just like how miserably wrong the critics/analysts were in the past one year.

Why should critics be alarmingly negative EVEN IF CPO price correct down to $4,000 (ie 20+ % from today's level}? I am not concern at all. The average realized CPO price for Q1 to Q3 2021 for Bplant was $4,072, THplant $3,478, SOP $4,263, MHC $4,167, Cepat $4,149. At these avg realized prices, these companies already making record earnings.

I am bullish that average CPO price for 2022 will stay above $4,000/-

On supply side :
(1) There will be minimum production growth from Malaysia and Indonesia in 2022 due to continuing labor constraint (Malaysia), lower fertilizer application in 2018/19 when CPO price was low, lower fertilizer application in 2020/21 due to supply/application constraint caused by lockdowns and acute labour shortage, poor upkeep of fields, minimum new planting and replanting in past 3-4 years etc.

(2). Relentless attack from NGOs, ESG pressure, 3 years new planting moratorium (Sept 2018 to sept 2021) in Indonesia, zero expansion in Malaysia since 2017 , delayed replanting activities etc, not to mention climate havoc, are going to seriously limit production growth for the next few years.

On the demand side,
(1). Strong demand recovery expected in 2022 due to minimum lockdowns, low inventory level in importing countries, demand for biofuels (especially Indonesia B30 mandate) , increasing usage of oleochemicals etc.

(2). Global palm oil consumption growth from 2011 to 2020 is averaging 5% annually. I think consumption growth rate shall resume from 2022 onwards with covid's impact subsiding

Where are we going to get 5% production growth (ie 3.7 to 4.0 mil MT of increase per year ) to match the demand growth in the next few years? Will there be significantly higher production of other edible oils (soya, reepseed, sunflower, canola etc) to replace palm oil ?

It's a million dollar question. I think there is reason why CPO price shot up significantly above the previous high.

Just sharing my thought.

I decide to top up at 45-46 sen level and hold it for 6-12 months. I think the selldown of steel counter is overdone. Steel prices is down but NOT out.

Simplt is truly undervalued, from asset value, earnings or dividend perspective. It is EPF‘s non stop sell down, due to ESG concerns, that caused the huge value destruction

https://www.cityam.com/covid-death-rate-not-rising-swap-travel-restrictions-and-mass-hysteria-for-cautious-optimism-as-omicron-mutation-is-super-mild-variant-who-and-coronavirus-experts-say/

Global oil and fat consumption shall recover strongly. Slow rate of production growth is unlikely to match the demand recovery. As such CPO price shall stay high throughout 2022.

https://www.cityam.com/covid-death-rate-not-rising-swap-travel-restrictions-and-mass-hysteria-for-cautious-optimism-as-omicron-mutation-is-super-mild-variant-who-and-coronavirus-experts-say/

That’s very good news. I think Global Consumption for oils and fats will rebound strongly and the anticipated slow pace of production growth will not be able to keep up to strong demand recovery. CPO price is expected to stay strong for 2022 .

It is loss making for the early years of operations which is nothing new. But it has remaining 45+10 years of toll collection.

The western economies is using ESG to narrow the competitive advantage that developing economies enjoy. It's a long term strategy to eventually move some jobs back to their countries. Companies/business too dependent and yet concentrated on a few western buyers will be subject to constant threat.

If the business is too dependent and too concentrated on a few western buyers, the company will always subject to great threat under disguise of ESG. Foreign labor issue will persist and cost will go up considerably especially with covid lingering.

@stockraider, the 4sen paid was the final dividend with respect to last financial year . I hope they will still pay an interim and final at least matching last financial year.

https://capital.com/palm-oil-prices-to-stay-firm-above-1-000-tonne-in-2022
Clear earnings visibility for 2022 and possibly 2023 too.

https://capital.com/palm-oil-prices-to-stay-firm-above-1-000-tonne-in-2022
That means there is clear earnings visibility for oil palm plantation companies in 2022 and possibly 2023 too.

That means there is good earnings visibility for oil palm plantation companies in 2022 and possibly 2023.

https://capital.com/palm-oil-prices-to-stay-firm-above-1-000-tonne-in-2022

https://biofuels-news.com/news/indonesia-to-ramp-up-biodiesel-efforts/

https://biofuels-news.com/news/indonesia-to-ramp-up-biodiesel-efforts/

Trapping the methane gas from POME from oil mill to generate electricity is nothing new and has been positive revenue contributors to many who venture in it.

ESG going to ruin a lot of industries in Malaysia. It is a scam by the WEST to force you out of business and it's a strategy to improve the relative competitiveness in their home countries.

JAKARTA: Malaysia’s palm oil production is only expected to recover after the Muslim fasting month of Ramadan, or by May next year, leading analyst Dorab Mistry told a virtual conference on Thursday.

This is because it will take some time for the impact of relaxed rules allowing new workers in Malaysian plantations to be felt.

Mistry said that Malaysia’s palm production this year will likely stand at 18 million tonnes “at best”, and rise to 19 million tonnes next year.

JAKARTA: Malaysia’s palm oil production is only expected to recover after the Muslim fasting month of Ramadan, or by May next year, leading analyst Dorab Mistry told a virtual conference on Thursday.

This is because it will take some time for the impact of relaxed rules allowing new workers in Malaysian plantations to be felt.

Mistry said that Malaysia’s palm production this year will likely stand at 18 million tonnes “at best”, and rise to 19 million tonnes next year.

JAKARTA: Malaysia’s palm oil production is only expected to recover after the Muslim fasting month of Ramadan, or by May next year, leading analyst Dorab Mistry told a virtual conference on Thursday.

This is because it will take some time for the impact of relaxed rules allowing new workers in Malaysian plantations to be felt.

Mistry said that Malaysia’s palm production this year will likely stand at 18 million tonnes “at best”, and rise to 19 million tonnes next year.

JAKARTA (Dec 2): The global supply of palm oil will see only "minimal growth" in the 2019-2022 period, due to production issues caused by unfavourable weather and labour disruption in Malaysia, leading analyst James Fry said on Thursday.

"It will take another 12 months before Southeast Asian palm oil output is running ahead of its level at the end of 2019," Fry said, despite improved output expected out of Indonesia in the second half of next year.

"In other words, I anticipate three full years with no growth," he told a virtual conference.

JAKARTA (Dec 2): The global supply of palm oil will see only "minimal growth" in the 2019-2022 period, due to production issues caused by unfavourable weather and labour disruption in Malaysia, leading analyst James Fry said on Thursday.

"It will take another 12 months before Southeast Asian palm oil output is running ahead of its level at the end of 2019," Fry said, despite improved output expected out of Indonesia in the second half of next year.

"In other words, I anticipate three full years with no growth," he told a virtual conference.

JAKARTA (Dec 2): The global supply of palm oil will see only "minimal growth" in the 2019-2022 period, due to production issues caused by unfavourable weather and labour disruption in Malaysia, leading analyst James Fry said on Thursday.

"It will take another 12 months before Southeast Asian palm oil output is running ahead of its level at the end of 2019," Fry said, despite improved output expected out of Indonesia in the second half of next year.

"In other words, I anticipate three full years with no growth," he told a virtual conference.

Controlling shareholders paid $2.30 to buy over 15% it's share from Innoprise plantation very recently and this increase their shareholding from 53.04% to 68.04%. I think privatisation will come a year later and the offer price will have to be higher than $2.30 to succeed.

Meanwhile, enjoy the good dividend payout of consistently 60$ min. FY2021 EPS shall be around 23 sen and dividend shall be about 14sen including the 1.5 sen ist interim already paid.

you can't go wrong buying MHC at 90+sen.
YTD earning about 14 sen. Full year expected 20sen. forcast PE 4.5x. steady dividend, conservative and prudent management, high intrinsic value for the lands.

Recent private placements are at much higher price that it is now.
latest 4th tranche 3.4 mil share @ 95sen
3rd tranche 16 mil share @ 95sen
2nd tranche 50.6 mil share @ 92 sen
1st tranche 20 mil share @ 90sen.
Isn't it obvious that if you buy now at 84.5sen you are smarter than the private placement investors.

I decided to exit without waiting for the special dividend. Without plantation, it's performance can not justify the share price.
2Q (Sept qtr) EPS is (0.81 sen)
YTD (2qtrs) EPS 0.07sen.
Future earning seem uncertain.
Present share price is supported by share buyback and the special dividend.

Omicron in US is expected anyway and therefore may not be the factor causing wall street to closed lower. I think the market is responding to faster tapering due to strong economic growth in many regions and high inflation.

Very tough for airline in face of new variant, high fuel cost and high operating expenses.

will Omicron change the glove's demand and supply situation ?
May be it is more a sentiment change.

@muttsinvestor, there is no foreign shareholders in Bplant. Even local government institutions like EPF , KWAP and PNB are not listed in the top 30. As Bursa is in coma (infected by Covid) price drifting lower is inevitable.

Joerakmo, dividend’ yield is defined as the percentage a company pays out annually in dividends per dollar you invest. So, it is clear that DY is always on the basis of 12 months of a financial year .

@joerakmo, to be fair to Calvin, he is not wrong on Bplant's dividend yield because dividend yield is calculated based on 12 months period.

Bplant's EPS Jan-sep is 6.97 sen. Dividend paid/declared 4.35sen (ie 62% payout ,complying to policy).
Full year EPS is expected to be about 11.30 sen based on the assumption that the final qtr result is just the same last qtr.
Based on dividend policy of 60%, full year dividend expected shall be 6.8 sen (60% x 11.3 sen)
Based on share price of 69sen, dividend yield is 9.85% (6.8/69.0 x 100%)

Similarly, dividend yield for Taann, Swkplt,MHC, Cepat, Kim Loong, Hsplant will also be potentially 8 to 13% ie merely based on their traditional dividend payout ratios

i am still hopeful for an interim dividend to be announced later.

I think the result for sept qtr is commendable especially it was a very challenging operating environment then. MNRB's broad insurance portfolio is capable to provide overall financial performance consistency.

1. The Reinsurance segment did not do as well despite much higher earned premium.
2. The general takaful profit contribution was slightly lower and revenue was flat.
3. However, The Retakaful and Family Takaful segments perform very well and able to compensate most of the shortfall in the Reinsurance segment

What pull down the performance wasn the financial asset fair value loss of - $2mil (vs gain of $22 mil in corresponding period), and share of result of associate of minus $2 mil (vs $5 profit in corresponding period). Without these factors, especial fair value loss, the company could have performed much better than yoy.

In the overall, profit before tax for the qtr still the same yoy. Tax is higher by $4mil which account for the difference in NPAT yoy.

No mention of interim dividend . Hopefully, the company will follow up with interim dividend soon.

KUALA LUMPUR, Nov 30 -- MNRB Holdings Bhd's net profit eased to RM38.83 million in the second quarter ended Sept 30, 2021 (Q2 FY2021) from RM42.36 million in the same period last year.

Revenue, however, rose to RM730.04 million versus RM706.81 million previously, it said in a filing with Bursa Malaysia.

PBT is $47 mil same as last year.. But higher tax this qtr has resulted lower NPAT. EPS 5 sen.
Surprisingly, difficult operating environment during 3 Q didn’t affect performance.

When the show is over, the rush to exit the theatre may cause trample.

Based on the spectacular share price rebound, it seem that Omicron fear has resulted surge in glove demand, industry overcapacity problem is solved and ESG issues no more a issue. Is it really the case?

Agriculture is the future especially with ESG grievances and climate change issues. Farmland is going to be a lot more expensive and agriculture produce price will go higher .

Agriculture is the future especially with ESG grievances and climate change issues. Farmland is going to be a lot more expensive and agriculture produce price will go higher .

Agriculture is the future especially with ESG grievances and climate change issues. Farmland is going to be a lot more expensive and agriculture produce price will go higher .

Agriculture is the future especially with ESG grievances and climate change issues. Farmland is going to be a lot more expensive and agriculture produce price will go higher .

Agriculture is the future especially with ESG grievances and climate change issues. Farmland is going to be a lot more expensive and agriculture produce price will go higher .

https://newswav.com/A2111_rAM3cV?s=A_0FdZi22
Bill gates is betting big on farmland

https://newswav.com/A2111_rAM3cV?s=A_0FdZi22
Bill gates is betting big on farmland!

https://newswav.com/A2111_rAM3cV?s=A_0FdZi22
Bill gates is betting big on farmland .

ESG politics will eventually curtail CPO supply and will push price higher and accelerate plantation assets appreciation.

@Stockraider, Wa Sudah Tau and therefore adding more on Friday and this morning. .
I can’t agree more.
My reason for buying plantation stock is deem buying the landed assets at a small fraction of the intrinsic value ( yet land prices appreciate over time) , at the same time enjoying 20% earnings on investment for 2021 ( based on share price I paid).

In 27th Nov Starbiz, it highlighted planters making record profit but share price of the big plantations are about 60% below the peak as investors disinterest in them because of ESG , particularly on land usage and deforestation! But the irony is , because of ESG compliance limiting production and supply, CPO scaled record price never seen before and consumers are enduring high food inflation . If the ESG belt is further tightened, CPO price or edible oil price in general will go up further .
So, what’s the so called responsible investors , in particular foreign institutions and our local sovereign funds , hope to contribute to society at large ?