madvirus
Thanks. Very good sharing.
Even at 20 MT/ha, it is about 50% more FFB production than current level. At 63,000 ha progressively maturing, we are looking at 1.26 million ton of FFB compared to current 660,000 ton in the next 3-4 years. This is 50% increase in production. Coupled with increase in OER to 20%, we are looking at big profit growth potential here, aren't we? What is your take on potential OER for Jaya Tiasa going forward as they are building up their oil mill capacity to 3 oil mills by Apr 2014?

The production cost you quoted here USD 330 (RM 1,054) pt seems too low for Jaya Tiasa who has relatively young palm, compared to RM 1,209 pt for Hap Seng Plantation. At CPO price of RM 2500 pt, and assuming cost of RM 1,700 pt, we are still looking at a profit of RM 200 mln (~ EPS : 20 sen) excluding contribution from the forest concession and plywood.

I can see tremendous growth potential for Jaya Tiasa hence its investment case as emphasised by Mr Koon over and over again.

Look forward to more insights and comments on my point above.

Jaya Tiasa has experienced tremendous growth in its FFB production. However, the Oil Extraction Rate (OER) has been unimpressive hovering around 9-10% for the past few years, compared against industry average range of 18-22%. Improvement in OER will surely drive its profitability. Can someone with industry knowledge educate us on why Jaya Tiasa's OER is so low? Is it due to lack of palm oil mills or is it due to the fact that the fruit trees are relatively young?

Jaya Tiasa has experienced tremendous growth in its FFB production. However, the Oil Extraction Rate (OER) has been unimpressive hovering around 9-10% for the past few years, compared against industry average range of 18-22%. Improvement in OER will surely drive its profitability. Can someone with industry knowledge educate us on why Jaya Tiasa's OER is so low? Is it due to lack of palm oil mills or is it due to the fact that the fruit trees are relatively young?