Tony Pua managed to present to us the facts and the history/background of 1MDB.. Good Job! However, I'm afraid it is bit "dry", boring and difficult for general public to appreciate the impact and implication of this financial scandal...

TSH is considered "highly" geared company.........and indonesia accounted for 80% of total CPO output.......RISKY.....

We maintain SELL on TSH Resources with an unchanged fair value of RM2.95/share. Our fair value implies an FY15F PE of 18.2x.

- We have reduced TSH’s FY14F EPS by 11.2% to account for lower share of profits in the TSH-Wilmar refinery.

- Share of profits in the TSH-Wilmar refinery swung from a positive RM7mil in 1QFY14 to a negative RM2.3mil in 2QFY14. This is in line with the trend of margin erosion recorded by the other refineries in Malaysia.

- Share of losses in the refinery contributed to an estimated 5.6% QoQ fall in TSH’s core pre-tax profit in 2QFY14.

- Also, TSH chalked up an effective tax rate of 12.9% in 2QFY14 versus 20.5% in 1QFY14 underpinned by incentives in respect of the Pioneer and Bionexus status.

- TSH reported a 42.3% YoY increase in gross profit in 1HFY14 on the back of a 13.3% expansion in turnover. Gross profit margin rose from 9.2% in 1HFY13 to 20.4% in 1HFY14.

- Revenue of the palm and bio-integration division improved 16.5% from RM454.9mil in 1HFY13 to RM529.9mil in 1HFY14 on the back of higher CPO price and production. EBIT margin inched up from 13.0% in 1HFY13 to 24.0% in 1HFY14.

- Average CPO price realised was roughly RM2,503/tonne in 1HFY14, 15.0% higher than the average price of RM2,177/tonne achieved in 1HFY13.

- On a QoQ basis, TSH’s average CPO price weakened 3.1% to RM2,463/tonne in 2QFY14.

- FFB production climbed by 27.4% YoY to 319,417 tonnes in 1HFY14. Comparing 2QFY14 against 1QFY14, TSH’s FFB output increased by 3.8%.

- We believe that TSH’s FFB production in Indonesia improved by 39.1% YoY in 1HFY14 while Sabah achieved a 4.8% decline in output. Indonesia accounted for about 80% of the group’s FFB output.

- EBIT of the wood products division inched down from RM1.5mil in 1QFY13 to RM0.4mil in 1HFY14. Revenue shrank by 21.9% YoY to RM20.4mil in 1HFY14 due to lower demand from Europe.

- Net gearing stood at 72.7% as at end-June 2014 compared with 68.2% as at end-Mar 2014. Gross borrowings amounted to RM916.0mil.

Source: AmeSecurities

SINGAPORE (Aug 25): Palm oil may fall further into a range of 1,950-1,968 ringgit per tonne, driven by a powerful wave 3.

This is the third wave of a five-wave cycle that started at the June 25 high of 2,511 ringgit. Based on the length of the wave 1, a Fibonacci projection analysis reveals a weak support at 1,998 ringgit, the 338.2 percent level, which looks vulnerable in view of the speed and the momentum of the fall over the past few days.

Most likely, palm oil will keep on falling to the range formed by the 361.8 percent and the 376.4 percent projection levels. Strategically, the target range will be confirmed when palm oil drops below its Aug. 22 low of 1,989 ringgit. - Reuters

Recall that Reuters had on 15-Aug-2014 reported that Indonesian lawmakers are looking to restrict foreign ownership of plantations to no more than 30% (from the current 95%). Subsequently, we gather that the latest news on 22-Aug-2014 which points towards more nationalist policy in Indonesia and the proposed restriction is extended to the insurance industry besides the plantation industry. While we do admit that the possibility of whether these proposals may be passed is still a question mark, we are now taking a view that the intention to limit foreign ownership in Indonesian do exist and would eventually materialize in the long-term. Hence, we believe that it is prudent to incorporate such risk in our valuation on planters with significant exposure to Indonesia by assuming lower Fwd. PE valuation. As a result, we have downgraded both CBIP (New TP: RM4.85; Old TP: RM5.60) and TSH (New TP: RM3.40; Old TP: RM4.00) to MARKET PERFORM (from OUTPERFORM). IJMP (New TP: RM3.50; Old TP: RM3.75) is downgraded to UNDER PERFORM (from MARKET PERFORM). TP has also been reduced for SIME (New TP: RM10.10; Old TP: RM10.35), KLK (New TP: RM23.80; Old TP: RM25.00) and GENP (New TP: RM9.55; Old TP: RM9.70).

Indonesia is only good for short term, never good for long term investment....look at their history of business and economic......the government keep changing their policy....

SINGAPORE (Aug 25): Palm oil may fall further into a range of 1,950-1,968 ringgit per tonne, driven by a powerful wave 3.

This is the third wave of a five-wave cycle that started at the June 25 high of 2,511 ringgit. Based on the length of the wave 1, a Fibonacci projection analysis reveals a weak support at 1,998 ringgit, the 338.2 percent level, which looks vulnerable in view of the speed and the momentum of the fall over the past few days.

Most likely, palm oil will keep on falling to the range formed by the 361.8 percent and the 376.4 percent projection levels. Strategically, the target range will be confirmed when palm oil drops below its Aug. 22 low of 1,989 ringgit. - Reuters

Please also read today Star paper, even Jokovi will also has to support the propose bill to strengthen his political supports...

Recall that Reuters had on 15-Aug-2014 reported that Indonesian lawmakers are looking to restrict foreign ownership of plantations to no more than 30% (from the current 95%). Subsequently, we gather that the latest news on 22-Aug-2014 which points towards more nationalist policy in Indonesia and the proposed restriction is extended to the insurance industry besides the plantation industry. While we do admit that the possibility of whether these proposals may be passed is still a question mark, we are now taking a view that the intention to limit foreign ownership in Indonesian do exist and would eventually materialize in the long-term. Hence, we believe that it is prudent to incorporate such risk in our valuation on planters with significant exposure to Indonesia by assuming lower Fwd. PE valuation. As a result, we have downgraded both CBIP (New TP: RM4.85; Old TP: RM5.60) and TSH (New TP: RM3.40; Old TP: RM4.00) to MARKET PERFORM (from OUTPERFORM). source: KENANGA

Invest with both eyes open.... Plantation counters share prices will continue to go down....thus, should sell and collect later....

More than 85% of TSH plantations is in Indonesia. My friend from Indonesia told me that the Indonesia politicians are very keen to push through the bill to gain support from their people (voters). If the proposed bill is materialized, TSH is in big "shit"....

根據《路透社》日前的報道指出，印尼國會正擬定草案，以將外資在印尼油棕種植園的持股頂限從現有的95%降低至30%，旨在保護當地原住民、加強環境管控以及開放市場予較小規模的印尼當地種植業者。

當中，肯納格認為吉隆坡甲洞會是受影響最大的大型業者，因該集團在印尼的曝險率共佔其總種植面積的53%。至於中型業者方面，CB工業（CBIP,7076,主板工業產品組）旗下所有的種植面積都是在印尼，惟目前都還處於未成熟的階段。

The above policy will definitely affect the overall plantation and palm oil mill industry........Should buy with cautious.

根據《路透社》日前的報道指出，印尼國會正擬定草案，以將外資在印尼油棕種植園的持股頂限從現有的95%降低至30%，旨在保護當地原住民、加強環境管控以及開放市場予較小規模的印尼當地種植業者。
若上述法案真的被落實，興業研究相信在印尼持有種植園的種植股將成為最大的輸家，特別是正從印尼業務享受顯注盈利貢獻的業者，包括森那美（SIME,4197,主板貿服組）、吉隆坡甲洞（KLK,2445,主板種植組）和陳順風資源（TSH,9059,主板種植組）。

Judging current property market conditions, they will just wait until IJM, Ekoworld and Tropicana have fully launched their projects at Kemuning area. If they all develop and launch at the same time, may be over supply in the same area. Thus, the best strategy is to hold on and plant oil palm. The land will generate reasonable profit from oil palm and land price will keep appreciating. Anyway, the current team are still very much oil palm man, will take time to organize a "fresh" property development team.

Albukhary, 137m injection to develop land does not make any sense to me. The logical reason to me why SAB injected 137m into its subsidiary Pembinaan Gejati sdn bhd is to repay the loan for the original purchase of the 644ac as RM5 x 43,560 = 140m, which is close enough to the 137m that was capitalised.

Albukhary, 1. SAB did not inject RM130 mil into the company. Please refer Chabalang's comment on 28 Jun 2014.

2. SAB land in Kemuning is just planted with oil palm. thus they are not in hurry to develop it. Being a cash rich company, I don't see why they need to sell the land at this moment. They can just keep it and develop themselves when timing is right.

Chinese managed company will not simply sell their land, especially freehold land at strategic location. The longer they keep, higher the land value. Thus, SAB is a counter for long term investor, not for speculator.

truly believe stock market is due for major correction...look at the recent financial result, more companies are not performance as expected.

SAB is a good counter for long term investment...but NOT for contra player..

SAB has announced in April, they are keeping the land for oil palm.. NOT for property development...

Thanks for sharing your view...

Wait and see, when SC query SAB on the price increase, they will reply that they will keep the land for oil palm....similar answer to last query..

Be careful.....the land is just newly planted with oil palm....I believe the owner will keep the land for quite some time....After all, their current business are doing fine, not in hurry to develop this pcs. of land....Apparently, the longer they keep it, more money they will make in the future.. SAB got holding power, keep for another 10 years, is fine to them....

Agreed. I was told many top and senior executives in Singapore corporations are from Malaysia. Recently most them have given out Malaysian citizenship due to current social, religion and political development in our "beloved" country.

(槟城9日讯）CHK企业顾问庄学勤博士指出，在厄尔尼诺现象、生物柴油计划和台风海燕三大因素推波助澜下，预料油棕股将被推高。
庄学勤指出，澳洲气象局4月表示2014年发生厄尔尼诺现象的机率超过70%。气候干旱的厄尔尼诺现象，也将导致棕榈油减产，棕油价格上扬。
“此外，政府将于7月1日起，在全国全面性使用B5（混合5%棕油和95%传统柴油）生物柴油。”
种植及原产业部长拿督斯里道格拉斯早前指出，全国3877家油站会在7月1日开始出售B5生物柴油，全国棕油生物柴油的使用量预计增至每年50万吨。另外，B7生物柴油计划明年推出市场。
庄学勤也说，超强台风海燕肆虐菲律宾之后，当地椰树被大量摧毁，导致椰油产量大减，世界则转向使用棕油。
据悉，海燕仅在东米沙也地区就损坏了3300万棵椰树，而椰树从种植到产油至少需要6至8年的时间。过后，椰油价格远远超过棕榈油价格，已经改变了食用油的基本面，许多消费者已开始转向棕油和种子油。
庄学勤相信，如果马股年杪可涨至2000点，种植股将是大功臣。

（吉隆坡13日讯）伊拉克动盪升级，原油价格週四欧美交易时段上涨2%至9个月新高，棕油价格週五也隨之走高。

交易商指出，原油价格走高、斋戒月前买家补仓及厄尔尼诺（ElNino）逐渐成形等，均是提振今日棕油价格的因素。

闭市时，大马衍生產品交易所8月份棕油期货，上升24令吉至每公吨2427令吉。

一名外资商品经纪公司交易员表示，你可以看到原油价格正在走高，更高的原油价格，將让棕油成为更具吸引力的生物柴油原料。

布伦特原油（Brent）周五上涨至每桶114美元，为9月以来的新高水平，基於美国对伊拉克採取军事行动后，市场担忧来自当地的原油供应可能中断。

此外，棕油价格也受惠於预测在斋戒月期间需求提升，同时种植工人將会休假，极大可能会影响7月份棕油收割及供应。

交易商表示，在过去5天內大马半岛异常闷热的气候，似乎是厄尔尼诺即將到来先兆，乾旱气候將影响棕油產量。另外，一名大马本地商品交易商则透露，天气开始逐渐炎热。

《路透社》市场分析员表示，技术面而言，棕油价格预料將上探至每公吨2437令吉阻力水平，若突破该水平，將进一步上涨至每公吨2487令吉。

另一方面，市场继续关注伊拉克国內动乱对原油价格的影响。澳洲悉尼的CMC Markets首席策略分析师麦卡尼表示，如果武装份子（吉隆坡13日讯）销售下跌，赚幅萎缩导致大马手套业者在2014年首季交出差强人意的成绩，安联星展研究分析员表示，下半年手套领域前景好坏参半，投资手套股应选择表现超越大市的高產尼品（KOSSAN，7153，主板工业股）。

进攻首都巴格达，布兰特原油价格可能会上涨至每桶125美元。

分析师称，目前市场关心的是动乱局势会否影响伊拉克原油的供应。如果真的爆发大规模內战，原油价格將会有较大波动。

特別是南部巴士拉油港是伊拉克原油出口的关键，每天有200万桶原油通过这里进入市场，如果巴士拉油港遭到破坏的话，原油价格可能会上涨至每桶125，甚至150美元。Oriental Daily

KUALA LUMPUR: Crude palm oil (CPO) futures prices on Malaysia Derivatives Exchange rebounded to close higher yesterday on the back of strong performance of soyabean oil prices on the Chicago Board of Trade.

Phillip Futures Sdn Bhd derivative product specialist David Ng said the market was bullish on firmer crude oil performance due to escalating tension in Iraq.

June 2014 increased RM10 to RM2,390, July 2014 added RM25 to RM2,411, August 2014 advanced RM24 to RM2,403 and September 2014 rose RM23 to RM2,400 a tonne.

Volume eased to 26,698 lots from 27,661 lots while open interest fell to 181,854 contracts from 205,339. Bernama

The location for Kemuning land is very strategic, surrounded by Kota kemuning, Bandar Rimbayu (IJM) and Tropicana Aman (Canal City). On the way to Rimbayu Sales gallery via Bukit Kemuning, you will pass by SAB's Land (on your right hand side). In future, Rimbayu residents will also able to access through North-south highway to Putra Jaya & KLIA and South Klang Valley Express (SKVE). For more information, you may visit Rimbayu sales gallery. If SAB choose to keep their land for another 5 year, they can easily sell it above RM50/sqft ( limited freehold land in that area)

The land at Kota Kemuning is under Pembinaan Gejati Sdn Bhd. 137M is to increased the paid up capital for the company.

Judging the current property market in Klang Valley, SAB may keep their land in Kemuning area for another 10 years...waiting for the next property boom.

Necro, look at bigger picture, our Malay friends can go to overseas for study under MARA loan, If they are doing well (2nd class upper), they practically no need to pay back their study loan....For this, their family have saved more than RM400K for their child education.... Can MCA help?? MCA cant even help those top students with straight A to get PSD or government scholarship or loan... Right now, good tertiary education is basis requirements to be competitive in jobs market.

Nowdays, I see so many Chinese youngsters either not working or only work for temporary job.These youngsters will not register themselves in governmental employment agencies, thus it do not include in national unemployment rate...I'm sure our employment rate is very much higher than reported rate.

Mr. Koon, I'm totally agreed with you. I used to work in GLC. Most of my colleagues are overseas graduated Malays with very good academic training and very well connected (with UMNO or VVIP from government). These Malays are smart and very competitive especially in Malaysia working environment. Chinese new generations will have "hard time" to compete with them in jobs market, even in private sectors. Life is getting tougher and tougher for Malaysian Chinese......

May God bless MAS passengers ........

Thanks, iafx...

how big is KSL's Land in Klang?