https://www.freemalaysiatoday.com/category/business/2021/12/13/malaysia-moving-into-2nd-generation-biojet-fuel-production/

With strong support from China to Asean and considering the world wide inflation, CPO price will remain attractive for a long time. An equitable revaluation of palm oil counters will happen in the coming months if not sooner.

@ Johnzhang. Apart from EPF selling, personally, I believe the following factors contributed to the under valuation of palm oil counters at the moment:

1. BIs' analysts negative reports

2. Issuance of call warrants by BI. They are betting the price to go down, thus makan the call warrant premium. If the price goes up , they also win because they have accumulated substantial amount of shares at low prices before the issuance of warrants .

3. Buayas/market operators who are accumulating the shares by suppressing the price. Once the market move, they can play pump and dump many times.

If the CPO price continues to be good until end of this month, perhaps, we can see some action later.

In the meantime, just stay cool. Sabar lah.

Bottom line is to buy plantation shares whereby the companies pay dividend every year based on operating profits. A good management/owner to run the companies.

No need to worry about dividend trap.

@ Johnzhang,

Looking at the historical data is good to avoid the pitfalls and to identify the opportunity. But the actual performance of each plantation company under the present KLSE downturn may not be correctly reflected for many reasons.

What counts is to stick to the basics of investing, choose company that have:

1. A sound or solid financial fundamentals
2. A good management/owner to run the company.

If we stick to these rules and invest in the right companies, there is nothing to worry. Their share prices will move up eventually. CPO price will remain above 4,000 at least until 2022 and possibly beyond 2022.

Indonesia and Malaysia (two largest producers) are joining forces to fight against the unfair ESG label on palm oil. Check out the below article:

https://www.thestar.com.my/business/business-news/2021/12/06/four-countries-set-to-join-council-as-full-members

There are not many business sectors in KLSE that provide this type safe investment and opportunity.

If we are investing using our spare cash, just be patient and wait for the upturn in KLSE. We will be well rewarded.

@risktoreward

Cepat has one gas power plant and one biomass power plant. Both plants are profitable since 2016. Why worry?

@ risktoreward.

1. Please find below the info on gas power plant:

http://cepatgroup.com/our-business-power-plant-biogas/


2. Please find the YTD result comparison up to 3rd quarter extracted from Cepat's 3rd Quarters report:

Review of performance (Cont’d)

iii) Power Plant – Segment profit increased by RM2.77 million (61%) from Segment profit of RM4.57 million to a Segment profit of RM7.34 million. Despite a drop in Power Export to SESB by 44% mainly due to the shutdown maintenance of the Biomass Plant and its delay caused by the MCO border controls.


Hope the info stated above suffices.

I think the same with Cepat , YTD :8.6 cents, Full year should be around 14 cents ending up with about the same prospective PE of around 4.5 x based on the current price of 66 cents.

Cepat has power plant which has resumed full operation after end August and this will contribute positively to the 4th Quarters result.

Cool and Sabar.

@Markgold, Stockraider

Check out the below article :

https://www.thestar.com.my/business/business-news/2021/11/27/too-big-to-ignore

Based on the export data in this article, it is clear that the ESG issue is over politicized by the West and aping by our IBS' analysts. If the West stops buying from us, China, India , Pakistan, Philippines, Kenya and Turkey with their huge and growing population can easily cover the export shortfall.

For MHC and Cepat, there are small and medium scale well managed plantation companies, whereby the owners run the business hands-on, there is nothing to worry about the labor issue.

Looking at the strong CPO price in October and November ( above $5000), 4 Quarters results will be good. The expected prospective PE ratio for MHC and Cepat will be in the range 4.5 to 5.0.

https://bepi.mpob.gov.my/admin2/price_local_daily_view_cpo_msia.php?more=Y&jenis=1W

If the result is good, the share price will be reflected accordingly. There is nothing to worry.

Stay invested and be patient. Reward will come.

@Johnzhang, Thanks for your clear explanations stated above. Also agree with you that it is more accurate to evaluate the performance of the company based on PE rather than EPS. There are certainly many plantation companies with better PE based on 3rd Quarter results. And prospective PE based on the full year results.

https://www.globaltimes.cn/page/202111/1239573.shtml

China to buy US$150 Billion of agriculture products from Asean for the next 5 years, what will be the long term prospect for Palm Oil?

You have full control if you invest in shares using your spare money. In Cantonese, it says don't wear a hat too big for your head.

When you used your own money, you can have patient to wait for the sunshine after the rain. No need the umbrella.

Kiri beli Kanan lari. Jaga Jaga.

We should invest in share based on sound financial fundamentals and with good management. If the management is not good and cannot sustain performance during bad time, the share can go from "star/cash cow" to "question mark/dog" (borrowing the concept from BCG) when facing challenging environments.

CPO price can fluctuate but the management must be competent and steady. Otherwise....???

Have a nice day.

Based on the 3rd quarter report:


1. Investment in property : $43 Mio

2. Short term investment and cash in Bank : $44.8 Mio

3. Bank Borrowing : $ 62 Mio.

4.1+2 of $87.8 Mio is greater than $ 62 Mio.

5. Make your own investment judgement.

Non stop politicking is also killing this country. Our politicians spend more time playing politics than doing constructive works. Only good at barking in the parliament. Bring back the GST is the best solution to achieve an equitable tax system. Most of the countries in the world have GST/VAT, I am sure they know what works.

@Johnzhang. Agree with you on the IB analysts' actions. They are doing the country a disservice, especially on plantation stocks.

Environmental groups (Possibly IB's fund managers in disguised) can continue to attack Plantation companies with ESG, what the companies can do is to continue with their constructive works. Sooner or later, the truths will prevail. Good will triumph over evil!

@Calvin, Which palm oil counters got structured warrant?

When we write we need to write responsibly.

Your chart did not show the current iro ore price of US$117.

Susah lah EPF keeps selling. Better bet on other palm oil counters.

There are many plantation counters with more attractive PE.

scjm, sure or not? in Hokkien, Chun boh!

The risk of this counter is when EPF starts taking profits.

Based on solid production data for September and high CPO prices for the past 3 months, Q3 results will be impressive!

The production data just published for September looks solid. Coupled with record CPO price, it means that Q3 results will be impressive. Cepat cepat mari...

Mari mari cepat mari

Offer price is 0.65, but the current price is 1.30. Can someone please explain how it works? Thanks.

If fund managers do not appreciate plantation counter. There is a high chance of the small and medium plantation companies taking the privatization route. They can ignore the ESG issues and have their pockets full of money with even CPO price of $2500-3000. The current share prices do not make sense at all for these companies to continue their listings on KLSE. it will be interesting to see the development in the next few months.

Even during bad market mahu mari...

Who are benefiting from the affordable housing concept with extremely high density? I pity those people in Penang who still believe that they got a fair deal. Perhaps, one day they will wake up and realize that they have been brain-washed.

You mean the job of a banker?Like the wife put the money into FD, interest of 2% ( left hand of the banker). The banker put the money onto his right hand and loan the money to the husband at interest of 4%. Good business model and easy money.

Mari mari bagus nya.

Sampai bila.

https://www.thestar.com.my/business/business-news/2021/09/17/steady-earnings-ahead-for-palm-planters

When the overall market is not bullish, it is difficult to push the counter. Contra traders will take advantage to do day trading.

With this kind of stock price, if I am the major shareholder I wilm take it private and win big. Good target for privatisation.

Someone is collecting again............

Cannot understand the stock movement. Better talk less and listen more.

KLCI in negative territory but MHC in positive territory. Transaction volumes done more on ask price than bid price. What say you?

Food business is recession proof. 3A business is growing. PE and EPS are good. For those who have staying power, this counter will reward you handsomely. Normally, fund managers' eyes only focus on hot stocks until some buaya wake them up on the potential of this counter. Hold on tight and be patient.

The show begins..........

macam ayam mahu lari.

...... by playing with bid and ask price ( based on low quantity ). If no panic selling, it will be difficult for him to collect substantial quantity. May be another buaya will move in to make the game more exciting....

someone is collecting again........

who are the sellers? unless they play both bid and ask to slowly accumulating the shares. If hold on tight and be patient, to breach 93 will be sap sap soi.

Someone is collecting...

MHC is a well managed company, they have no problem with labor issue. The production data had been very consistent over the years. The results will be affected if CPO price drops to RM2000 but this will not happen for a long time to come. It will be a matter of time this counter flies. Hold on tight.

Ayam ada garang sedikit. Harap lah this time ayam tak lari.

Production data for August looks great. Traditionally, Q3 results was substantially better than Q2. Bearing this in mind and the high current CPO price, MHC is expected to announce a very good results in Q3. Looking at the EPS and PE, the current share price is a joke. Are the fund managers sleeping?