Posted by nsk82 > 2014-05-25 18:41 | Report Abuse

it is always inspiring to read your writings. Keep it going strong and long life, like Dr. M

Posted by vincentcwx > 2014-05-25 20:11 | Report Abuse

Thank you for sharing.

Posted by Lim HangKok > 2014-05-25 20:43 | Report Abuse

"I just bought shares that went down the most in terms of percentages. You can say that I started blindly."
OMG Mr. Koon get rich by luck. Beside the courage to take risk, luck is important as well.

Posted by soojinhou > 2014-05-25 21:01 | Report Abuse

Good read. Market collapse is the best opportunity for a fundamentalist.

Posted by ramkarpalsingh > 2014-05-25 21:21 | Report Abuse

Thank you for sharing Mr. Koon. So the benefit of 'luck' definitely your main investment success. 'luck' require a highly gifted 'EQ' in order to succeed in investment. No matter how high your 'IQ' is, if you do not have 'luck' or 'EQ' then you are doomed in investment.

Posted by nsk82 > 2014-05-25 21:46 | Report Abuse

i think Mr. Koon is being humble with his writings. He is a savvy businessman; and knowing full well that China will not sabotage HK

Posted by nsk82 > 2014-05-25 21:54 | Report Abuse

Taiwan was advanced country ?It is a high income country. Please go read up world history.

Ignorance kills

Posted by Linabee > 2014-05-26 08:51 | Report Abuse

Like x3! Thanks for sharing mr koon! Tragedy gives clarity....

Posted by Jacky Ching > 2014-05-26 09:17 | Report Abuse

any registration request ?

Posted by Koon Yew Yin > 2014-05-26 09:31 | Report Abuse

Jacky Ching, What do you mean when you say any registration request? If you are talking about my investment seminar on 1st June, please read the announcement carefully and you will know what to do.

Posted by fela > 2014-05-26 10:31 | Report Abuse

Hello Ir. Koon,

I live in Sabah. I am interested in Sabah Oil Plantation Stocks.
Do you have any recommendation?

thanks

Posted by DOROTHY10 > 2014-05-26 11:13 | Report Abuse

TQ Mr Koon for sharing yr investment style / strategy. Hope can attend nx seminar as I'm away on 1/6/2014! I'm impressed how well you accumulate yr wealth & not stingy when giving out scholarship!

Posted by ozzie75 > 2014-05-26 12:18 | Report Abuse

取之社会, 给于社会

Posted by fela > 2014-05-26 14:11 | Report Abuse

.
sop

You are right... absolutely correct. Since I live in Sabah...Iand I like to see with my own 2 eyes and hear from staff and management.... by visiting them.

Thanks

Posted by lloydlim > 2014-05-26 14:35 | Report Abuse

Welldone!

Posted by Steven Yong > 2014-05-26 17:15 | Report Abuse

Tsh is the best yielding plantation, also with many young trees. Will mr koon consider them?

Posted by kiasutrader1 > 2014-05-26 18:46 | Report Abuse

Someone contacted me (kiasutrader@gmail.com) to register for the afternoon session for Mr Koon's seminar on Sunday 1 June using email username InvestKCL but the email address is not reply-able. Please re-submit. Thanks

Posted by chang0509 > 2014-05-26 20:01 | Report Abuse

Mr Koon, can you explain whether the result newly announced is encouraging? http://www.bursamalaysia.com/market/listed-companies/company-announcements/1633745

Posted by chang0509 > 2014-05-26 20:01 | Report Abuse

Tq. Can we enter at current price? Or wait first

Posted by Koon Yew Yin > 2014-05-26 22:04 | Report Abuse

The following is an extract from Kulim's 1st Q result: Revenue, FFB production and selling CPO price are all improved. But I cannot understand why the EPS is so poor. Perhaps one of the readers who is an accountant can explain to us.

Review of the Performance of the Company and Its Principal Subsidiaries

Group Results and update

The Group recorded revenue of RM830 million for the quarter under review compared to the corresponding period 2013 with revenue of RM715 million, an increase of 16.06%.

The Group recorded a PBT of RM91 million for the first quarter 2014 compared to PBT of RM33 million for the corresponding period in 2013, an increase of 178%.

Plantation Operation - Malaysia

The Group’s FFB production for the first quarter 2014 was at 177,399mt compared to the corresponding period in 2013 at 159,059mt an increase of 11.53%

The Group’s cumulative CPO production for the first quarter 2014 was at 59,964mt. This was 16.33% higher compared to the CPO production for the corresponding period in 2013 of 51,545mt.

Total FFB processed by the Group mills for the first quarter 2014 was at 287,569mt which was 13.62% higher compared to the corresponding period 2013 of 253,091mt. Total FFB processed was inclusive of crops purchased from outside the Group.

The Group’s OER for the first quarter 2014 was marginally higher at 20.85% compared to 20.37% for the corresponding period 2013.

Malaysian plantation operation achieved average CPO price of RM2,585 and PK at RM1,756 per mt respectively for the first quarter 2014 compared to RM2,475 and RM1,184 per mt for CPO and PK respectively for the corresponding period in 2013.

Plantation Operation – Papua New Guinea & Solomon Island

NBPOL Group produced 455,988mt FFB in the first quarter 2014 which was 12.54% higher compared to the corresponding period in 2013. Together with crops purchased from outside the Group, NBPOL Group processed 618,880mt FFB for the first quarter which was 10.3% higher compared to the corresponding period in 2013.

NBPOL Group’s cumulative CPO production for the first quarter 2014 was at 137,031mt.
This was 12.5% higher compared to the CPO production for the corresponding period in 2013 of 121,758mt.
NBPOL Group’s cumulative CPO production for the first quarter 2014 was at 137,031mt.
This was 12.5% higher compared to the CPO production for the corresponding period in
2013 of 121,758mt.

NBPOL Group’s OER for the first quarter 2014 is at 22.14% compared to the
corresponding period in 2013 of 21.7%.

NBPOL Group’s achieved CPO price averages of USD907 per mt for the first quarter 2014 compared to USD878 per mt achieved for the corresponding period in 2013.

Posted by ivan2787 > 2014-05-26 23:58 | Report Abuse

Mr Koon, i found this "However, its earnings were RM38.13mil compared with RM345.15mil a year ago when there was profit from discontinued operations net of tax of RM339.3mil. Earnings per share were 2.98 sen."
in the news reported in http://www.thestar.com.my/Business/Business-News/2014/05/26/Kulim-profit-from-continuing-ops-jumps/

I think this explained why Kulim EPS is so poor as compared to the corresponding period 2013.

Posted by chang0509 > 2014-05-27 00:04 | Report Abuse

should we buy or sell? Still got huge potential in this stock?

Posted by kelvin_ik4u > 2014-05-27 00:46 | Report Abuse

Quick Financial difference Q1'14 vs Q1'13:
- My 2cents summary: Even through EPS Q1'14 vs Q1'13 increase to 543% ratio (exclude one-time discontinue operation earn RM 339M), Net Profit margin is still very low vs revenue generated, with high PE ratio = 36.9 vs other same palm oil industry market.

Quarterly ($M)
(FYE Dec) 1Q14 1Q13 % YoY Remark
Revenue 830 715 16.08%
PBT 91 33 175.76%
Net Profit 38 6 533.33% exclude discontinue operation earn
$339M (one time deal)
EPS 2.96 0.46 543.48% exclude discontinue operation earn
$339M (one time deal)

Operational:
Prod FFB (mt) 177,399 159,059 11.53%
CPO (mt) 59,964 51,545 16.33%
Total FFB 287,569 253091 13.62%
processed (mt)
OER (%) 20.85 20.37 2.36%

Sales
CPO (t) 2,585 2,475 4.44%
PK 1,756 1,184 48.31%

Plantation - NBPOL
Combine FFB 618,880 556,990 10.30%
nucleus (mt)
CPO 137,031 121,758 12.50%
OER (%) 22.1 21.70% 2.03%

Posted by Koon Yew Yin > 2014-05-27 01:01 | Report Abuse

The current price of Kulim is lower than the average price for the last 3 years and basin on this I have been accumulating it in the last few months. Although its 1st Q EPS is not so good, I believe it is very much undervalued. During the last 3 years they must have made some money and planted more area and also increase FFB production. I am looking forward when the management start develop their plantation land in Johore which must have appreciated a lot. I am sure one day they will develop properties for sale like KLK and IOI.

I hope some smart accountant or readers will tell me that Kulim is not a good investment for the long term.

Posted by solvent > 2014-05-27 10:10 | Report Abuse

If we were to include the special dividend RM0.90 paid in Jan 2013, RM3.4 plus RM0.90 = RM4.4, Kulim share price already at historical high.

Posted by sunztzhe > 2014-05-27 10:32 | Report Abuse

Kulim's core business is in Palm Oil biz in Malaysia and overseas. Further catalyst for higher share price will come from:
- increasing volume of CPO production and higher CPO selling prices in the future
- announcement of new property development projects in its Johor plantation lands
- New Oil & Gas servicing business in Pengerang Johor

Price downside is very limited as this level but the future price upside will be much more when the above catalyzing factors gain traction over time.

Posted by Koon Yew Yin > 2014-05-27 10:42 | Report Abuse

solvent, the highest price was Rm 5.40 about 18 months ago before payment of the 90 sen special dividend.

Posted by solvent > 2014-05-27 11:36 | Report Abuse

Noted. Thank you Mr Koon for your info. Mislead by adjusted price chart.Sorry for that.

Posted by mmtalents > 2014-05-27 17:50 | Report Abuse

"Why should I work so hard when it is so easy to make money from the stock market?" this statement make me ponder..

Posted by mmtalents > 2014-05-27 18:28 | Report Abuse

should we all not work hard now and dive into stock market?

Posted by cschua > 2014-05-27 22:48 | Report Abuse

Mr Koon, I thought you owned Xingquan. Have you given up hope on China stocks listed in Malaysia? My opinion is their accounting book cannot be trusted.

Posted by stockoperator > 2014-05-28 01:11 | Report Abuse

IF we are re-rating plantation companies based on CPO price fluctuation, then how many times we have to re-rated it in a year if it fluctuates in a wide range?

Even so, can we wait for CPO price to stabilize above Rm3000 before we call for re-rating. IS it not too soon Now for re-rating as price just manages from Bottom half a year ago?

Having said that, i sure agree on long term perspective.

Posted by johnny cash > 2014-05-28 07:27 |

Post removed.Why?

Posted by stockoperator > 2014-05-28 14:37 | Report Abuse

It is Not an easy call for re-rating. Well who knows CPO might Hit above Rm3000 few months from Now?

Even if it did, what price do we pay for plantation stocks? So we better Buy now, is it so?

Posted by up41 > 2014-05-29 14:32 | Report Abuse

Kulim overseas operation in PNG is interesting. Sales in PNG is more than double that of Malaysia but its profit is only 1.6 time that of Malaysia. Could it be the drop in currency value of PNG or younger trees or something else ? Looks like the future of Kulim depends how the operation in PNG is managed.

Posted by up41 > 2014-05-29 14:49 | Report Abuse

Mr Koon, you use 70000 per Ha as valuation basis to come to conclusion that Kulim is under valued. But could it be because Kulim major planted area is in PNG which yield lower than Malaysia therefore a lower than 70K per HA should be used instead ?

Posted by bgoon99 > 2014-06-01 10:30 | Report Abuse

pls factor in div paid out...Kulim paid out RM0.9094 of dividend in Jan 2013, the price hence adjusted from RM4.80 to RM3.79...not too much being depressed...

Posted by kk123 > 2014-06-01 11:37 | Report Abuse

Kulim is already way overpriced
It's mgmt also is quite the type which sleeping most of the time
If they are not sleeping , maybe they are making a very bad deal or decision
Better to buy smaller cap plantation in Msia as the big cap already way overpriced with limited upside
For other countries can check out indo Agri or golden Agri

Posted by stockoperator > 2014-06-03 00:00 | Report Abuse

The Better metrics is EV (Enterprise Value) over EBITDA as plantation company has been hoarding cash for past 5 years.

Posted by stockoperator > 2014-06-03 00:03 | Report Abuse

If you all think plantation companies P/E has been high that is Not the accurate picture as their EV has been Low for the reason above.

Posted by Koon Yew Yin > 2014-06-03 00:16 | Report Abuse

I need a lesson from stockoperator. How do you calculate EV? Why do you say that plantation company is hoarding cash?

What do you think of TH Plantation, Kulim and Sarawak Plantation?

Posted by stockoperator > 2014-06-03 10:03 | Report Abuse

Hi Mr Koon,

EV is market capitalization + debt + preferred share + Minority interest - CASH. Lower is cheaper Or better as EV is used for price calculation for takeover target and we want to pay cheaper price for good company.

Generally, from records of most plantation companies their cash level is increasing for past 5 years as such EV NOW is cheaper for cash rich plantation and well managed company.

It is general trend they keep cash for future expansion and re planting as they are growing bigger in size Now. It is interesting to see how this industry evolve in futures.

Mr Koon, as you are the Businessman, you are looking for deep value, Big deal, Big opportunity, Big jump in profit growth. Whereas I am looking for well managed companies.

Posted by Wei Liang Chew > 2014-06-04 22:44 | Report Abuse

seems that the Glen Arnold book is no longer available.

Posted by johnny cash > 2014-06-11 13:49 |

Post removed.Why?

Posted by johnny cash > 2014-06-11 13:50 |

Post removed.Why?