U see why plantation is the best safe value investment leh ?!
Why leh ??
1. It is traded at attractive price with big discount & margin of safety mah!
2. Plantation land are good hedge of inflation loh!
3. Plantation generate good steady cash flow & earned big forex for the country mah!
4. Plantation give food to the people, thus is a very essential economic sector loh!
5. Plantation are not affected by the risk of very fast technology changes that will make the industry obsolete and disrupt the prospect...This plantaion industry & predictable mah!
6. If u believe long term sustainable cash generating business go for plantation loh!
2. scenery Con liar stockraider aka whistlebower99 aka thehoff spamming all penny stocks here n in FB GorengGroupFB. He non stop since early 2021 days n nights, working very hard for syndicates to collect at low n causes all penny stock lost above 5,000% - 10,000%
WTK has 12k hectares of plantation. Their palm oil mill is also quite efficient with an OER of 21.7% - 22.5% and PKER of 5.1%. Plus they have a net cash backing of 25sen/share. So essentially you are paying 28sen for WTK at today's prices.
Big brother JTiasa announced decent results for the quarter with plantations division the main contributor with timber/plywood almost breaking even. Now awaiting WTK's results. If it mirrors JTiasa, it can make enough in 4Q2021 to become profitable for the year. The key is in turning round timber/plywood since the other divisions are profitable.
WTK has very little exposure in oil palm. Better switch out to many other plantation counters which are still very cheap like Bplant, MHC, Cepat, Taann, SOP, swkplant, Hsplant. MKH , a housing developer has much bigger exposure in oil palm with about 17,000 ha very high yielding mature oil palm in kalimatan. Very significant contribution from oil palm segment while housing segment is improving.
WTK was late diversifying into oil palm, unlike JTiasa, as it was troubled by internal shareholder squabbles. But 12k hectares of mainly young trees ain't bad and cushions weak timber/plywood performance. As does its increasing cash hoard RM386m since operations are cash flow positive. Gives ammunition to buy more plantation land when available. Nice touch to increase dividend to 1.5% but investors need more patience to reap good harvest.
Wtk has un polished gems the forest harvest its due to collect. When trees fall turn into logs sales waiting for this. Plywood Japan n Taiwan. Logs sale india
Does anyone know what has happened to the 4700 hectares oil palm plantation purchased from Rimbunan 2 years ago. It seems that the FFB production does not increase after the purchase. Does it mean that the trees are still immature (less than 3 years old)?
Youngkid, you may not be aware that WTK is still very small in palm oil revenue. I wonder if you are switching to WTK is for its palm oil business? Pls read the financial report to get a clear picture.
Posted by Youngkid > 10 minutes ago | Report Abuse
Today only I confirmed going up for WTK , I sold Jtiasa n TSH just now to sapu WTK
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Diamond7
2,394 posts
Posted by Diamond7 > 2021-12-29 20:41 | Report Abuse
CPO above 5000
No need to worry...
Just buy!!!