However, WTK Holdings Bhd, the other timber giant, registered an increase in log production to 256,303 cu m in the first six months of this year from 197,190 cu m in the first half of 2015.
Last year, the company said its log-harvesting activities had slowed because of the state government’s move to curb illegal logging activities and enhance its forest-management procedures.
These actions resulted in administrative backlogs for adjusting to the new procedures.
While WTK’s timber revenue improved to RM288.5mil from RM261.8mil during the six-month period under review, the segment’s pre-tax profit was down to RM13.6mil from RM16.1mil.
Sarawak’s overall annual log production has been on a downtrend, dropping to below nine million cu m a year from 19 million cu m at the peak in the early 1990s. To achieve sustainable forest management, the state has limited the harvest of timber from six million ha of permanent forest estate to around nine million cu meter a year.
The state authorities two years ago mounted a massive clampdown on illegal logging activities, resulting in the seizure of a large number of illegally harvested timber worth millions of ringgit.
A senior executive of a Sibu-based timber company told StarBiz that as log production would continue to fall, timber companies had to rely on more raw materials from planted forest to support their downstream processing industries.
$$ ∆∆ Its NTA alone is RM2.90 ∆∆ In net cash position ∆∆ The appreciating USD will benefit its export oriented businesses. ∆∆ More of its oil palm plantations are maturing ∆∆ Rightfully it should be able to churn out higher profits in the coming quarters
This one very funny...suddenly last minute buyers wallop 50,000+ @ 1.09 & then Q to buy 40,000+ at the same price. Anyway I added to my original 1.11 position in May at 1.08 this afternoon :D
Yeah, this kind of movements cannot be described ie. who is buying and who is selling. I think they are the kind of movements by those 'market makers'. Those queues you see everyday where nobody is really selling/buying at that huge amount are created by them I guess.
This stock needs some patient. FFB harvest expect to exceed 60k tons in 2016 compared to 40k tons in 2015. Which translates to an earning of 1 cent per share from plantation compared to a loss of 3 cents per share in the previous year. So can expect EPS at least 4 cents better considering improvement in the plantation sector alone.
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....
paperplane2016
21,685 posts
Posted by paperplane2016 > 2016-09-15 18:02 | Report Abuse
wait slow slow, never mind. Coming Q if log production still so good, BUY