Please infer upstream timber, the log producer and supplier Jtiasa prospect from downstream wood processing focus lumbar comment on its latest q result.
The logs supply issue has been temporarily resolved since early August but the costing of our products had increased significantly due to the higher logs price paid in order to secure logs supply. Although the selling price of plywood has been in increasing trend recently, we expect that it will not help much on our profit margin recovery due to the current cost structure of our inventory as well as the higher logs price...
Jtiasa involve in both Upstream, log harvest, and downstream wood processing. But, jtiasa have downsize its loss making wood processing in previous q result, and increase log production activity.
Nevertheless, Jtiasa main earning contributor is still derive from palm oil, and have been reclassified from industrial to plantation sector to better reflect its growing up CPO production and profit contribution.
We expect quarter-on-quarter improvement in FFB yield as more estates are entering into the prime mature category. We also foresee improvement in the OER with the implementation of stringent controls over the mills’ operational efficiency and FFB input quality.
As for the timber division, we will continue our efforts in obtaining the timber certification and the pursuit of sustainable forest management practices in ensuring sustainable and optimum utilization of timber resources for both the export market and downstream processing requirements.
Notwithstanding our endeavour to enhance yield and productivity from the oil palm operations, the Group’s financial performance is also dependent on the movement of CPO prices and the weather condition in the coming quarters.
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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....
bluebiznet
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Posted by bluebiznet > 2017-11-17 19:33 | Report Abuse
reclassification to plantation sector..... good move!