I studied the details and found out 3 reasons for the difference results between the 2 companies:
1) the poor operating efficiency in plantation management resulted in low yield in jayatiasa. That is the reason tsh with 42k hectar planting is able to match the production of 69k hectar in jayatiasa.
So much for Calvin tan Holland drive promotion. Up the hill then down the hill again...
How to keep track of so many bad stocks? >>>>>>
03/01/2019 19:03
calvintaneng Some thoughts on Giant Treasure at current level
WHEN Jtiasa was Rm2. 60 Calvin told Uncle Koon to sell. Now at 50 sen is 80% discount
AND favorable factors:
1. India cut tax helps cpo competes against soy and other seed oils
2. China cut tax for palm feeds for its pigs
3. Indo and Msia increase biofuel usage give support
4. Cpo stocks expect to deplete soon
5. More cpo export to China as New Year approaching
For plywood
Tokyo Olympic needs plywood
Jtiasa landbanks
Pan Borneo will unlock the value of lands in Sarawak. In Pulau Bruit freehold land is valued at only few cents psf. Sarawak is getting oil royalties for development
All are positive long term booster for jtiasa fundamental 03/01/2019 21:39
d by (S = Qr) Philip > Feb 27, 2019 05:34 PM | Report Abuse
WHEN Jtiasa was Rm2. 60 Calvin told Uncle Koon to sell. Now at 50 sen is 80% discount ================
I remember calvin strong promotion in early 2017 ( $ 1.40 to $ 1.70)....but I tell him log and CPO production statistics ( they have to announce monthly very poor). Badly affected El Nino .............Calvin turn around and say El Nino good for them.........calvin is faith based healer.
I think none of us are well versed in all sectors... Able to acknowledge this shortcoming is the foundation to understand risk in investing.
Emotional in stock market is tantamount to commit suicide.....
If you see another company rimbunan hijau sawit from the same group of jayatiasa... Also incurred big loss....apparently.... They're not agood planter but also a bad business runner... Ignore the risk associated with cyclical business like palm oil... How come the company landed with such huge debt when dealing in palm oil businesses???
It was once promoted by KYY as the most undervalued plantation stock. Of course, he got it absolutely wrong. But he was smart to admit his mistake and escaped.
The company made a core net loss of almost RM50mil in the 1H19 due to weaker contribution from both the palm oil and timber divisions. Analyst are expecting 2H19 should to post better result but I am a bit sceptical of this given that the price of palm oil is still at an average of RM2100/tn in 3Q19. The most likely outcome would still be a loss (or a very small profit).
Based on the monthly timber report, 3Q19 result could potentially be worst than 2Q19. The total logs production in Jan and Feb 19 was only 23k cubic meter which is less than 60% of 2Q19 production output of 39.2k cubic meter. Unless you believe the company can churn out at least 16.3k cubic meter of logs in March, the 3Q19 result for the timber division would most likely be worse than the -RM7.7mil loss recorded in 2Q19.
I don't think that the palm oil industry will reverse their down cycle trend anytime soon given the general demand of the commodity is expected to go down in the future. China for example, is negotiating with US to take in more agriculture products from US which would potentially include soybean (or soybean oil). In general, Chinese consumption of oil would not actually grow that much. Any increase of soybean oil import from the US would actually means lower import for other types of oil from other countries (in particular palm oil from Indonesia and Malaysia).
Another issue is on the European demand of palm oil which is expected to go down exponentially given the proposed ban of palm oil use in food and biofuels industries in the future. They have already agreed to phase out the use of palm oil in transport fuel by 2030. Some countries like France and Norway have already started to move away from palm oil.
With this in mind you need to have a slightly long-term investment horizon when buying into oil plantation companies like Jaya Tiasa as the return to upcycle might not be in the near future.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.4x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.
FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).
MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.3x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.
Hoottt ! Dont wait until RM 1 ony chase. Buy low sell high
What to scare? We buy lower than major shareholder !
Particulars of substantial Securities Holder Name TAN SRI DATUK DIONG HIEW KING @ TIONG HIEW KING Nationality/Country of incorporation Malaysia Descriptions (Class) Ordinary Shares Details of changes No Date of change No of securities Type of Transaction Nature of Interest 1 14 Jan 2019 11,375,634 Acquired Indirect Interest Name of registered holder Pertumbuhan Abadi Asia Sdn. Bhd. Address of registered holder Menara Rimbunan Hijau, 101 Pusat Suria Permata, Level 10 (South Wing), Jalan Upper Lanang, 96000 Sibu, Sarawak Description of "Others" Type of Transaction
Circumstances by reason of which change has occurred Acquisition of 11,375,634 shares by Pertumbuhan Abadi Asia Sdn. Bhd. via Direct Business Transaction on 14 January 2019.
Just realized there is such undervalue company in Bursa. I personally think it is the best time to collect JTIASA.
1) FCPO rebound to 2129 2) Major shareholder has been accumulating a lot at high price. See from http://www.bursamalaysia.com/market/listed-companies/company-announcements/6038549 Director bought higher than the current price. Why they so confident? Did they know something we dunnoe ? 3) NTA 1.39 which is around 60% discount. Seat with huge cash and assets with little debt 4) TOP shareholder amount to total of 70.2% of ticket which makes the public floating less than 30% who knows director also hold this floating ticket ? 5) for technical side it has break the resistance of 0.55 with volume. Bolinger band open upwards, STAND above Exponential moving average of 5 & 10 days( short term bullish) Price close above smooth moving average for 20 and 60 days. ! MACD start to golden cross. Volume healthy No overbuy.
ALL IS GOOD! IF YOU MONEY TO BUY IN IS BETTER... BUY LOW SELL HIGH. THE BASIC PRINCIPLE IN INVESTING. WAIT UNTIL PEOPLE DISCOVER THIS GEM THEN IT WILL BE MORE THAN RM 1 !
Remember how Hibiscus go from 0.2 to 1.2 + Remember how Dayang go from 0.4+ to 1.6+ many more
when result is bad- started to turn around no one notice dare to buy ...
wait until all research IB start to do massive attack/ marketing then people start to chase high....
NOW JTIASA STILL A BABY GROWING TO BE A GIANT BACK IN THE ERA OF RM 3.4 ! ~
WITH BRENT AND CRUDE OIL TURN AROUND CPO WILL BE SKYROCKET SOON
DONT MISS
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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....
wahd
76 posts
Posted by wahd > 2019-02-27 17:24 | Report Abuse
Habis