The current COP in Sarawak is estimated at RM1,920 per tonne for a plantation with an average yield of 20 tonnes of FFB per ha per year or four tonnes of CPO per ha per year.
Boon also said that Sarawak oil palm planters’ COP was higher than Sabah due to poorer productivity per unit area although sales tax being lower (5%) in Sarawak when CPO price exceeded RM1,500 per tonne and 2.5% when the price was between RM1,000 and RM1,500 per tonne.
Im just wondering if CPO price is above a certain threshold, do they need to pay windfall tax to the government? It used to be this way not sure if the ruling still persists today. If yes, then the earnings by the JTiasa could be affected. Anyone can shed a light on this?
Govt suspended windfall tax until netx year mah...!!
Posted by FlyingElephant > Nov 5, 2020 3:27 PM | Report Abuse
Im just wondering if CPO price is above a certain threshold, do they need to pay windfall tax to the government? It used to be this way not sure if the ruling still persists today. If yes, then the earnings by the JTiasa could be affected. Anyone can shed a light on this?
The health care sectors earning each second pocketing tonnes of millions never afraid of windfall tax meanwhile sawit retailers just sold off their Kancil pending for brand new X 50 landing from the sky. Goverment suddenly declare windfall tax, what ll happen during this covid 19 when ur profit gone away b4 putting into ur pocket? Us CBP still banning our taiko FGV. D u think government esp Johor state needing their FGV retailers votes coming G-15?
Wakakakaka
FlyingElephant Im just wondering if CPO price is above a certain threshold, do they need to pay windfall tax to the government? It used to be this way not sure if the ruling still persists today. If yes, then the earnings by the JTiasa could be affected. Anyone can shed a light on this?
Last minute bought 77.5 cent bcs palm oil price momentum and volume are present. If can't earn money you guys can blame calvintaneng here but take your own risk.
Prevailing CPO Price as of yesterday is RM 3354. Cost of producing is between RM 1500-1800. This will be good for our farmers. So we expect more movements in this counter due to feel good effect on the latest Indian Oil Palm Contract, Bullish FCPO (Jan FCOP has already breaches RM 3,144), current CPO prices plus the feel good effect of 2021 Budget which will be tabled tomorrow.
Mikecyc , Just look at their cash flow statement of FY2020
Operating Cash Flow after paying interest:181mm capex: -13mm Financing: -143mm Nett: still got 25mm (thought 2019 is a bad year)
I think most plantation company are in huge debt as its a milk cow for 15-18 years. Their cash flow will be able to cover in long term. If Jtiasa is net cash company, the share price would be multiple now....
That’s why I like Jaya Tiasa (4383) Current price RM0.765 Target price RM1.55 Jtiasa is a sarawak palm oil and timber company controlled by Tan Sir Tiong Hiew King. It owns 69,589 hectares (171,958acres) fully matured palm oil plantations in Sarawak. In the financial year of 2016, Jaya Tiasa made a profit of RM82millions or 5.6 earning per share. In the same year the highest share price of Jtiasa was RM1.79. The cpo average selling price of the year is RM2,770 or average ffb selling price of RM543. Plywood prices of the same year stand above USD500+ per sheet. In the financial year 2020, Jaya Tiasa made a loss of RM129millios or loss per share of 7.45cents. In the same year the highest share price was RM1.12. The cpo average selling price is RM2,177 or average ffb selling price of RM420. If we read the last quarter result of Jtiasa, it made a loss of RM36millions, but in fact excluded the one time impairment of timber session, it actually made a profit of RM62millions in just one quarter! Besides that, Jtiasa achieved net cash flow of RM181millions and debt reduced by RM160millions in the same year. In the latest Jtiasa annual report, we also found that Dynaquest’s super investor Mr Neoh Soon Kean emerged as top thirty shareholder of Jtiasa holding 2,373,000 shares while another super investor Mr Kong Goon Khing emerged as top thirty shareholder who held 16,000,000 shares. (Mr Kong is also the 4th largest shareholder of another palm oil company - TDM Berhad.) Jtiasa is recovering drastically in 2020 after making a few years of losses. The recovery is due to plywood price recovering to above USD519 per sheet in Oct 2020 and CPO price recovering to over RM3,300 as at 6th Nov 2020. Without considering the impairment, the actual profit of Jtiasa in year 2020 should be above RM120millions. The management is very smart to use a financial method to save at least RM30millions tax expense for Jtiasa in 2020! In a nutshell, we are expecting Jtiasa to make a net profit of RM150millions in financial year 2021or forward PE of just 5.06times. So we fix a target price of RM1.55 or target PE of 10times for the financial year of 2021. We are expecting Sarawak state election in 2021 and Jtiasa could lead Sarawak themes play, while a favourable pricing of CPO in next few months due to supply reduction and also higher selling price of plywood due to the US election. (Citizens bought plywood to seal their shop in case of riot due to public unhappiness towards the presidential poll result.)
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....
calvintaneng
57,207 posts
Posted by calvintaneng > 2020-11-04 23:55 | Report Abuse
Jtiasa Tiasa = Giant Treasure
Only those equiped with true vision can SEE