Jtiasa latest Qtr inventories Rm91 Millions (Previous Qtr Rm46 Millions) So Jtiasa apart from current Qtr record FFB over 340 mil tonnes it might also be selling from its stock piles as well So we can expect another 6.9 sen profit more or less
Now Jtiasa dividend policy 20% means (For last 2 qtrs projected profit 15.8 X .2 = 3.16 sen dividend more or less
Only one month more to go for Feb 2024 results and we will know exact figures
This evening we are happy to bring you 7 Reasons why Investing in Palm OIl Co shares will be profitable over a long horizon
Here you go
1) Phase One - Palm Oil Planting Involves Very High Capital Outlay
Yes, A new Palm oil entity must first buy lands. Thousands, tens of thousands or hundreds of thousands of acres of lands
And these are expensive. And getting even more expensive over time
That is why Most Palm oil Cos MUST BORROW From Banks
As such Palm Oil Cos will see high Capital Repayment at least for the 1st 4 to 5 years before there is a harvest
2) Phase Two: The Waiting Time
After buying lands Palm oil Cos will need to clear the land and do infrar like building roads and drainage
And then Seedlings must be purchased for planting
Now it will take 4 years of waiting without any real income
3) Stage Three. Needing More Cash: Rights Issue given to ask for Monies
Not only that Most Costs will be incurred as well as we see only CASH Going Out (With little or no cash Coming in)
Then with Cash Depleted Palm oil Cos might Give Out Rights Issue to ask for more money from shareholders
4) Stage Four
Finally, at Year Four FFB (Fresh Fruit Bunches) Start to appear
But still hardly enough to cover cost of Overheads, Labour, Fertilizer & to pay Bank Loans
The Balance Sheet looks poor indeed as Expenses continue to overtake Income
Some might even Give Another Rights Issue again
Many people who read AR (Annual Reports) of Palm oil Cos will be turned away
5) Stage Five: Highly Productive Stage from year 6 to year 20 : SEE STRONG CASH INFLOW
And Bank Loans Melting Away Fast
From Billions of Debt
To only Few Hundred Millions
Then to ZERO DEBT
And FINALLY!
FLOWING IN CASH!
YES!
PALM OIL IS A CASH CROP!
EVERY TWO WEEKS LORRIES MOVE INTO PALM OIL ESTATES TO COLLECT RIPENED FRUITS
And These Will Be Processed Quickly into CRUDE PALM OIL
At this stage it is called "CRUDE" but after sent to "REFINERIES" they are converted to Cooking Oil, Oil Fats, Soaps, Margerine, Toothpaste, Milk Substitutes like Creamer & thousands of other products
MORE DOWNSTREAM MEANS MORE VALUE ADD & HIGHER PROFITS
AT STAGE FOUR & STAGE FIVE SAVVY INVESTORS & SMART FUNDS MOVE IN TO TAKE HUGE POSITIONS
Examples: Dr. Neoh Soon Kean, Cold Eye aka Fong Siling, Dr. Tan Chong Koay (Pheim Fund) & EAST SPRING FUND
Teachers' Retirement Funds from USA, DBS Bank Singapore, Public Bank Malaysia
6) STAGE SIX: PALM OIL COS TURNING INTO DIVIDEND CASH COWS
Lots & lots of Dividends being Dished Out
Mr. Market Chased up the shares from Penny Stock to Blue Chip status
Eg. KL Kepong, Batu Kawan, United Plantation (But No Longer Cheap At This Stage)
We see Fong Siling took position in Innoprise Plant at Stage Five. Both Dr Neoh Soon Kean of Dynaquest & Fong Siling Took position in Jaya Tiasa at Stage Five
At Stage Six Prices Moved Up STRONGLY AS RETAIL PLAYERS & FUNDS MOVED IN (AT EUPHORIA PRICES ALREADY UP
Like Innoprise Plant Up from 50 sen to Rm1.99 (too late to chase now)
We now SEE JAYA TIASA AT STAGE FOUR GOING INTO STAGE FIVE
Still Got Time to Buy Jaya Tiasa Below 90 sen
By the Time Jaya Tiasa reaches Stage 6 it will be too late to get it cheap like now as Jaya Tiasa expected to cross Rm1.00 to Rm1.20 & then higher and higher if they give more and more dividends
For TSH it is now moving strongly from Stage Three to Stage Four and there Offers the "BEST PRICES & BARGAINS"
7. Stage Seven: When Time is Ripe: A Listed Palm Oil Co dripping with Value Will be Targets for Privatisation
Two Things Attract A "TAKEOVER"
A) HIGH FFB Production time like Ijm Plant Being Taken Over by KL Kepong
B) HIGH LAND ASSETS as in BPlant(Assets Appreciate over Time)
Ijm Plant was Rm1.86 & KLK Offerred Rm3.10 to take all
Bplant was only 57 sen in year 2021 & Now KLK again offers Rm1.55 to take over
THE CROWNING SUCCESS IS BEING OFFERED AT A HIGH PRICE AT ITS FINALITY!
For the next 3 years CPO prices are expected to rise & rise to Rm4,000 a tonne.
Mr, how? Very nervous...whole day can't sleep well
Oh boy!
If you buy shares that cause you to lose sleep you better sell them off and switch to these ones
1) JTIASA (Giant Tressure) 2) Ytl Power (Rock solid & stable) Dividend is 6.8% 3) RceCap (Also Rock Solid) Cash pay out is 25% 4) PBA (This One The MOST SOLID OF ALL) Water is recession proof
Jtiasa was Rm2.70 when CPO was Rm2,600 a ton
Now CPO already crossed Rm2.700 a ton
So Jtiasa going back to Rm2.70 is only a matter of time.
Just buy and forget!
After CPO Cross Rm4,000 a ton then you only SEE how much is Giant Treasure worth.
FFB production (MT): Dec 23 - 98,939 Nov 23 - 114,287 Oct 23 - 132,551 Total - 345,783
SEP 23 - 129,158 Aug 23 - 120,312 Jul 23 - 110,269 Total - 359,739
Inventories (RM): As at 30 Sep 23 - 91,039 As at 30 Jun 23 - 46,818
There was an dividend announcement of 1.5c on 28 Feb 23. The recent share price surge maybe due to anticipation of an higher dividend announcement at end of next month.
However, how much inventories from previous quarter and production in QR 4 were sold is still unknown until results of QR 4 is released sometime in Feb.
JAYA TIASA (4383) LATEST RESULT SHOWS A HUGE SURPRISE JUMP IN PROFIT: UP BY 100% KUDOS TO YOUR EXCELLENT HARD, WELL DONE! WELL DONE!! WORK , Calvin Tan
I bought as low as 62 sen and as high as 87 - I still believe this share is undervalued and I am tempted to buy more. Now the debt is reduced and dividends are being resumed I wouldn’t be surprised if the price ends the year at 1.60. THP is also undervalued, I bought this share around 12 years ago and received quite high dividends for a couple of years before the bonus issue. These cheap plantation stocks are becoming cash cows and are much safer than most banks,property companies and high tech shares.
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
53,365 posts
Posted by calvintaneng > 2024-01-20 17:28 | Report Abuse
Jtiasa latest Qtr inventories Rm91 Millions (Previous Qtr Rm46 Millions)
So Jtiasa apart from current Qtr record FFB over 340 mil tonnes it might also be selling from its stock piles as well
So we can expect another 6.9 sen profit more or less
Now Jtiasa dividend policy 20% means (For last 2 qtrs projected profit 15.8 X .2 = 3.16 sen dividend more or less
Only one month more to go for Feb 2024 results and we will know exact figures
https://www.bursamalaysia.com/bm/trade/trading_resources/listing_directory/company-profile?stock_code=4383