I think Japan like Jaya Tiasa plywood and timber. After the tsunami, they bought a lot from Jaya Tiasa. As we know, Japan has become the 2020 Olympic country. They need to build a lot of building and also infrastructure. They need a lot of woods. I believe JT is going to benefit on this. This is just my opinion.
If you look into Jaya Tiasa annual report last year, you will be able to see the profit that Jaya Tiasa made with the demand from Japan. You can just relate the months to months. However, it is depends on each of the investor. Everyone has their own opinion and way of invest. For me, I chose Jaya Tiasa as I am a long term investor.
This news from GuangHwa newspaper today just nice to support my comments on 1/12. Japan will need more words from Malaysia. Jaya Tiasa will be one of them who are going to benefit on this. http://www.chinapress.com.my/node/483035
Plywood export used to be one of key income or core business for Jaya Tiasa. However, they have started to turn into palm oil industry couple years back. They use the land where trees have been chopped to plant palm oil. They also know that woods / trees are going to be finish one day. They need to look for other income / business. So, in long term, I think JayaTiasa will be doing well as one of the plantation players. I bought this share is to hold for long term.
Jtiasa may also have to drop its plywood price if Indon's are cheaper. But it has it's oil palm plantation that are coming to maturity increasingly. It will make less profit in plywood but increasing profit in oil palm. So there must be some other explanation for the sudden price drop.
FFB, CPO and PK production fell 16%, 26% and 20% in Nov as compared with Oct, while logs remained stable at just over 97K cubic meter. So the most plausible reason is that FFB, CPO and PK production fell in Dec as compared to Nov. Log production may also have fallen. If so, the falls will be due to the rainy season and therefore temporary. So, I would accumulate if actual Dec figures confirms the fall and the price retreat further.
Based on data for log, plywood price from http://www.indexmundi.com/commodities/, log price still stay around US$280/cum, and plywood at US$550/cum, implying no much change in both commodity, still firmly staying at high level.
In addition, price for CPO and palm kemel have increase substantially, with palm kemel increase about 30% hike from around US$866 in Aug to latest US$1122.5 in Nov; while CPO increase about 12% from US$722 in Aug to US$810 in Nov.
Furthermore, as all commodity is price at US$. strengthening USD vs. ringgit is added more profit margin. USD has appreciated about 6% from RM3.10 to current RM3.30
By next year, Jaya Tiasa palm oil age profile will change significantly, whereby its prime age tree (>7year) will increase more than 80% from current 12% to 22.5%.
2013 vs 2014 Immature 23.5% vs 16.3% Young mature (4-7yr) 64.2% VS 61.2% Prime mature (>7yr) 12.3% VS 22.5%
Don't think the price will go down further. The output from the oil palm plantation will recover and head up. So good for the longer haul of say 3 months.
jtiasa has hefty loans. I do not think it is good on short term but maybe good for a much longer haul. however, the dividends is pittance and does not entice investors to invest in it to have their money locked up for a long period. is best to look into other stocks like coastal, p&o and perhaps ijmland.
I noticed that koon yew yin advocated a strong buy call when it was around RM2.30 and the price went up to RM2.50. However, I certainly believe an astite investor like Koon, he must have bought millions at much lower price before letting the cat out from the bag. Imagine if he bought J Tiasa at RM1.75, which I believe he did, how much money he made selling the shares at RM2.50 or even lower at RM2.40? Be that as it may, I think he is still keeping his shares. Koon can be contacted at koonyewyin@gmail.com You guys should write to him seeking clarification on this gem?
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3140 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
invester
265 posts
Posted by invester > 2013-12-01 23:31 | Report Abuse
I think Japan like Jaya Tiasa plywood and timber. After the tsunami, they bought a lot from Jaya Tiasa. As we know, Japan has become the 2020 Olympic country. They need to build a lot of building and also infrastructure. They need a lot of woods. I believe JT is going to benefit on this. This is just my opinion.