A word of caution though. United Plantation has reported 20 % decline in profits in the last qrt. But we all know the March qtr should be the record profits for most planters somehow this cukai makmur has come to play this year so your prosperity could also be greatly reduced the fear is that it would not just stop there !
The dismal performance of UP is due to more than $150 mil hedging loss and sold too much crop forward at about $3,800 as compared to average spot price of $6,050 for Q1 2022) . It has nothing to do with cukai Makmur at all . Without the huge hedging loss , UP would have make many folds increase in Q1 2022 profit. As such , plantation that sell their produce on spot month basis will report huge yoy increase of earnings.
Hi Thomas, It's a reporting standard to declare the amount of hedges or forward contract in QR and annual report. I don't see that in Taann. Taann does not explicitly declare the realised CPO price. Taann's associate company, Swkpltn declared the average realised CPO price (FY 2021 was $4,389) which has been in line with the spot month prices. I must note that Swkplant is managed by Taann and therefore safe to take that same policy apply. Taann's qtrly profit growth for the plantation segment is in line with the CPO trend. I come to the conclusion this way.
U need to understand....we already had move ahead since the covid run in 2020 loh!
Now u need to be little bit more defensive & plantations with CPO price up and huge cheap landbank to manage inflation plus a good hedge against RM depreciation are good bets to manage this risk & capitalise on opportunities loh!
Posted by nhbeen > 44 minutes ago | Report Abuse
stockraider: Inflation is good for banking whereas recession is not loh!
So if u invest in banking when recession strike....be prepare for about 2 years share price consolidation mah!
Yup. You are right. In recession, all sectors affected and their share price as well. If you intend to invest for long haul, it is also the time to buy into some good companies. Normally, equity market will move ahead first when economy starts recovering.
Actually, what I meant was there will be days when the price drop significantly but if the fundamentals are strong, it will rebound so be prepared psychologically for such corrections and not panic sell.
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....