This may also explain why CPO is holding well above $5,000 pmt and shall stay elevated into 2022. CPO for food as well as for fuel (biodiesel) , seem to be the beneficiary of food and energy crisis until energy cost come down significantly. Will energy cost fall significantly soon ? Amid climate change target to meet , investors activism against global oil &gas companies operations, financing limitation by banks and lack of investment , energy supply and price will not ease anytime soon.
KUALA LUMPUR (Nov 8): Foreign buying of Malaysian equities extended for the fifth week and jumped to RM67.94 million last week from RM1.44 million the prior week.
In its weekly fund flow report on Monday (Nov 8), the MIDF Research team said as the market reopened last Monday, local institutions and retailers were net sellers and net buyers respectively, amounting to RM329.7 million and RM314.3 million.
“Meanwhile, foreign investors were net buyers to the tune of RM14.97 million despite sentiment turning negative following the announcement of the one-off “Cukai Makmur”
It seem to me that foreign investors have better understanding to what extent Cukai markmur impact corporate profitability than the local institutions. The local analysts from various IBs painted so much negativity and with exaggeration . They are the real problems to our capital market.
Cepat beli lor. I have warned of foreign fund selling before but this is too cheap to ignore moreover got reasonable dividend it is still one of the best stocks to invest
@treasurehunt, pls don’t confuse yourself. Windfall tax rate of 1.5% for East Malaysia and the new rate of 3% is levied on FFB production basis . If you want to convert the calculation to CPO basis , both the tax rate and the production volume has to be converted to CPO basis.(350,000mt FFB =70,000 mt CPO ) The comparison between the old and new rates are correct per imy post on 1/11/21.
I see your point . The FFB production figures of 350,000 mt initially assumed was wrong . Based on FY 2020 FFB production of 710,000 mt and average CPO price of $4,500 , the revised calculations are : Full year Windfall tax at existing rate : 1.5% x 710,000x (4,500-3,000) = $15,975,000 Full yearn Windfall tax at new rate : 3% x 710,000 x (4,500 - 3500) =$21,300,000 The difference is $5,325,000 .
Can you share your calculations how you arrived at $10.65 mil?
But you are not exactly comparing the windfall tax sum between the old and the new system which involves both higher rate and higher threshold price . The positive impact of the threshold price increase from $3,000 to $3,500 is not being considered by you .
Additional 1.5% levy in FFB to Sarawak planters are ,in fact, won't have any impact to its bottom line. If the CPO prices stay at 4500/mt in 2022, TAAn generate huge cash inflow to pay off its debt. The interests costs savings will be more than the 1.5% levy.
You are right. The incremental levy of 1.5% is merely 5,325,000.
Posted by Johnzhang > Nov 8, 2021 12:18 PM | Report Abuse
I see your point . The FFB production figures of 350,000 mt initially assumed was wrong . Based on FY 2020 FFB production of 710,000 mt and average CPO price of $4,500 , the revised calculations are : Full year Windfall tax at existing rate : 1.5% x 710,000x (4,500-3,000) = $15,975,000 Full yearn Windfall tax at new rate : 3% x 710,000 x (4,500 - 3500) =$21,300,000 The difference is $5,325,000 .
Can you share your calculations how you arrived at $10.65 mil?
Thanks to both treasurehunt and Johnzhang for the good write up. Saya sudah masuk at average price of 3.11 hopefully there will be an dividend annoucement this month but PBT will be a new record this Qtr.
Frankly what stocks can you invest in Bursa other than plantations and some tech stocks I would think plantations is still the best bet. You only need to look at 6 to 12 months time frame is good enough d no need to look at very long term nobody will tell what is the long term really hold just look at the gloves stocks you will understand. For the next 3 to 12 months plantation counters will make super profit only the taxes give some minor hiccups
Still holding. Fantastic earning should result in higher share price. This month end the financial result will be out. Also, I think most probably will declare high dividend.
Plantations - CPO Price Rally Marred by ESG Concerns Author: PublicInvest | Publish date: Mon, 8 Nov 2021, 10:20 AM
Despite sustained rally in CPO prices over the last one year, there was little cheer for the Malaysian plantation counters as only four counters under our coverage (FGV, Sarawak Plantation, TSH and Ta Ann) delivered moderate gains YTD. CPO prices have touched an all-time high of RM5,363/mt and saw a YTD gain of more than 42% while KLCI Plantation Index slipped 3.8%. We believe the key reason for the lacklustre share price performance is likely attributed to the steep ESG discount attached to the plantation valuation. Meanwhile, we have raised our 2021-2022 CPO price targets to RM4,000 and RM3,500/mt respectively. We have also streamlined our valuations to factor in the rising ESG concerns. Maintain Neutral call on the sector.
Three key ESG issues that have been plaguing the industry. Despite all the efforts adopted by plantation companies, we notice environmental groups continue to attack the sector on three key areas. i.e. deforestation (environmental), fire and haze (environmental) and labour (social). On the positive note, we have seen continuous efforts taken by the plantation companies to improve on the traceability of palm oil supply, labour welfare and adoption of monitoring system to safeguard the plantation estates. Easing concerns for foreign worker shortage. Most plantation companies have been suffering from acute harvester shortage over the last two years due to the closure of international borders during the pandemic period. On a positive note, the Ministry of Plantation Industries and Commodities has recently approved 32,000 foreign plantation workers, who have completed their Covid-19 vaccination to be brought into Malaysia in stages starting mid-Oct. We think the impact of the additional 32,000 foreign workers on the palm oil industry will be felt sometime at the end of the 1Q 2022, potentially resulting in better crop recovery, harvesting cycle and CPO yield. Revising up CPO price targets to RM3,500-4,000/mt. In view of the stronger-than-expected CPO price performance for the first 10 months, we revise up our 2021 CPO price forecast from RM3,200/mt to RM4,000/mt. For 2022, we raise our CPO price forecast from RM2,700/mt to RM3,500/mt. We think the current CPO price momentum would sustainable until first quarter of 2022. Thereafter, CPO prices should ease as we expect production to increase given the reprieve seen on the issue with foreign worker shortage in Malaysia. Source: PublicInvest Research - 8 Nov 2021
@Bisfuneng you want ESG you want SOP and you also want cukai mskmur the cost of doing business is going to increaae and you also want winfall tax but predict the price will be 2700 to 3500 better don't do business here lor
Other members also buying valuable stocks but not behave like this iddiot spammer
We all feel ridiculous nonstop posting nonstop promoting
As I said earlier, if you so confidence to wait and if you so confidence what you invest why everyday need to promote, why everyday put up so many blog, why everyday go different stocks forum keep on promoting your palm oil stocks?
This is very obvious you want to cash out your share bought and treat other members as waterfish.
In the real world, no free lunch to people unless you want to take advantage from others
I don't know why 3iii administrator didn't take any action to suspend this iddiot account to avoid further keep on spamming everyday and every way
I pegging administrator need to take proper action against this spammer
This time around I think calvinteng is right. Going forward there will be serious shortage of foodstuff worldwide edible oil included and there is no way palm oil is going to fall back to below 3000 level. I don't care if anyone is promoting any counter but just using your business sense you can tell oil palm now is a precious conmodity !
@Intrinsic99, No need to have suspicious mind and over react .For whatever we post ,viewers will use their intelligence to judge whether they are valid or bullshit . Just sell and stay out if you think owning this stock is a mistake.
Gomen is killing off potential investors with these taxes and is truly unfair to planters in East Msia.WIth price of crude oil rising the gomen shouln't raise revenue this way . In reality not only plantations are affected the whole market is affected only speculative stocks go up looks like satu keluarga making investors keluar. Having said that what options do you have other than looking for returns better than what the banks give you and Taan would deliver a decent yield
Don't be silly to mislead the members here, you don't know why government asking citizens to buy more food to keep as storage because of strong winter season, not because of high demand of palm oil
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....
titan3322
2,670 posts
Posted by titan3322 > 2021-11-03 11:09 | Report Abuse
Mau tanya sikit itu cukai makmur sudah confirmed ka atau on budget stage only kalau confirmed foreign fund will sell msia stocks lor