A massive winter storm swept across the central and Northeast US on Thursday where it was delivering heavy snow and ice, making travel treacherous, if not impossible, knocking out power to thousands and closing schools in several states.
Who knows what kind of wild weather will be during the next edible oil crop season . If next edible oil crop harvest in the northern hemisphere is no good , CPO price will stay above $5,000 throughout 2022 until the next crop season in 2023.
Palm oils , which command about 40% share of global edible oil market , has recently achieved pricing on par and even higher than soyoil ! I think this has never happened before as I remember palm oil had always been traded at huge double digits % discount to soyoil , canola and sunflower oil.
What we see now has very positive long term impact on palm oil. Palm oil which has the biggest market share of edible oil should rightly command the pricing power like it is now .
Climate Change agenda and ESG compliance , which lead to NO new investment in oil palm cultivation since 3 years ago (and expect minimum expansion into the foreseeable future), coupled with increasing consumptions, higher usage in renewable fuel supported by high fossil fuels and strong Indonesia government mandate, palm oil prospect can only be brighter….
Amid wild weather caused by global warming, the competing edible oil crops will have great challenges to produce enough to fill any slack from palm oil .
When it comes to land use, the oil palm tree stands tall. This “golden crop” is the most efficient oil crop in the world. Sustainably grown in Malaysia, this stately tree feeds billions, brings prosperity to farmers and nurtures its environment. And it accomplishes this on just a tiny sliver of the world’s farmland. Now, that’s smart growth!
The world has four major oil seed crops: oil palm, soybean, sunflower and canola (rapeseed). Together, they use 3.55 percent of the world’s total agricultural land. Oil palm occupies the least land: just 0.23 percent of the world’s farmland. Sunflower uses 0.51 percent, rapeseed 0.67 percent and soybean, the most at 2.14 percent.
Despite using the least amount of land, oil palm provides the highest yield of oil. The bountiful fruit that grows on the oil palm tree produces 11 times more oil than soybean plants, ten times more than sunflower and seven times more than canola, per hectare per year. In other words, it takes more than ten times more land to produce the same amount of soybean oil as palm oil.
And unlike the other oil seed crops, palm oil is a perennial crop with a 25-year life cycle. Instead of having to plant and replant year after year, the tall, leafy oil palm trees produce generous supplies of fresh fruit bunches all year long. This conserves energy and reduces soil erosion. The trees also act as an effective carbon sink. When it comes to sustainable agriculture, Malaysian palm oil is simply the superior crop for its effective land utilization.
The upcoming qtr results should be a good one. If there is a dividend announcement then there would be further upside if not I think not many people want to collect at this price
Ta Ann’s 9MFY21 core earnings surged 167% YoY to RM164m, bolstered by stronger plantation earnings and higher contribution from its associate companies.
The impressive results surpassed our and the street full-year expectations, making up 86% and 90%, respectively.
A higher DPS of 20sen was declared for the quarter, bringing the YTD DPS to 30sen. Commenting on the prosperity tax, management sees muted impact if it is charged at the subsidiary level.
In view of the stronger-than-expected results, we raise our FY21-23F earnings forecast by 9%-20% after imputing in higher FFB production and margin expansion as well as higher contributions from associate companies.
Maintain Outperform call with a higher SOP-based TP of RM4.41.
TaAnn’s EPS 2021 is estimated 75 sen and PE is only 5x. Dividend Yield for FY 2021 is expected to exceed 10%. Forecast EPS 2022 is likely to be higher due to robust CPO price . Unbelievable value in this stock.
The rally hasn’t started at all. In a rally , the stock will trade at 15-20 x PE. TaAnn’s FY2021 EPS estimated 75 sen , thus giving current PE of 5.1x FY2022 forecast EPS shall be higher , thus forward PE of < 5x. If PE of 10x , share price should be $7.50 If PE of 15x, , share price should be $11.25.
Don't forget the manipulation by the IBs bcoz of their issuance of the call warrants they may want it up or down depending which suits them better there is no way it will hit RM7.50
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 3249 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....
casanwk
1,496 posts
Posted by casanwk > 2022-02-03 13:23 | Report Abuse
Price at key level
@Buy rate consistently low yet the price is creeping up