Don't forget to include the shortage of sunflower oil (interrupted due to the Ukraine war) into the palm oil equation. Also to factor in the impact of the affected supply of fertilizers from Russia onto the cost and yield on oilseed crops.
BTW, based on the latest MHC's annual report, the following info are the positive :-
1. The management affirms that CPO price will remain at good price level for 2022. 2. Earning from power plant will likely increase as compare to last year ( equipment breakdown and MCO restrictions in 2021) 3. MHC uses organic fertilizers to reduce input cost. 4. Cash on hand + Investment is higher than the debt. Positive cash position. 5. Optimize replanting to achieve higher production. 6. In good compliance with ESG requirements.
This is a well managed company. Make your own investment judgement.
mhc ,.....up like snail,......down like falling rock,......better play commodity than buying plantation stocks,.....plantation company like all poor farmer,.......they don`t make much money,.....only the middle man profiting their hard work,......
At the moment plantation stock are price modestly using sustainable cpo price of Rm 4000 mah!
With the current price above Rm 6000, even if indonesia comeback to the export mkt....that will not affect plantation share price bcos it is not overvalue....as it is not value base on cpo rm 6000 mah!
That means q1 2022 v q1 2021 mah! In short u cannot compare winter season v summer season mah! U cannot compare q1 2022 with q4 2021 loh!
Bcos got seasonal production issue mah! Posted by Jonathan Keung > 2 minutes ago | Report Abuse
That ku ku brain simply shout . ...blah blah. Cepatwawasan profit -36% QtoQ.... Actual profit triple up in 1st Qtr from 5.6 million to 15.2 million. BPlant earnings & profit will be higher similarly 3+ times and higher in coming QtoQ announcement
First quarter EPS of 5.84 cents for a stock price of RM1.20, this translates to a yield of 4.87%. How many stocks in KLSE with this kind of yield?. This is only for one quarter. With higher production figures in 2nd quarter and the good average CPO (easily above Rm6500) in April and May, what will be the estimated EPS in 2nd quarter? Based on these considerations, what will then be the qoq or yoy results comparison for 2nd quarter?
Good 2nd results. Cumulative EPS up to 2nd quarter is 14.1 cents. With remaining 2 quarters with higher production numbers ;may be at a lower CPO price, will the 2022's EPS surpass 2021's EPS?
2 quarters EPS of 14.1 cents for a share price of 92 cents, is this stock undervalue?
Sekarang kedekut, sikit hari nanti, dividend akan jadi bagus. What counts is that the company is well-run and has a solid track records and strong financial position.
If CPO price will remain firm in the second half of 2022 as mentioned in the recent quarterly report, 2022's EPS will likely to surpass 2021's EPS.
Will CPO price stay above RM4,000 throughout 2023? There could be a correlation between crude oil price and palm oil price. If Opec+ maintains a production level that keeps Crude oil price around USD 80 per barrel, there is a possibility that palm oil price will remain above RM 4000. Additionally, with high crude oil price Indonesia will increase the production of Biodiesel. The earning outlook for palm oil sector will likely remain positive going forward. Please make your own judgement when investing.
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MHC has Book Value of RM 1.37 per share. I estimated its EPV to be RM 0.80 per share based on its past decade of EPS and a 10% discount rate.
Based on Professor Bruce Greenwald Asset Value (AV) vs Earnings Power Value (EPV) analysis, this is a company with under-utilized assets. The under-utilization is worst if you assume that its Revised Book Value would be about double the Book Value. This was based on Boustead Plantation case where a recent valuation showed that the Revised Asset Value is about double the assets in the Book.
Greenwald actually used an updated basis to determine the AV. Accordingly we should be comparing the Revised BV of about RM 2.74 with the EPV of RM 0.80.
Unfortunately, the market doesn’t really look at Book Value but focus on earnings. Book Value comes into play only if there is some takeover or asset sale.
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....
s3phiroth
364 posts
Posted by s3phiroth > 2022-04-26 10:12 | Report Abuse
go google yourself.