Change of leadership. Now they rammed up Ffb production. Ffb production was below 20,000 MT qtrly last year. This year qtrly Ffb production has gone as high as 29,700 Metric tonnes
Director buying Rsawit shares as high as 27 sen show confidence
2. Large lands over 150,000 acres book value as low as Rm3,500 per acre. With Sarawak moving up to industrialization these lands are now in high demand
3. Good results ahead Twin factors. i) high ffb price ii) Sale of 2 estates to pare down debt will show up as Rm165 millions cash Of which Rm77 millions or 3.77 sen as profit
The latest QR(3rd QR)) (7/24-9/24)showed operating losses, not only that the nine month profit also showed operating losses. Now can you as a shareholder of this company can lauwa or not?
Haha as Calvin expected, our Turnaround Plantation has shown her report card. Mabel's latest hardworking farmer, *RSAWIT Reports FY24Q3 Attributable Profit of RM32.68 Million, Up 558.1% YoY. This is the 2nd consecutive quarterly profit reported by Raya*.
*Here are the full Mabel's Beautiful Farmers report card*..
Raya RSAWIT (Rimbunan Sawit Berhad) Revenue: RM146.9 million, up 3.9% YoY. Net Profit: RM32.68 million, up 558.1% YoY. EPS: 1.6 sen.
Simone SD Guthrie Berhad (SDG) Revenue: RM5.3 billion, up 10% YoY. Net Profit: RM361 million, up 4% YoY. EPS: 27 sen.
Iona IOI Corporation (IOICorp) Revenue: RM2.54 billion, up 30.19% YoY. Net Profit: RM346.9 million, a ninefold increase YoY. EPS: 5.59 sen.
Klara Kuala Lumpur Kepong Berhad (KLK) Revenue: RM5.5 billion, up 7.6% YoY. Net Profit: RM269.87 million, down 8.8% YoY. EPS: 21.9 sen.
Una United Plantations Revenue: RM547.7 million, up 1.4% YoY. Net Profit: RM215.8 million, down 8.8% YoY. EPS: 51.84 sen.
Each farmer has shown varied performance, with some experiencing significant growth in revenue and net profit, while others have faced small declines. This reflects the diverse challenges and opportunities within the plantation sector. However, all of them are profitable and can manage them selves pretty well..
Raya has been pushing to be No 1 and she delivers by giving Mabel a 558.1% Earning YoY.
Raya trim glass figure paint a promising picture…
Earnings Growth: With an average annual earnings growth rate of 61.3%, Rimbunan Sawit Berhad is significantly outperforming the broader food industry, which has a growth rate of 21.9%. This indicates strong profitability and efficient management.
Cash RM 72.72m Equity RM 355.04m Total liabilities RM 583.95m Total assets RM 938.99m
Let's break down the key financial metrics for RSAWIT:
Debt to Equity Ratio
82.6%: This ratio indicates that RSAWIT has RM0.826 of debt for every RM1 of equity. A debt-to-equity ratio below 1 is generally considered healthy, but it varies by industry. For RSAWIT, this ratio suggests a moderate level of debt relative to equity.
Debt
RM 293.30 million: This is the total amount of debt RSAWIT has. It's important to compare this with the company's ability to generate cash flow and profits to service this debt.
Cash RM 72.72 million: This is the amount of cash RSAWIT has on hand. It's a good indicator of liquidity and the company's ability to cover short-term obligations.
Equity
RM 355.04 million: This represents the shareholders' equity in the company. It's the net value of the company after all liabilities are subtracted from total assets.
Total Liabilities
RM 583.95 million: This is the total amount of liabilities RSAWIT has. It includes both short-term and long-term obligations.
Total Assets RM 938.99 million: This is the total value of all assets owned by RSAWIT. It includes cash, receivables, inventory, property, and equipment.
Conclusion
Overall, RSAWIT's financial health appears to be moderate. The debt-to-equity ratio is within a reasonable range, and the company has a substantial amount of cash and assets.
Third quarter 2024 earnings released: EPS: RM0.016 (vs RM0.002 in 3Q 2023)
Rimbunan Sawit Berhad Third quarter 2024 results: EPS: RM0.016 (up from RM0.002 in 3Q 2023). Revenue: RM146.9m (up 3.9% from 3Q 2023). Net income: RM32.7m (up RM27.7m from 3Q 2023). Profit margin: 22% (up from 3.5% in 3Q 2023).
Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth.
Let's compare the data for Simone SD Guthrie Berhad (SDG): the World Biggest Plantation by Acreage.
Earnings Per Share (EPS) Growth: SDG's earnings have grown by an average of 19.1% per year over the past 5 years.
Share Price Growth: Over the past 5 years, SDG's share price has experienced a compound annual growth rate (CAGR) of -0.08%.
This comparison shows that while SDG has had strong earnings growth, its share price has not kept pace, similar to the situation with Raya. Now you know why Mabel add Raya into her list of Farmers.
good results because of Other income (most likely Sales of Land), gross profit only 5 mn vs Previous corresponding Qtr-2023 of 20.3 mn...... means NG ??
Thank you Calvin. Always love reading your research...
KUALA LUMPUR (Nov 25): Malaysia’s third-quarter results season has been ‘disappointing’ so far, said CIMB Securities, warning of downside risks to its earnings forecasts for stocks on the benchmark index.
More companies under coverage underperformed than outperformed expectations. Out of the 10 consumer companies that have reported 3Q results, 70% fell below expectations amid poor sales due to weak consumer sentiment and boycott activities, as well as margin compression in specific cases. In particular, exporters or companies with exposure to foreign earnings reported currency losses due to the sharp rise of the ringgit against the US dollar during the quarter. These results could pose downside risks to our KLCI earnings forecasts.
The plantation sector, however, bucked the trend thanks to strong crude palm oil prices driven by supply shortfalls, the research house added.
Meanwhile, Rimbunan Sawit is also expected to incur a loss of RM2.59mil from the disposal.
Rimbunan Sawit will be selling its 6.25% equity interest in BEO for RM2.41mil to TTSH The proposed disposal is expected to be completed by next March.
Rimbunan Sawit said the proceeds from the disposal will be used as working capital for its oil palm estates within 12 months after completion of sale.
Post-acquisition of the 13.75% stake from Subur Tiasa and Rimbunan Sawit, BEO will come under full control of Hiew King’s Rimbunan Hijau (Sarawak) Sdn Bhd which owns the remaining 86.25%.
Calvin Dear. What do you think of this news from Nepo?
The acquisition of a 13.75% stake in Borneo Edible Oils Sdn Bhd by Tan Sri Tiong Hiew King from Subur Tiasa Holdings Bhd and Rimbunan Sawit Bhd (RSawit) could be seen as a mixed development for RSawit investors. Borneo Edible Oils Sdn Bhd (BEO) is related to Rimbunan Sawit Bhd (RSawit). RSawit previously held a 6.25% equity interest in BEO, which it recently sold to Tiong Toh Siong Holdings Sdn Bhd (TTSH), a company linked to Tan Sri Tiong Hiew King. This sale is part of RSawit's strategy to exit non-core investments and focus on its core business of oil palm cultivation and processing
Positive Aspects: Strategic Focus: The sale aligns with RSawit's strategy to exit non-core investments and focus resources more effectively on its core business of oil palm estates.
Working Capital: The proceeds from the sale will be used as working capital for RSawit's oil palm estates, which could enhance operational efficiency and profitability.
Negative Aspects: Loss on Sale: RSawit is expected to incur a loss of RM2.59 million from the disposal.
Reduced Stake: The sale reduces RSawit's stake in Borneo Edible Oils, potentially limiting future gains from this investment.
Overall, while the move could strengthen RSawit's core operations, the immediate financial impact and reduced stake in Borneo Edible Oils. Should this be a concern for us?
Just like Nissan and Honda Potential Merger, Raya also make another moves to focus and strengthen RSawit's core operations, the immediate financial impact and reduced stake in Borneo Edible Oils might be a concern for some investors. Fortunately, there is no drop in Rsawit share price. It hold at 24.5 sen per share today.
I checked annual report. Many properties have not much of lease life left. I saw big ones ending in around 2060. When looking at other companies in CPO business, leases seemed longer. Here is an example: Lot 1 Blk 7,Sawai Land District Leasehold 2058 7,491 Ha Oil Palm Estate 1998 Lot 64, Sawai Land District 44,374 Provisional Leasehold 2087 1988 Lot 93 Sawai Land District Provisional Leasehold 2059 1999
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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....
calvintaneng
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