Volume is the game. more planted acreage higher is your returns {FFB production } higher margins if your own mill's process internal FFB crops { instead of third parties or outside crops } Estate's with numerous Mill's will benefit more compared to single run oil mill }
November CPO spot prices trading between MYR 3,300 - MYR 3,450 per tonne { highest for the past 4 - 5 years} uptrend will continue to sustain due to La nina weather conditions in South America soy growing region. Both CPO and SBO prices are closely correlated
avr CPO up +$900 {+37%} Y-o-Y Nov 2021 spot 3,400 { as at 10/11} Nov 2020 spot 2,490 { last year } Rsawit has huge land bank acreages totalling 92,312 ha bigger than a lot of its peer
Looking at the Financials...it dosen't make sense ie I would expect as time goes the Turnover will be bigger as more acreage matures...but not this company...
It's land bank is huge { 92,312 Ha} much larger than other mid caps plantation companies. Planted acreage will increased proportionally same goes for its mature acreage. During high CPO prices its a number game { exactly the reverse during the slump in prices}
wonder of the 92k hectares...many much has been planted...Looking at the negative financials...Alot of profits much have been invested in planting...If so, at this price...well it will rocket...
from my calculation on their output record..this QR output is more than previous QR by 19%..that is why i am switching from TSH to this counter last week
Need a analyst to look into the financial details details...Interesting company...Alot of expences on aggresive planting maybe the main reason for lost....
TDM great result . I own Rsawit and TDM earlier but then took profit both and buy back Rsawit and not TDM, sad I pick the wrong horse..... hope Rsawit can improve next QR =.=
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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....
kasrim
2,493 posts
Posted by kasrim > 2020-10-16 14:27 | Report Abuse
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