Maybank Investment Bank (Maybank IB) expects oil palm planters to report flattish-to-lower third quarter 2019 earnings as output recovery is offset by lower palm oil prices.
However, selected Sarawak-based planters such as Ta Ann Holdings Bhd and Sarawak Oil Palms Bhd are likely to report better quarter-on-quarter core earnings on stronger output, the bank-backed research firm noted in a recent report.
"Integrated players will fare relatively better, benefiting from low feedstock costs,” said Maybank IB.
Investors should look forward to earnings recovery in 2020. Valuations of small-mid caps are low on an enterprise value/planted ha basis and present an accumulation opportunity
no idea...mib's earnings projection for 2020 and 2021 is RM98M (based on RM2.3K per tonne) and RM159M (based on 2.4K per tonne) respectively. so you figure out yourself.
@5354 ,not exactly like that, you need to vew the montly crude palm oil production volume, some estates have high yield, while the other lower yield.;and also the planted acreage size of the plantations
coming Q result reflects only ,july ,august, sept, 3 months trading result; and you need to account CPO price only begun to climb sometime in August, so there is a need to infer accordingly,and the 4Q should be more spectacular.
if cpo can pass through 3000 ringgit, and stay there for very long period of time, SOP should go beyond 4.00 ringgit. but please monitor the indonesia B30 biodessel program ,mandated jan 2020, this is decisive factor which can deplete all excessive oil stock . B30 would take up about 9-10 million ton of oil , as Indonesia is a large country, and certain amount is for export market. You can refer past year record ,when cpo was 3000, sop market is 4 ringgit plus, as the annual profit could reach 200 millions a year.
- Jokowi saat membuka Kompas 100 CEO Forum di Hotel Ritz Carlton, Kuningan, Jakarta, Kamis (28/11/2019). "Artinya CPO (Crude Palm Oil) kita gunakan sendiri untuk biodiesel, biofuel. Kenapa harus tarung dengan Uni Eropa karena kita di-banned, didiskriminasi CPO kita? Kita pakai sendiri saja," kata Jokowi. Baca juga: Jokowi: RI Tak Akan Tinggal Diam atas Diskriminasi Kelapa Sawit Ia mengatakan, penyerapan CPO besar-besaran untuk dijadikan B-20, B-30 , hingga B-100 akan mendongkrak harga sawit. Dengan demikian, Jokowi mengatakan para petani sawit juga akan menikmatinya. "Akan kelihatan harga CPO 1-2 tahun kelihatan. Sekarang sampai berapa nantinya B-30 di Januari dan B-100 akan angka berapa (harganya naik). Artinya petani sawit kita akan menikmati harga yang baik," lanjut dia.
Still checking the latest figures. However in 2016, export revenue generated from the oil palm industry was RM 67.6 billion, which equals to 6.1% of total Malaysia's GDP. As a sustainable crop, the oil palm plays a critical role in helping to feed more than three billion people in over 200 countries.
Does anyone of you the latest figure?
We are doing a great job feeding more than 3 billion people in over 200 countries..
Cost cut and mechanisation lowered production cost We estimate SOP’s 9M19 all-in cost of production for its upstream ops at MYR1,665/t (-8% YoY). We understand the lower YoY cost was due to cost cutting measures undertaken and introduction of more mechanisation to counter rising wage bills. As for fertiliser, we understand SOP has applied ~90% of its full-year fertiliser requirement in 9M19 (9M18: ~85%).
By mib
Finally cost cut measure taken by sop...very positive sign
Bursa has been busy staging theme-play party this year. Technology theme and follow by Power theme and the latest one Plantation theme. Hope Plantation theme to last longer until 2020.
Indonesia is an energy imported country. To increase Biodiesel from B30 to B40 would reduce 2.5 million ton of CPO in a year. Indonesia is expected to produce more than 54 million ton CPO this year. The annual savings from imported fossil oil costs more than USD 1 billion. Indonesia is actually making a right move to stabilized CPO price.
true,sometime it works this way, sometime they go independently, the reason is they compete for the same consumers market, and both products carry over stock/inventory is high,If either one ,or both,stock /inventory are low , then all go they own way.
@up_down , please get your data accurate, indonesia production forecast to be 45million ton,not 54 million as you mentioned, B30 would take up according to estimate would be 8 to 9 million tonnes, currently program of B20 consumed 5-6 million tonnes.
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perangbrown
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Posted by perangbrown > 2019-11-21 13:35 | Report Abuse
Maybank Investment Bank (Maybank IB) expects oil palm planters to report flattish-to-lower third quarter 2019 earnings as output recovery is offset by lower palm oil prices.
However, selected Sarawak-based planters such as Ta Ann Holdings Bhd and Sarawak Oil Palms Bhd are likely to report better quarter-on-quarter core earnings on stronger output, the bank-backed research firm noted in a recent report.
"Integrated players will fare relatively better, benefiting from low feedstock costs,” said Maybank IB.
Investors should look forward to earnings recovery in 2020. Valuations of small-mid caps are low on an enterprise value/planted ha basis and present an accumulation opportunity