indo export curbs will benefit malaysia palm oil players as there is not enough supply to fill that shortfall ... palm oil and soybean prices will shoot even higher after this... SWKPLNT is still cheap..
CPO price still intact, so as plantation stock! a healthy correction after a price surged in d morning! actually, investors took profits reflecting d temporary ban of palm oil export in Indonesia! even plantation companies with no exposure in Indonesia took a beating due to this announcement! chance for those investors who wishes to buy at lower price !
KUALA LUMPUR (April 25): Plantation stocks on the local bourse dominated the top gainer list on Monday morning (April 25) as Indonesia’s move to ban palm oil exports is seen to benefit Malaysian planters.
Analysts said on Monday that Malaysian crude palm oil (CPO) producers are potential winners amid Indonesia's palm oil export ban.
CGS-CIMB analyst Ng Lee Fang expects CPO prices in Malaysia to rise significantly and potentially surge to new record highs due to panic buying by consumers if the temporary ban lasts more than four weeks.
Posted by Johnzhang > 49 minutes ago | Report Abuse
The reason why capital gain over 2 years and 1 year period from investing in UP, IOI, Simeplant and even KLK is so much lower than the small and midsize plantations is now very obvious!
I shall remain focus on the small and midsize plantations like SOP, Taann, Bplant, HSplant, cepat, MHC, swkplant, Thplant. These plantations will reap the highest return from the high and increasing CPO trend.
Sarawak Plantation Berhad - Expecting a Strong Catch-up Date: 2022-05-23 Firm: PUBLIC BANK Stock: SWKPLNT Price Target: 3.59 Price Call: BUY Last Price: 2.75 Upside/Downside: +0.84 (30.55%) Sarawak Plantation saw its 1QFY22 core earnings doubling to RM26.1m, bolstered by stronger CPO prices despite weaker FFB production. Despite the strong results, it made up only 18% of our full-year expectation but in line with market expectation at 27%. The weaker-than-expected results were mainly attributed to a shortfall in FFB production. Nevertheless, we make no changes to our numbers as we expect to see a strong catch-up in the subsequent quarters, led by a strong pick-up in FFB production and higher CPO prices. A first interim dividend of 5sen was declared for the quarter. Maintain our Outperform call with an unchanged TP of RM3.59 based on 13x FY23 EPS.
1QFY22 revenue (QoQ: -24.5%, YoY: +26.4%). Lifted by stronger CPO prices, the Group’s plantation sales rose 26.4% YoY to RM184m. During the quarter, FFB production slipped 10% YoY to 62,061mt. Meanwhile, 1QFY22 average realised CPO price rallied from RM3,819/mt to RM5,938/mt, while average realized palm kernel price advanced from RM2,375/mt to RM4,375/mt. First quarter FFB yield slipped from 3.31mt/ha to 3.12mt/ha while oil extraction rate rose from 19.38% to 19.93%. 1QFY22 core earnings jumped to RM26m (QoQ: -41%, YoY: +123%). Excluding the change in fair value of biological assets amounting to RM17.6m, the Group’s core earnings surged 123% YoY to RM26.1m, bolstered by stronger plantation margin. 1QFY22 all-in CPO production cost averaged at RM3,200/mt vs 1QFY21’s RM2,200/mt, dragged by lower CPO production, higher fertilizer cost and higher amortization coming from the enhancement area starting this year. Outlook guidance. Although 1QFY22 production came in below expectations, management maintains its FFB production growth of 10%. The weaker-than-expected production level was due to i), favourable weather condition, ii) worker shortage and iii) bio-stress in oil palm trees. On the positive side, production has been picking up since March. Harvesting period has been around 1.8 rounds per month or once in every 14 days. During the quarter, enhancement area totaled 1,028ha with only 57ha normalizing. 100ha were replanted and it is planning to replant about 1,500ha in FY22. New mature is expected to increase by 1,500ha with total harvestable area standing at 20k ha. Meanwhile, management expects to see an increase in production cost as fertilizer cost has jumped more than 70% YoY. There was no forward sales for CPO as there is a wide gap between the spot and available forward prices in the market. On the foreign worker shortage issue, the Group is currently experiencing harvester shortage of up to 150 people and it is in the process of submitting application for recruitments from Indonesia. It is worth noting that the hiring is subject to quota by reference to estate hectarage. Meanwhile, fertiliser application was behind schedule as it only completed 50% of the 1Q programme. Lastly, our sensitivity analysis suggests that a RM100/mt increase in CPO price would translate into an additional PBT of RM8m. Source: PublicInvest Research - 23 May 2022
cheap now. urusharta jemaah sold down to 5% from 18% a few months ago. sold around 36m shares on this stock that has 400k+ average turnover. probably accounts for more than 50% of turnover over the last 6-8 months
Very True loh! General Raider use to be poor loh! I was a despatched boy just earning Rm 180 per mth loh!
Thru hardword & abit of intelligent to capitalize on opportunity thru business and invest my savings diligently & prudently....Raider manage accumulate a good amount of wealth sufficiently thru investment and today if raider retire....should be able retire comfortably loh!
Yes no one should be poor loh!
If they are hardworking & look out for opportunity & manage their savings prudently loh!
Posted by chowwei > 1 day ago | Report Abuse
If You Born Poor It's Not Your Mistake, But If You Die Poor It's Your Mistake, ---> Bill Gates <---
Swkplant has become another good dividend paying share to hold for your retirement and now with its share price of RM2.00 (from high of RM3.38), I don't want to ask why & why especially when Average CPO Price is moving between RM4.0K/ton to RM6.0K/ton.
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....