The muted response to good quarterly results posted by some oil palm plantation companies tell us the numbers were already factored into current market price. Expectations are high but the future remains uncertain. Will high ffb/cpo prices be sustained? Can costs be contained? Can labour shortages be resolved? I like Hsplant and have faith in its management but am now much more cautious on the sector. It is not a risk free investment.
Hsplant pays dividend twice a year. According to previous record, the dividend announced in August won't be high. One thing for sure, major shareholders keep selling...
Have to wait for the dividend pending the next qtr result announcement. Indonesia export levy & tax is top heavy for their companies to compete in the open market. Bad for Malaysia owned companies operating there. Currently the Indonesia tax is at USD 375 +200 =USD575 per tonne making Malaysian based palm a bargain vs SBO price premium of USD250 per tonne in Rotterdam. Coming peak Summer months will drive up oil prices. Coming winter months in Europe will hike up gas prices { if the Ukraine Conflict is prolong} just sharing my own thoughts
Don't expect much on dividend in Aug 2022. But dividend in Mar 2023 may be attractive. Investors must accept the fact that even the company's fundamental is good, it doesn't mean the share price will raise. Otherwise, there won't be so many losers in the market.
2021 - 17.00ct 2020 - 7.00ct 2019 - 2.50ct 2018 - 2.50ct 2017 - 11.00ct 2016 - 11.00ct 2015 - 8.00ct 2014 - 11.00ct 2013 - 10.00ct 2012 - 11.00ct Total = 91.00ct (Over a period of 10 years & 2022 is still going to receive dividends).
So, for me, investing in Hsplant for long term dividend payment basis, will very soon ensure my hsplant's holding cost is getting lesser & lesser, because I will continue to receive dividends from Hsplant. It shall become FOC for me one day.
The above is actual record from Hsplant's website.
One day, if something excellent comes out from hsplant benefiting LT shareholders, I will reap a huge financial jackpot while my Hsplant's holding cost is already lower & lower, and this is a wise investment policy I hold & advocate.
edible oil prices will continue to adjust downwards as global interest rate continue to move upwards in the next 6 months. while my prediction of 2.35 was hit today it will not stop there. see you at 1.90 next..
Calvin, do you think it is still worth holding? Better cut loss now before big loss. Dividend is not guaranteed but dip of share price is reality. High TP given by investment banks is only a trap...
Forget about the share movement of Hsplant and with Average CPO Price moving between RM4K/ton to RM6k/ton, Hsplant has become a high dividend yield/payment share to hold for your retirement.
It is so much better than putting your excess funds in Fixed Deposits & with Ringgit's deprecation rate, your investment in Hsplant is a natural hedge against all odds.
Kenanga IB, please don't simply give high TP without any concrete market analysis. And don't forget to push Hsplant price to RM 3.30 as well. Otherwise, stop giving unrealistic TP.
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....
loneranger
326 posts
Posted by loneranger > 2022-05-24 20:45 | Report Abuse
Cho Kun, wake up loh...