Surprisingly good result from Fima corp, subsidiary of Kfima which has recorded RM19 million profit last quarter. Kfima has to consolidate Fima Corp result and I can expect Kfima will record at least RM 21 million this quarter translate to EPS 8 sen per share for this quarter.
Annualise EPS 8 sen x 4= RM3.20
Waiting for improvement result tonite, last year same quarter only RM19 million and last quarter only RM 14.6 million.
Screaming buy now for Kfima while waiting for tonite result.
Sim, if subsidiary result is good and since it will be consolidated in the holding company's account, I think Kfima result should show further improvement in the 2nd quarter (1st quarter only RM14 million) unless there is an unexpected expenses to us.
Going forward, Kfima should see better result since CPO Price is hovering around RM2,600 vs RM2,300 last quarter.
Keep finger crossed and let's wait for tonite result.
Posted by gark > Nov 25, 2013 10:43 AM | Report Abuse someone is finally recognizing the 40k ha planted in 2008.. about time to be fuly matured in 2013 and bear good yields.. Dear Mr Gark,
Can you please share where was the above information extracted from?
Both FIMA Corp and KFIMA 2013 accounts shows a lower planted area. If indeed 40K was planted in 2008, it would be a great buy.
Seems like everybody here is jumping the gun. A good earnings by subsidiary does not guarantee a good earnings by the parent company. If the other divisions in the parent company is performing poorly, then the overall earnings will be muted.
Kfima has shown improvement in the result. The 2nd Quarter after tax this year is RM16.28 million which is higher than RM14.00 million recorded in the 1st quarter this year.
Hi Pradeep, I like the quarterly results. Manufacturing results were pretty good. And while profits are impacted by low ASP for CPO, I'm a glass half full kind of guy and there should be upside once ASP for CPO adjust to market prices (CPO prices have been getting better recently right? I'm not sure). While bulking division has lower volume, the impact on that division's profitability isn't too bad due to its high margins. I'm alright with the results all said and done
After going thru the result last night, I am pretty confident that the company can easily record 20% jump in profit for the coming 3rd quarter. Buy another 10K at 1.98
Re-iterate Outperform. Having met our estimates last year and assuming a similar trend for FY14F, KFima is deserving of a higher valuation. The group is trading at 6.7x fwd-PER despite the group encompassing 5 core business segments. KFima has recently begun garnering interest which we assume could be the changing perception of investing in a “safe” undervalued stock amidst challenging times
profit fell compared to previous years....quarter by quarter comparison..yet someone here compared between the 2nd quarter with 1st quarter...lol...itu pasal lah harga jatuh..masih ada yg tak faham rupanya
Keep on issue ESOS, director getting big fat pay, hold large pile of cash, do nothing, also never reward shareholder with bonus or higher dividend, so can only buy when it is low
Posted by wayne1982 > Nov 29, 2013 04:32 PM | Report Abuse Keep on issue ESOS, director getting big fat pay, hold large pile of cash, do nothing, also never reward shareholder with bonus or higher dividend, so can only buy when it is low
5 years ago if you have bought Kfima at about 70 sen then, you would be a very happy investor. For in the last 5 years, the management has created huge shareholder value for you as follow:
Year 2013 2012 2011 2010 2009 Total Book value growth 0.19 0.31 0.23 0.25 0.13 1.13 Dividend 0.08 0.08 0.07 0.05 0.03 0.31 Book value growth plus dividend 0.27 0.39 0.30 0.30 0.16 1.44 Owner's earnings 0.01 0.28 0.28 0.24 0.08 0.89 EPS 0.29 0.31 0.27 0.22 0.18 1.26
From the table above you can see the management has made a total of RM1.26 a share for you in that 5 years, and had increased the book value by RM1.13, and had paid you 31 sen in dividend.
And if you were one of those in the management, what would you say. Most probably you would complain that you have made so much money for shareholders but you are only getting peanut. How unfair is it to you!
Yes, the directors in total was paid only RM2.2m last year, or just 0.4% (<<3%)of the turnover of close to RM500m.
Kfima ESOS up to 26.3m (10%) shares was proposed in August 2011 for the purpose of aligning the interest of the employees of Kfima and the shareholders; ie giving the staff the option to buy the company stock at RM1.48. At that time, that exercise price was probably about 10% below the market price. Since then Kfima's price has risen to 2.00 now, plus about 20 sen of dividend payment.
So what is the cost of this option to the company? What is the value in relation to the revenue and profit made? Do you want the management to be fairly rewarded and work hard to maximize your value, or you want a management to be poorly paid and hopefully they work hard for you also and won't think of making money themselves in other ways detrimental to you well being as a shareholder?
Big pile of cash doing nothing? Don't they buy more and more land for palm oil plantation?
Never reward shareholders with bonus? What is the bonus for? How it increase shareholder value when a cake is cut half but still is one cake? No dividends? How many companies in Bursa pay a dividend yield of 4% or more?
January RM2, now also RM2? Too bad, you didn't buy it five years ago like I did, or even 2 years ago I still bought. But you also get the 8 sen dividend if you have bought in January, won't you?
Can't you see the forest instead of focusing on the tree?
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Posted by 逍遥子 > 2013-11-26 17:18 | Report Abuse
Fima Corp just posted a reasonable good 2nd Qtr results, I would expect KFima's Qtr result should be quite good as well.