Posted by KC Loh > 2013-01-10 17:05 | Report Abuse

palm oil holdings reached record high.

http://biz.thestar.com.my/news/story.asp?file=/2013/1/10/business/20130110134220&sec=business

but should be tracing back coz i believe nov-jun will be seasonally low production!

Posted by KC Loh > 2013-01-10 17:05 | Report Abuse

thanks passerby for the link

Posted by passerby > 2013-01-10 17:31 | Report Abuse

you are welcome if the link can do any help to you. i heard last time some where at PJ Jalan 222 there got a lot of superbikes, not sure still got nowadays

Posted by KC Loh > 2013-03-05 13:45 | Report Abuse

i have a lot of respect for HLG analysis, but today is just too funny, hahahahahahaha.......

The recent intrusion by Filipino militants into the east coast of Sabah has prompted us to look closer to plantation companies’ exposure in Sabah, as the state accounts for 28.4% of Malaysia’s total oil palm planted area.
Source : http://klse.i3investor.com/servlets/ptres/14410.jsp

Posted by Jonathan Keung > 2013-03-05 13:59 | Report Abuse

as long the stand off is NOT prolong. the impact will be minimal. Felda Refinery and their Oil Mill ( FElda sahabat) is close to the village. Others like KLK, LDEO, Kwantas operating around Lahad Datu area will also be affected.(e.g. intake slow down etc )

Posted by kglin > 2013-03-05 22:00 | Report Abuse

Time to collect at low. With its venture to palm oil estate and unique technology in milling. Great potential to go higher after this consolidation.

Posted by kcchongnz > 2013-03-27 16:35 | Report Abuse

How come nobody talk about this stock anymore? Must be there is no liquidity.

CBIP’s revenue and earnings grew steadily in the last 6 years. Revenue of continuous operations grew at a compounded annual growth rate (CAGR) of 15%, from 229m in 2006 to 520m last year. Earnings before interest and tax (EBIT) grew in tandem from 35.8m in 2006 to 88.9m last year. Net income grew even at a faster rate of CAGR of 20% as shown in Table 1 below.

Table 1: Growth in revenue and earnings for CBIP
Year 2012 2011 2010 2009 2008 2007 2006 CAGR
Revenue 520351 322611 270893 331468 409903 289819 228811 15%
EBIT 88878 49910 40363 60422 68146 50462 35829 16%
Net Income 91775 69515 50237 42304 62933 46710 31474 20%

The table 2 below shows the cash flow from the ordinary business of CBIP in design and manufacturing of a wide range of palm oil mill processing equipment and related spare parts; undertaking of palm oil mill engineering and turnkey projects and fabrication; and manufacturing of transportation and construction equipment, concrete moulds and general engineering fabrication.

Table 2: Cash Flow of CBIP from 2006-2012
Year 2012 2011 2010 2009 2008 2007 2006
CFFO 38578 68236 66775 64907 45858 7277 52299
Capex 0 -9497 -40001 -17596 -32355 -220 -12238
FCFF 38578 58739 26774 47311 13503 7057 40061
FCFF/Revenue 7% 18% 10% 14% 3% 2% 18%
CFFO/NI 42% 98% 133% 153% 73% 16% 166%

CBIP produces consistent cash flow from operations for the last 7 years, with an average of 50m. After spending an average of 16m in capital expenses each year, the free cash flow for the firm (FCFF) produced is about 34m a year. This FCFF is about 10% of its average revenue for the last 7 years, very good indeed. For the more recent 4 years , average FCFF is 43m.

This consistent growth in earnings and FCF has also improved the balance sheet of CBIP for the last 6 years as shown the Table 3 below:

Table 3: Financial health of CBIP
Year 2012 2011 2010 2009 2008 2007 2006 CAGR
Total common equity, E 497898 380949 288135 248417 217941 177053 142323 31%
Net cash 173501 36723 -101742 -116977 -149697 -16936 -3607

See how the equity grew by a whopping CAGR of 31%! This earnings and FCF also translate CBIP from a net debt of 150m in 2008 to net cash of 173.5m in 2012.

So with such a sterling financial performance of CBIP for the past few years, what is the intrinsic value of CBIP and what is the margin in investing in CBIP?

Posted by sean > 2013-03-28 23:14 | Report Abuse

Y the stock price can't move?? volume is less

Posted by kcchongnz > 2013-03-29 03:40 | Report Abuse

sean,if are absolutely right. But then we are talking about investing in a company's business here. We are not talking about trading here, are we? What does history says when one invests in CBIP. The following table shows its long and short term return fro the last 5 years:

CBIP 2.51 29/03/2013
Period 2-week 6-month 1 year 2-year 3 year 4 year 5 year
Price 2.85 3.01 2.53 1.95 1.40 1.00 2.00
Return of stock -11.9% -16.6% -0.8% 28.7% 79.3% 151.0% 25.5%
CAR -96% -30.5% -0.8% 13.5% 21.5% 25.9% 4.6%
CAR means compounded annual return.

Not too bad lah, isn't it? For example if you bought CBIP 4 years ago at the adjusted price of 1.00, you would have a total return of 151% now, or a CAR of 25.9%, doubled that of the return of the market. However if you have bought CBIP 5 years ago at 2.00, you make a total return of just 25.5%, or a CAR of just 4.6%; not good but still better than FD.

It shows that for a fundamental good stocks, you won't go to Holland. But if can buy its stock at a significant discount to its intrinsic value, you can make a very good long-term return. Liquidity has nothing to do with that.

Posted by gark > 2013-03-29 16:51 | Report Abuse

Aiyah queue not match. Run away already....

Posted by necro > 2013-03-29 17:16 | Report Abuse

Gark q buy or sell?

Posted by gark > 2013-03-29 17:30 | Report Abuse

Queue buy to increade holdings but didnt get. Next time....

Posted by necro > 2013-03-29 17:33 | Report Abuse

Superb counter ROE wow...but price dont show the value...
May i noe wat is your q buy price?

Posted by gark > 2013-03-29 17:44 | Report Abuse

I queue at 2.50 this morning, then never see until closing...

Posted by necro > 2013-03-29 18:00 | Report Abuse

Oo...intresting...will u q at same price?

Posted by gark > 2013-03-29 18:09 | Report Abuse

Probably will on monday. Never rush investment.

Posted by necro > 2013-03-29 18:11 | Report Abuse

May i noe what make u like dis stock?
=)

Posted by gark > 2013-03-29 18:24 | Report Abuse

Low pe, good dy, high roe. Net cash holding, good bussness margin and 37k ha of empty land in kalimantan wait to be planted.

Posted by necro > 2013-03-29 18:46 | Report Abuse

Hey gark got fb?

Posted by gark > 2013-03-29 18:57 | Report Abuse

Dont have.....

Posted by sean > 2013-03-30 23:15 | Report Abuse

thanks KCChong

Posted by Frank Tan > 2013-04-03 10:51 | Report Abuse

time to collect....

Posted by gark > 2013-04-04 17:18 | Report Abuse

Nice move today.....

Posted by necro > 2013-04-08 20:29 | Report Abuse

Bila mau dividen

Posted by Frank Tan > 2013-04-09 15:02 | Report Abuse

oh yesssss

Posted by sean > 2013-04-11 17:25 | Report Abuse

seems like it can't move up further

Posted by sean > 2013-04-12 23:52 | Report Abuse

time 2 accummulate

Posted by Matsaham Mashuk > 2013-04-15 15:41 | Report Abuse

bullish..

Posted by sean > 2013-04-15 23:01 | Report Abuse

Mahsuk: bullish or bearish?? time 2 accumulate?

Posted by necro > 2013-04-15 23:15 | Report Abuse

5cents dividen?

Posted by Matsaham Mashuk > 2013-04-18 09:56 | Report Abuse

uptrend mode continue..

Posted by fishbone > 2013-04-18 22:11 | Report Abuse

necro: the 5 sen dividend is a guess or some reliable news? If so it's quite little

Posted by Alvian > 2013-04-26 17:55 | Report Abuse

what happen to CB, the price getting lower

Posted by sasopi87 > 2013-04-26 20:03 | Report Abuse

it can jump anytime because still shares buyback.......!!!

Posted by Alvian > 2013-04-26 20:36 | Report Abuse

i'm afraid this year financial result will lower than their expectation

Posted by Alvian > 2013-04-30 21:41 | Report Abuse

the Financial result for 2012 it's already comes out with double of profit compared to 2011. but the price still getting lower, i think q1 2013 and q2 2013 performance are going to fall significant...

Posted by fishbone > 2013-04-30 23:30 | Report Abuse

PE= 7 to 8. Most analysts set TP> RM3

CBIP -Visit Note: A Proxy To The Plantation Sector, Shielded From CPO Price Volatility
Author: kiasutrader | Publish date: Thu, 18 Apr 09:53



--------------------------------------------------------------------------------



We continue to see value in CBIP, as a company which is a proxy to the plantation sector, but is shielded from CPO price volatilities. Even in times of low CPO prices, plantation companies, particularly the larger ones that CBIP deals with, will continue with their capital expenditure on new mills, in preparation for the upcoming maturity of their plantation estates, and this will drive CBIP’s short-term earnings growth

- Medium- and long-term growth drivers in place. Going forward, we believe CBIP’s new zero discharge mill and recently proposed acquisition of the Vickers Hoskins boiler factory will help to expand its market reach further, to ensure medium-term growth. For the long term, CBIP’s plantation operations in Indonesia will start contributing more significantly from FY17 and this will provide CBIP with another leg of growth.

- We met up with management of CBIP recently and came away with some key highlights: (1) Orderbook still solid, robust new contract flow; (2) Expanded capacity will ensure demand is met; (3) New technology zero discharge plant could add another source of revenue; (4) Acquisition of Vickers Hoskins boiler company would extend market reach; and (5) Associate plantation contributions expected to weaken in FY13, but working hard at planting up its Indonesian estates now.

- Forecasts tweaked down slightly. We have tweaked our forecasts for CBIP down by 1.3-2% for FY13-15, after imputing in slightly higher capex of RM80m for FY13 (from RM70m previously) for the higher new planting costs.

- Buy recommendation reiterated. For a company with such attractive prospects, valuations remain at an undemanding 7-8x PE for FY13-14. As such, we reiterate our Buy recommendation on the stock with a slightly lowered SOP-based target price of MYR3.26 (from MYR3.35).

Source: RHB

Posted by Alvian > 2013-05-04 21:16 | Report Abuse

monday prepare for another accumulation on lower price

Posted by tiekyu > 2013-05-05 07:51 | Report Abuse

Company buy back share at RM2.50. How to accumulate at lower price? PE = 7-8x ? I thought the correct PE is 2-3x ..

Posted by Alvian > 2013-05-05 09:07 | Report Abuse

let see on monday then...

Posted by Alvian > 2013-05-05 11:36 | Report Abuse

if u look their buyback history, actually their avg is above 2.5.. if they can buyback again for lower price, it will be advantages for them... since this Q12013 forecast result would likely lower compare to Q12012. eventhough the PE already down, but it much more possible to lower than this...

Posted by Alvian > 2013-05-06 09:36 | Report Abuse

this the effect of politic, they always try to get our heart in manyways

Posted by shirley1 > 2013-05-06 21:31 | Report Abuse

gogogogo.. dividend coming ?

Posted by fishbone > 2013-05-06 21:40 | Report Abuse

Dividend should be around the corner. Last year 30 sen. This year??

Posted by shirley1 > 2013-05-06 21:42 | Report Abuse

guess is 5 cents :)

Posted by Alvian > 2013-05-07 10:19 | Report Abuse

when the general meeting would be held?

Posted by shirley1 > 2013-05-09 16:17 | Report Abuse

aaaahhhh..

Posted by Alvian > 2013-05-09 16:18 | Report Abuse

oh bad, i sold it out 2.62

Posted by kerengga > 2013-05-09 16:27 | Report Abuse

=)..hoooo liaoooo!

Posted by Alvian > 2013-05-09 16:30 | Report Abuse

hahaha, i'm so afraid about political situation nowadays... better keep cash