cost of production for large cap plantation is USD400-450 pmt. Now CPO physical is trading at RM2950 equivalent to USD705-710. Can you imagine how big is the profit....?
Malaysian palm growers have employed prisoners since 2016, Nageeb said, but the search is intensifying as the coronavirus exacerbates the labour shortage. Malaysia, the biggest grower after Indonesia, was already short of about 36,000 workers before the pandemic, he said. Now that’s risen significantly, which means the country may see up to a 30% loss in potential output
TSH CPO cost is at 1850 per tonne, CPO for July is around 2600, as such one tonne profit for TSH is RM 750. For July TSH had produced 7700MT of CPO, 7700x 700 for July only, TSH had already made 5.8 mil. As of today, August CPO average price was 2800 and September CPO price is 2850. We can foresee that TSH will deliver superb result for at least 20 millions for coming quarter!!!
TSH Resources saw its 1HFY20 core earnings double to RM38.7m on the back of an increase in both CPO prices and FFB production. The encouraging results made up 52% of our full-year expectation but surpassed consensus expectation, making up 61.9%. Given the current CPO price momentum and higher FFB production in the 2H, we expect to see another set of strong results in the 3QFY20. No dividend was declared for the quarter. Maintain Outperform with an unchanged TP of RM1.40 based on 24x FY21 EPS.
Even US soybean price almost hit 1000 USD, but u can see our CPO price still very dummy, this is because we malaysia got very useless minister in plantation & commodidites ministry.
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....
chshzhd
1,908 posts
Posted by chshzhd > 2020-08-26 13:20 | Report Abuse
tsh holds 30% stake in inno