@TehBeng, Depends who you ask. If apple 168 or rr, they will tell you below RM 1 soon. If you ask the Dr. Kenneth, the CEO....he just close his mouth and Um chiew. He a'dy says, wait till end of the month. The results should be optimistic. To me, they have perform well when price is at $70+. I can't see any reason how they can screw up when it is at 90+ 100+ & 110%.
Yes if believe so massive profit and huge revenue increase and this time respol will be included. Remember they not only have oil but also gas. So you can imagine. Possible higher share price and also generous dividend or bonus. Let see how far i can go.
Will today break 1.50??? hehehe..... I think super inflation is coming. News reported in June, most food will raise by another 60%. Keeping my hibiscus to hedge against the inflation. Any other stock in mind that can hedge against inflation. I know many says plantation. I'm not familiar with plantation especially with the labor issue, fertiliser, logistic cost and lastly most of them in Indonesia and not sure is Malaysian company operate in Indonesia also subject to the no exporting.
@titanium yes conceptually plantation should be able to hedge against inflation. however, be cautious on each company's size of hedging of forward contracts (ie lock yesterday's price for tomorrow's selling price) i got in one company for the macro but the mgmt screwed up by overhedging. in this buoyant market, naked price is syiok .
Good point. Never occur to me some company might have have already lock in their produce on a future contract. So, with current rise of CPO price, they won't be able to benefit much. But it goes both was as well. If the price tank, at least they have sold. Can't have best of both world.
If not because of increased systematic risk like interest rate hike, inflation, currency exchange manipulation, equities mkt worldwide will not fall into the doldrum like now. Otherwise, Hibiscs shid be at least 2 by now. EPS fr coming qtr shid be at least 7 sens
According to latest Hong Leong Investment Bank research, published on 9th May 2022, for FY2023 ( July 2022 - June 2023), assumptions :
1) average realised crude oil price for FY2023 = USD 90/bbl 2) net production for FY2023 = 23,380 bbl/day 3) revenue RM 2628m, EBITDA RM 1565m, net profit RM 626m 4) cash RM 714m , debt = zero
If share price RM 3.00 , total share 2012m, market cap should be RM6,036m
How to evaluate hibiscus ?
1) Price to Earnings Ratio (PER) method PER for FY2023 = market cap / net profit = 6036 / 626 = 9.64
2) EV / EBITDA method EV = Enterprise Value = Market cap + Total debts - cash EV / EBITDA = ( 6036 + 0 - 714 ) / 1565 = 3.4
3) EV/ 2P reserves method EV = Enterprise Value = Market cap + Total debts - cash USD to MYR conversion rate = RM 4.1 Latest 2P reserves = 77.3 million boe EV = 6036 + 0 - 714 = RM 5,322m = USD 1,298m EV/ 2P reserves = 1298 / 77.3 = USD 16.8/boe If compared with EnQuest = USD 12/ boe. Range of EV/ 2P reserves for other medium E&P companies in Norway and UK = USD 13.6-31.1/boe
Conclusion : If the local and foreign fund managers are willing to evaluate hibiscus at PER around 10, EV/EBITDA around 3, and EV/ 2P reserves around 17 , hibiscus has possibility to reach RM 3.00 in FY2023
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