$1.46 RED. Is that the best FGV can manage to put up as one of the biggest plantation counters, when all the other plantation counters are doing a run up of record profits?
We are dealing with an industry that feed 8 billion people across the planet.
The global market for Palm Oil estimated at US$42.8 Billion in the year 2020, is projected to reach a revised size of US$57.2 Billion by 2026, growing at a CAGR of 5% over the analysis period. Palm oil is a very productive crop. It offers a far greater yield at a lower cost of production than other vegetable oils. Global production of and demand for palm oil is increasing rapidly
The global production of palm oil was around 75 million metric tons in the marketing year 2020/21, at par from approximately 76 million metric tons in 2019/2020. In that period, Indonesia and Malaysia were the leading exporters of palm oil worldwide. Indonesia accounted for 57% of this (43 million tonnes), and Malaysia produced 27% (22 million tonnes).
The biggest consumers of palm oil are India, the European Union, and China, with the three consuming nearly 50% of world exports.
Palm Oil yields 4-10 times more oil per hectare than other sources of vegetable oil such as soybeans or coconut palms. This makes it an efficient and profitable use of land. The economic value of palm oil translates into jobs, infrastructure and tax revenues. The palm oil yield per hectare is estimated at 8 tons per year at most. Additionally, the profit farmers make per hectare is around 3.4 tons per year. So it’s a good business if managed properly..
#DickyMe "Natural disasters and severe weather will occur frequently.
Prepare for stock market crash." ===========================================
YES! We are witnessing erratic weather. Cold weather will be felt much colder than before.
Stock market crash has already begun.
Expect the dollar to rise more till middle of next year 2022. Unprecedented inflation will be seen
Real estate will be hit hard. Bitcoin is crashing and may find support around US$44500, however it is weak support. USD18500-18700 is a nice entry for a pullback.
Political front is still murky and the nation is in auto pilot. Dimwitted politicians have gambled away the nation and pawned it's people. Life will not be as easy as before even with BN or UMNO ruling.
There are no good leaders, only good racist pirates. Malaysia is sliding and becoming pariah nation in South East Asia.
2021 is ending in a BEARISH MODE.
How is your year 2021 ending? 28/11/2021 12:31 AM
Ye ke?
FCPO price for December 2021 is still moving up to all time high RM 5,900..
All of us know that plantation share traded at huge discount to its historical PE valuation, despite reporting earth shattering record profit due to very strong record cpo prices, but bcos of ESG concern( that are actually unfounded} the mkt is ignoring palmoil stock loh!
Thus as a savvy investors, we need to be Contraian & rational loh! If funds ignore palmoil stock, thus we can pick it up as a bargain as its fundamental are good investment mah!
Contraian Investor will enjoy good earnings & strong dividends which is the main basic fundamental of all investment in share mah!
Just think logically lah....u actually invest in stock for income mah....not really invest bcos of ESG lah!
Even if u r the minority who invest base on ESG as a sole criteria, if the investment do not generate good return in the long run, u r still screwed mah!
Palmoil is a food & and industrial product....the most efficient vege oil & fats input in the world mah!
Suppose u do not use palm oil & use soya oil instead as an alternative....u need to plant 8x more land to produce the equivalent palmoil mah!
But then soya oil will have even more ESG concern than palmoil mah!
Just imagine At the end, the world wil be paying more for vege oil & fats at the same time degrade the environment even more loh!
Thus it is only logical that the ESG concern on palmoil stock are unfounded given they are no better alternative for better oil & fats thus palmoil is still the best mah!
Thus rationally if u invest in palmoil stock u are protected the ESG, bcos it is the most efficient, at the same time u earn super decent dividend mah!
Furthermore u r well protected from inflation bcos plantation is a proxy of investing in cheap land...a very scarce resources mah! in this world loh!
Unless u want to migrate to MARS to find new land loh!
As at the date of this announcement, the Company's public shareholding spread based on the Company's Record of Depositors as at 25 November 2021 is 13.19%.
USD is strengthening against the RM. All exports driven sector like Glove, Export orientated Techs, Palm Oil and Energy will benefits from this development.
FGV 3Q profit jumps 192% y-o-y on higher CPO price, improved sugar and logistics business...
KUALA LUMPUR (Nov 30): FGV Holdings Bhd’s net profit for the third quarter ended Sept 30, 2021 (3QFY21) stood at RM399.39 million, a 191.76% jump from RM136.89 million in 3QFY20 on the back of higher revenue due to better operational profit driven by higher crude palm oil (CPO) price and improved performance of its sugar and logistics sectors.
The plantation group’s earnings per share swelled to 10.9 sen compared with 3.8 sen previously, as its filing with Bursa Malaysia showed.Quarterly revenue climbed 33.25% to RM5.32 billion against RM3.99 billion a year ago.
According to FGV, profit in the plantation sector surged to RM481.19 million from RM232.89 million a year ago, on the back of higher average CPO price realised of RM3,798 per tonne and higher sales volume of fertiliser..
To Our Success!
Meow
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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....
BN_better
991 posts
Posted by BN_better > 2021-11-22 09:32 | Report Abuse
BN won >2/3 majority in PRN Melaka so early GE15 possible? FGV must perform well?