Profit or loss a bit hard to say. You can say CPO price increase, profit might increase. Don't forget about the interest the company need to pay for Sabah land acquisition. I think just KIV this stock until the Sabah land is planted with high yield planting materials. If most fruit can fetch 27% OER, then most probably turnaround the company.
BOUSTEAD PLANTATIONS's main business segments include oil palm plantations and milling.
Its earning performance has been overall fluctuating in last five years, whereby its earning per share overall fluctuated from -2.3 sen to 27.7sen. The Group posted a loss before tax of RM51 million for the year 2018. This was primarily as a result of significantly lower palm product prices which impacted its bottom line. High start-up expenses for the acquisition of 11,579 hectares of land in Sabah and the rehabilitation and improvements for these estates also contributed to the deficit. The Group declared a dividend of 7 sen per share in the 2018 financial year, which amounts to a dividend yield of 9.72%.
Based on comparison of 44 plantation counters listed in Bursa Malaysia, it is found that currently BOUSTEAD is not ranked as one of the TOP 8 plantation counters worthy to pay attention to and potentially invest in. However, BOUSTEAD stands out in performance indicators such as having high market capitalization (RM 1,512 million).
please remember "why Bplant bought sabah land from Dutaland"??? any benefit to shareholder, and debt very high now....who dare to put money to Bplant?? another airasia??
Guys , impairment loss only. Can reverse the impairment once the CGU is performing. Now need to see what type of transformation program to the Sabah land. Their OER is increasing.
This is the time to go AGM and see what is the company plan to improve the Sabah land. Plantation is not 1 year business. It is 20 years business. If they decide to sell off the land like how SDP sell Liberia. then different cas.e
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....
Cloudboy
456 posts
Posted by Cloudboy > 2019-11-25 11:29 | Report Abuse
Its plantation theme now...a lot of plantation stock rebound almost 40% to 50% from the low...
With forecast better palm oil price next year...i think that plantation sector will have sustainable rally..