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JTIASA–Fundamental Analysis (15 May 2014) - L. C. Chong

Tan KW
Publish date: Thu, 15 May 2014, 02:20 PM
Tan KW
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Good.

 

Posted by L. C. Chong on May 15, 2014

JTIASA Analysis:-

Excel – http://1drv.ms/1mZRif8

My View:-

- Fair value
  – EY%: 3.31 – 5.71
  – Analysts’ forecast JTIASA may be able to achieve 0.12 and 0.22 EPS for FY14 and FY15. However, based on performance of 2 quarters of FY14, the cumulative EPS is 0.04. I am not sure JTIASA can even achieve 0.10 EPS by the end of FY14. So, for absolute EY%, I discounted the analysts’ forecast to 0.10 (FY16) and 0.15 (FY15).
- The CPO price moves in a cyclical manner. JTIASA earnings will improve in the next few years.
- In terms of productivity, costs, efficiency and financial health, KMLOONG outplayed JTIASA. JTIASA may have greater potential but KMLOONG’s future prospect is not bad.
  – Being a leader of the timber and plywood industry, it has not been showing much profit because they have used the cash from the timber business to plant oil palms. It started planting oil palms in 2002 aggressively and the following tables show the planted area and it’s FFB production.
  – The total planted area and the FFB production have been increasing rapidly since 2005. The palms are physically growing and producing more and more fruits every year.
  – Their current FFB yield is not optimum because most of the palms are young. Their FFB yield will improve when their immature trees become mature.

Latest Financial – Q2 2014 Financial Report (25 Feb 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1547381

At the time of writing, I did not own shares of JTIASA.

http://lcchong.wordpress.com/2014/05/15/jtiasafundamental-analysis-15-may-2014/

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Be the first to like this. Showing 6 of 6 comments

Stock Operator

later the mr koon shoot u if you say jtiasa not as good.

2014-05-15 15:26

lmenwe

i couldn't agree anymore with you. however this is not facebook. there is no like for me to click. jtiaa did have good future prospect but someone are way too ambitious when he promote the share.

2014-05-15 16:41

kcchongnz

LC is showing his analysis with facts and figures and did not say which stock is no good, I think. What is that to shoot?

2014-05-15 16:45

bracoli

Walao weh.. Mr.koon 100% say CPO will up one leh.. Dun play play

2014-05-15 17:00

Stock Operator

eh, you show this to analysis to anyone... even a 12 year old kid.
Anyone can tell you which counter the writer is leaning towards.

And with that, if you're heavy on jtiasa, u will shoot the person that wanna compare jtiasa with another supposedly better counter...

No?

Or did I interpret it wrongly?

2014-05-15 17:08

Stock Operator

*show this*

2014-05-15 17:09

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