Koon Yew Yin's Blog
Plantation stocks comparison - Koon Yew Yin
Koon Yew Yin
Publish date: Fri, 11 Mar 2022, 12:03 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
When Crude Palm Oil price is rising to historical high, it is advisable to buy plantation stock because they have very good profit growth prospect.
Which is the best plantation stock to buy?
The CPO price chart below shows that the CPO price started to go up from Rm 2,000 per ton in May 2020 2022 to peak at historical record high of Rm 7.108. In fact, CPO price has been below Rm 2.500 per ton for many years before.
The table below is a comparison of 8 leading plantation stocks which shows that Jaya Tiasa is the cheapest stock to buy, costing Rm 15,000 per hectare or Rm 6,000 per acre. Where can you buy oil palm plantation at Rm 6,000 per acre???. Please tell me if I have made a mistake!
|
Name |
Hectares |
Market Cap. |
MC÷Hectares |
|
Jaya Tiasa |
70,000 |
Rm 1,052 m |
Rm 15,000 |
|
MHC |
11,400 |
Rm 226 m |
Rm 19,800 |
|
Sarawak Pl |
35,000 |
Rm 784 m |
Rm 22,400 |
|
Subur |
13,00 |
Rm 362 m |
Rm 27,900 |
|
Cepatwawasa |
10,000 |
Rm 334 m |
Rm 33,400 |
|
Boustead Pl |
75,000 |
Rm 2,347 m |
Rm 31,700 |
|
SOP |
88,000 |
Rm 3,437 m |
Rm 39,000 |
|
Hap Seng |
35,000 |
Rm 2,232 |
Rm 63,000 |
Back ground of Jaya Tiasa
Jaya Tiasa Holdings Bhd is an investment holding company, operates as a timber producer in Malaysia. Business activity of the group is breakdown into various segments which include logs trading, manufacturing, oil palm, and others. Through its subsidiaries, the company manufactures a product such as sawn timber, blockboard, plywood, veneer and related products which are sold in the market of Asia Pacific, Middle East, Europe and Latin America. In addition, the firm also provides air transportation services and it is further engaged in the development of oil palm plantations.
The controlling shareholder is the family of Tan Sri Tiong Hiew King who is one of the richest men in Malaysia.
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Discussions
Be the first to like this. Showing 22 of 22 comments
so this morning he said "My advice is never to buy any stock based on NTA" and "the most powerful catalyst that can push up share price is profit growth prospect" and a few hours later he is pushing an asset-based valuation metric (which is utter nonsense btw - his approach is only relevant if you are taking over the company, you buying in as a minority have no control over how the promoters run the plantation and the value per hectare of the plantation land will reflect how well the plantations and crop are managed).
Make. Up. Your. Mind.
2022-03-11 14:09
Wise choice & thumb up. In term of volume, JTiasa was the most traded plantation counter. The Sibu tauke also control the local Chinese media (Sinchew, Nanyang, Chinapress & Guangming). Just imagine when the editors start to promote JTiasa.
2022-03-11 14:52
Koon must be really losing his marbles coming up with such pathetic comparative analysis. By the way, Tan Sri Tiong has been unwell for years to the detriment of his various businesses' leadership.
2022-03-11 16:01
Its cheap because its poorly managed. That's all.
HS can have net margin of 30-50% which is amazing. Sadly they do not want to grow, its like this CK LAU??? can live forever.
KYY on the other hand gamble like no tomorrow.
2022-03-11 16:13
Uncle is very confused of himself . Didn't he repeatedly said the powerful tool to move share price is EARNING ?? Why is he not looking at earning parameters ?
Market cap/ha value doesn't necessary mean the plantation is cheap! The true value of the plantation assets lies on the following factors :
(1) Earning capacity of the plantation land which again highly dependent on soil type/condition, topography, health of the bearing palms etc.
(2) Realisable market value of the land which relate to locality and potential development value
For simplicity, let me just compare the various important parameters of Jtiasa and Bplant which is an average plantation:
Planted area jtiasa : 69,589 ha
Planted area Bplant : 73,500 ha (including non bearing immature area)
Own FFB production Jan -Dec 2021 jtiasa : 727,162 mt
Own FFB production Jan -Dec 2021 Bplant : 923,408 mt
FFB yield/ha jtiasa (727,162/69,589) = 10.45 mt/ha
FFB yield/ha Bplant (923,408/73,500) = 12,56 mt/ha
BPLANT'S YIELD/HA IS 20% HIGHER THAN JTIASA.
Oil extraction rate (OER) Jtiasa : 18.1%
OER Bplant : 21.1%
BPANT'S OER IS 16.6% HIGHER
EPS Jan-Dec 2021 jtiasa : 6.98 sen
EPS Jan-Dec 2021 Bplant : 10.77 sen
BPLANT's EPS is 54.3% HIGHER
Dividend FY2021 jtiasa : 0
Dividend FY 2021 Bplant : 8.35 sen/share
Realisable value for all the land of Bplant in west Malaysia of about 30,000 ha is many times higher than Jtiasa land in the remote area in sarawak. About 10,000 ha of Bplant's land in west malaysia at the fringe of or near towns commands commercial value of $600,000 to $1mil/ha . Half of Malakoff estate in Seberang prai was sold at about $1 per ha a few years ago. in 2021, 680 ha of kulai estate was sold $429mil or $622,000 per ha.
These 10,000 ha of Bplant's land with development value (say value at avg 700,000/ha ) is equivalent to 140,000 ha of poor yielding plantation in the remote sarawak. (poor yielding plantation in sarawak fetch about $50,000/ha ).
My intention is not to promote Bplant over jtiasa. It simply to share the facts for the benefit of investing public. All data presented by me in the above can be easily verified.
2022-03-11 16:13
Fair enough. Jaya Tiasa fulfilled his golden rule selection. I think Koon has also considered share price affordability and share liquidity as well.
2022-03-11 16:19
That day old fox ask to buy TDM. So fickle minded no wonder he lost millions. I bought below RM 1. Now only talk
2022-03-11 17:31
Hahahahaha sekejap cakap earnings growth, sekejap cakap NTA. Hahahahaha this old fox
2022-03-11 19:48
Uncle Koon forgot to say that he is heavily invested in Jtiasa. Next day after he has sold, he will post "Time to sell Jtiasa. I made a mistake. I shouldn't have based my selection on price of land alone.."
2022-03-11 20:28
dont trust uncle KYY gel. hes slippery. hhe ll tell people to buy com abc and then when people are buying, he quietly sells making a profit. i fisrt kena from him with dayang. now i never trust him. always curse him
2022-03-11 21:04
Comments here sound more intelligent than the post's of the author himself.
2022-03-11 21:27
Koon used to promote plantation as well in 2015/2016 if not mistaken. That time he was also claiming about valuation per hectare. Next, we know, all the plantation masuk longkang. Whatever cheap valuation per hectare is con job. If the company have no good yields due to the soil or less rain/fertilizer or the trees are old, all the hectares are meaningless.
2022-03-12 01:26
Uncle recommended R sawit many yrs back based on the low acreage price. What happen after that was a disaster
2022-03-12 12:51
KYY should had recommended JTiasa around 65 sen in late Jan 2022
Recommending the stock after a sharp increased to RM1.11 (increased of 70% from 65 sen) with 2 months is highly suspicious. Typical "pump and dump" technique
Buyer beware
2022-03-12 13:51
from tdm, now asking to buy jtiasa.
change ship so fast...!?
no money liao, all in tdm....caught you. LOL
2022-03-12 14:00
Story again another story, Uncle is painting a nice piece of story for his wartetfish followers mah ?
Those neglect followers will buy uncle story, till their last token in their pocket varnished out.
however, doesnt mean jtiasa will not able to be goreng-ed up.
Good luck everyone.
PUT YOUR BET PLEASE !
always do your own homework
2022-03-13 17:27
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Buying plantation stocks main criteria is the profit of the company for the past five years and NOT how cheap is the cost of land. Jaya Tiasa is the last choice among the 8 companies listed above.
2022-03-11 13:09