I have posted several articles on the bright future of plantation stocks in which I said that all the plantation companies will report historical high profit for the quarter ending March 2022 due to the historical high CPO price. 

Teck Guan just reported 42.98 sen EPS for its quarter ending January 2022. It reported 1.48 sen EPS in its previous quarter. Even if it reported double its profit or 100% increase, shareholders should be very happy. But its profit jumped 29 times from 1,48 sen EPS to 42.98 sen EPS. It is leading the way to create history for all plantation stocks.

Yesterday Teck Guan share price jumped 26 sen from Rm 1.37 to close at Rm 1.63. The whole day trading range was Rm 1.57-1.76. 

Since all plantation stock prices have sky rocked, I posted an article to advise investors to wait for the price correction to buy. In fact, all plantation stock prices have dropped between 15-20% in the last one month. Looks like a few stock price corrections are overdone.

If you examine the CPO price chart carefully, you will notice that CPO price was around Rm 2,500 per ton for many years. It started to shoot up from Rm 2,000 in May 2,020 to above Rm 7,000 per ton. It has been going up for nearly 2 years. The current price is Rm 5,566 per ton.

The Ukraine-Russia conflict which started on 24 February has affected the export of corn and sun-flower oil. As a result, the war is also helping to push up CPO price.

While writing this article reminds me of my experience in oil palm plantation in Tawau, Sabah because Teck Guan’s plantation is in Tawau. 

IJM Plantation history:

About 35 years ago, I was the CEO of Mudajaya Construction. Our company had a road construction contract in the district of Tawau, Sabah. The road passed through a FELDA plantation. The maintenance was very poor, all the palm trees were dying and all the workers quarters were delipidated. FELDA could not managed and sold the whole plantation to us at Rm 1,000 per acre. Subsequently we bought a lot more land from the Government at Rm 760 per acre to plant more oil palm trees.

Subsequently, IGB, Jurutama and Mudajaya jointly listed IJM Corporation Bhd. Dato Goh Chye Keat was the 1^st CEO and Tan Sri Krishnan Tan was the 2^nd CEO. I was just a Director. When our oil palm plantation company began to make more and more profit every year, we listed IJM Plantation Bhd.   

To cut the story short, KLK acquired the 56.2% stake at RM3.10 per share, or a total of RM1.53 billion, after IJM Corp accepted the offer from KLK on 11 June 2021.

Based on the historical high CPO price, all plantation companies will report record profit for the quarter ending March which should be announced before the end of May.

Investors should not miss this golden opportunity to make money from plantation stocks.