Jan 27): Oil palm planters in Malaysia are confronting a hard truth — behind the red-hot rally in prices are thousands of jobs that nobody wants.

While high prices typically encourage planting and production of crops, output in No. 2 grower Malaysia slumped to a five-year low last year and planters say the main reason for that is the industry’s worst-ever shortage of workers.

The inability to increase supply in response to rising prices goes to the heart of what’s driving palm oil to record highs. Output growth in top producer Indonesia is slowing too. This is important for global food inflation because the two countries account for more than 80% of world supplies, and consumption of the edible oil in everything from food, to detergent and fuel is expanding.

“The volume of palm oil that will come onto the market is more or less fixed and not going to grow very much,” said Julian Conway McGill, Head of South East Asia at LMC International, a consulting firm. “But the world keeps needing more vegetable oil for food. We need to get those yields up.”

Jan 27): Oil palm planters in Malaysia are confronting a hard truth — behind the red-hot rally in prices are thousands of jobs that nobody wants.

While high prices typically encourage planting and production of crops, output in No. 2 grower Malaysia slumped to a five-year low last year and planters say the main reason for that is the industry’s worst-ever shortage of workers.

The inability to increase supply in response to rising prices goes to the heart of what’s driving palm oil to record highs. Output growth in top producer Indonesia is slowing too. This is important for global food inflation because the two countries account for more than 80% of world supplies, and consumption of the edible oil in everything from food, to detergent and fuel is expanding.

“The volume of palm oil that will come onto the market is more or less fixed and not going to grow very much,” said Julian Conway McGill, Head of South East Asia at LMC International, a consulting firm. “But the world keeps needing more vegetable oil for food. We need to get those yields up.”

Nobody is so good to make you rich for no motive behind.

Just be mindful of the high growth story coming to stop when interest rate goes up and Fed pulling off QE. Investors will have to go back to basic .

It’s prudent to stop chasing stocks or sectors that is already very lofty in valuations. This is especially so when there are many heighten risk factors around presently . When interest rate keep going up, inflation out of control and supply chain problem prolonged, many high growth stories (to justify lofty valuations) will come to an end .

CPO price at historic high of over $5,000 pmt and robustly high earnings of plantation companies are certainly not fake ! The numbers are all there .

Down stream commodities producer will benefit, including CPO producers.

More pullback is expected for Tech .
Whereas half of the plantation companies are trading at 5-7 x PE . Many big plantations are trading at historic low single PE. DY at high level . Plantation is the safest place to be.

After the recent pullback, most tech counters are still grossly overvalued with PE between 40 to 80 times ! How to justify such lofty valuations?

CPO price level and earning potential is a vast difference between now and the last many years before 2021! Just be patient for 1-2 more qtrs .

FCPO Feb contract broke $5,500!
Unbelievable!

Yes, it’s very close to $5,500! Incredible. Plantations are laughing to the bank again .

Which sector is better to invest than palm oil plantation ?
Can’t find any .

SC rules requiring disclosure

I hope it will go lower .

EPU approval already granted on 6 Jan. Land surveyor to establish the final sum has also completed. It’s a done deal pending some paperwork.
Q1 2022 NPAT will be around $423 mil ($323 mil gain from land disposal + about $100 mil npat from operations).
EPS Q1 2022 will be about 19.2 sen for a share trading at 71sen! Can you believe it ?

Still very lofty PE!

FY2019 EPS 2.8 sen
FY2020 EPS 4.17 sen
YTD sept 2021 EPS5.87 sen.
PE over 100x based on average earning in last 3 years!

I think there is good future for petronM.

The serious overcapacity issue which eventually lead to cut throat product pricing can not be ignored.

Glove industry big problem is serious overcapacity . This will result cut throat product pricing in the near future.

When Indonesia limit the amount of palm oil for export, it is very positive for Malaysian based plantation companies. It is negative for plantation companies having large area in Indonesia as their selling price is somewhat tempered lower .

Global Hyperinflation is largely caused by high price of commodities. I think buying the commodities upstream producers is a good bet for this year .

oil and coal price spike will lead the broader commodities market higher including CPO and metals. The supply chain hiccup, tight energy supply, tight labor problem , China's decarbonising, wild weather, pandemic lockdown, lack of new downstream investment (particularly in O&G and cpo sectors), etc ,will continue to benefit the commodities in 2022.

https://newswav.com/A2201_jnrJ9H?s=A_3nh6ymV
Less qty for export means higher price expected?

https://newswav.com/A2201_jnrJ9H?s=A_3nh6ymV
Export volume will be even tighter .

https://newswav.com/A2201_jnrJ9H?s=A_3nh6ymV
This will make export volumes tighter .

The major shareholder, Chan, is person with high ego and never want to learn his mistakes! He fails all the shareholders miserably!

Not true . Most small and mid cap plantations are in very healthy net cash position. Even the big cap plantation’s bank borrowing is merely a small fraction of their undervalued assets. Bear in mind that plantation has very strong operating cashflow to manage their loans .

No doubt Palm oil stock is very good , it is still very important to diversify your portfolio .

Plantation will do well due to tight supply of edible oil .
I think steel , energy and some other commodities stocks will also do well in the mid term for the same reasons.

Amid very weak market sentiment and retail investors have their plate full, right issue is absolutely a bad idea. Many retail investors can't afford to fork out more money to subscribe. Price may be under greater pressure come closer to ex date.

All top Executives involved must go to jail! Shareholders must press for that to happen.

KUALA LUMPUR (Jan 6): The Employees Provident Fund (EPF)’s Chief Executive Officer, Datuk Seri Amir Hamzah Azizan ,in the
statement on EPF’s 2020 annual report highlighted the environment, social and governance (ESG) assets are expected to generate between 5% and 7% in the long-term.

Meanwhile, Amir added that the provident fund also plans to play a more active role in encouraging its investee companies to uphold their ESG principles.

“Key for us is engagement, and a lot of our voting guidelines were developed to ensure investee companies uphold their principles of corporate governance, such as having a good balance between independent and non-independent directors,” he elaborated.

Comment:
Yes! The key is engaging with the plantation companies to improve their ESG standards, not by irrational selling down plantation counters that generate good earnings and contributing greatly to government’s coffers! Continuous sell down is destroying value to all others investors and capital market at large. EPF must act responsibly . Stop the irrational sell down!

KUALA LUMPUR (Jan 6): The Employees Provident Fund (EPF)’s Chief Executive Officer, Datuk Seri Amir Hamzah Azizan ,in the
statement on EPF’s 2020 annual report highlighted the environment, social and governance (ESG) assets are expected to generate between 5% and 7% in the long-term.

Meanwhile, Amir added that the provident fund also plans to play a more active role in encouraging its investee companies to uphold their ESG principles.

“Key for us is engagement, and a lot of our voting guidelines were developed to ensure investee companies uphold their principles of corporate governance, such as having a good balance between independent and non-independent directors,” he elaborated.

Comment:
Yes! The key is engaging with the plantation companies to improve their ESG standards, not by irrational selling down plantation counters that generate good earnings and contributing greatly to government’s coffers! Continuous sell down is destroying value to all others investors and capital market at large. EPF must act responsibly . Stop the irrational sell down!

KUALA LUMPUR (Jan 6): The Employees Provident Fund (EPF)’s Chief Executive Officer, Datuk Seri Amir Hamzah Azizan ,in the
statement on EPF’s 2020 annual report highlighted the environment, social and governance (ESG) assets are expected to generate between 5% and 7% in the long-term.

Meanwhile, Amir added that the provident fund also plans to play a more active role in encouraging its investee companies to uphold their ESG principles.

“Key for us is engagement, and a lot of our voting guidelines were developed to ensure investee companies uphold their principles of corporate governance, such as having a good balance between independent and non-independent directors,” he elaborated.

Comment:
Yes! The key is engaging with the plantation companies to improve their ESG standards, not by irrational selling down plantation counters that generate good earnings and contributing greatly to government’s coffers! Continuous sell down is destroying value to all others investors and capital market at large. EPF must act responsibly . Stop the irrational sell down!

Jan 7): More bad weather for the world’s oilseed growers is pushing rapeseed and canola prices to fresh records and adding to food-inflation worries.

Futures have been on a tear for a while, after last year’s harvests in Canada and Europe were plagued by scorching drought and planting cutbacks, cutting global rapeseed stockpiles to a four-year low. Now, worries are mounting about supplies of rival vegetable oils, with hot and dry weather hurting South American soybean prospects and flooding hitting palm oil farms in Malaysia.

As the recent crude oil rally also aids demand for the crops to make biodiesel, Paris rapeseed futures and North American canola notched new all-time highs on Friday. Their oils are also used for everything from frying French fries to mixing salad dressings. Rapeseed prices have nearly doubled in the past year.

“The situation is really tight, and the buyers are still there,” said Arthur Portier, an analyst at Paris-based farm adviser Agritel.

Paris rapeseed futures surged as much as 5.9% on Friday, the biggest intraday gain since 2009, and North American canola gained as much as 1.5%.

Europe has become increasingly reliant on oilseed imports in recent years, after phasing out crop chemicals that rapeseed growers used to deter pests. That’s exacerbating local prices, as supplies shrink across key exporters, according to Michael Magdovitz, senior analyst at Rabobank in London.

(Jan 7): More bad weather for the world’s oilseed growers is pushing rapeseed and canola prices to fresh records and adding to food-inflation worries.

Futures have been on a tear for a while, after last year’s harvests in Canada and Europe were plagued by scorching drought and planting cutbacks, cutting global rapeseed stockpiles to a four-year low. Now, worries are mounting about supplies of rival vegetable oils, with hot and dry weather hurting South American soybean prospects and flooding hitting palm oil farms in Malaysia.

As the recent crude oil rally also aids demand for the crops to make biodiesel, Paris rapeseed futures and North American canola notched new all-time highs on Friday. Their oils are also used for everything from frying French fries to mixing salad dressings. Rapeseed prices have nearly doubled in the past year.

“The situation is really tight, and the buyers are still there,” said Arthur Portier, an analyst at Paris-based farm adviser Agritel.

Paris rapeseed futures surged as much as 5.9% on Friday, the biggest intraday gain since 2009, and North American canola gained as much as 1.5%.

Europe has become increasingly reliant on oilseed imports in recent years, after phasing out crop chemicals that rapeseed growers used to deter pests. That’s exacerbating local prices, as supplies shrink across key exporters, according to Michael Magdovitz, senior analyst at Rabobank in London.

(Jan 7): More bad weather for the world’s oilseed growers is pushing rapeseed and canola prices to fresh records and adding to food-inflation worries.

Futures have been on a tear for a while, after last year’s harvests in Canada and Europe were plagued by scorching drought and planting cutbacks, cutting global rapeseed stockpiles to a four-year low. Now, worries are mounting about supplies of rival vegetable oils, with hot and dry weather hurting South American soybean prospects and flooding hitting palm oil farms in Malaysia.

As the recent crude oil rally also aids demand for the crops to make biodiesel, Paris rapeseed futures and North American canola notched new all-time highs on Friday. Their oils are also used for everything from frying French fries to mixing salad dressings. Rapeseed prices have nearly doubled in the past year.

“The situation is really tight, and the buyers are still there,” said Arthur Portier, an analyst at Paris-based farm adviser Agritel.

Paris rapeseed futures surged as much as 5.9% on Friday, the biggest intraday gain since 2009, and North American canola gained as much as 1.5%.

Europe has become increasingly reliant on oilseed imports in recent years, after phasing out crop chemicals that rapeseed growers used to deter pests. That’s exacerbating local prices, as supplies shrink across key exporters, according to Michael Magdovitz, senior analyst at Rabobank in London.

(Jan 7): More bad weather for the world’s oilseed growers is pushing rapeseed and canola prices to fresh records and adding to food-inflation worries.

Futures have been on a tear for a while, after last year’s harvests in Canada and Europe were plagued by scorching drought and planting cutbacks, cutting global rapeseed stockpiles to a four-year low. Now, worries are mounting about supplies of rival vegetable oils, with hot and dry weather hurting South American soybean prospects and flooding hitting palm oil farms in Malaysia.

As the recent crude oil rally also aids demand for the crops to make biodiesel, Paris rapeseed futures and North American canola notched new all-time highs on Friday. Their oils are also used for everything from frying French fries to mixing salad dressings. Rapeseed prices have nearly doubled in the past year.

“The situation is really tight, and the buyers are still there,” said Arthur Portier, an analyst at Paris-based farm adviser Agritel.

Paris rapeseed futures surged as much as 5.9% on Friday, the biggest intraday gain since 2009, and North American canola gained as much as 1.5%.

Europe has become increasingly reliant on oilseed imports in recent years, after phasing out crop chemicals that rapeseed growers used to deter pests. That’s exacerbating local prices, as supplies shrink across key exporters, according to Michael Magdovitz, senior analyst at Rabobank in London.

Calvin, you and your followers must buy a lot more to weed out the weak holders , only then it will surge decisively. Hehehe...

.....insurmountable issues....

This company has unsurmountable issues. Leadership quality is a big question mark!! Just leave this stock and move on to other fundamentally solid counters. It's more productive to channel your energy, time and money to many others solid stocks.

Just my 2sen view.

RJ87, Amid poor sentiment in KLSE , a group of people (syndicate) could sell low and /buy low among themselves, thus driving good stock price down. The weak holders or retail traders panic sell and they get eliminated gradually . Once more buyers emerge along with syndicate pushing up, the share price will jump with less resistance.

The safety margin of holding Bplant is very big, especially with high dividend yield.

RJ87, well said. It is undeniable fact that there is huge value in Bplant relative to it existing market capitalisation.

Land value aside, its operations is raking in huge NPAT of $260-280 mil/ year should CPO average price stay around $4,500 . That's about 12 sen EPS for a share that fetch only 70 sen now ! Dividend payout of 60% will give us DY of 10.3%. Dividend payout of 100% will give us DY of 17.1%. That's purely from operations.

(1) Ongoing disposal of 680 acres of Kulai Young land will rake in $428mil cash and net gain of $323 after RPGT and disposal expenses.

(2) Intended disposal of whole Sarawak estates (total 26,526 ha of which 10,300 ha planted and 13,526 unplanted). The estimated market value based on $45,000/ha for planted land and $15,000/ha for empty land is as follow :
Planted : 10,300 ha x $45,000 = $463.5 mil
unplanted : 13,526 ha x $15,000 =$202.9 mil
Total -------------------------- $666.4 mil
Book value per 2020 annual report was $57.3 mil only
Gain on disposal is about $600 mil after disposal expenses.

cashflow from (1)+(2) about $1.09 bil
Gain on disposal (1)+(2) is about $923 mil or 41 sen/share.

Note : a rather low market price for the sarawak estate is used because of its poor yield.

The West can continue with their hypocrisy. But the price differences between palm oil and other major competing edible oil have narrowed to a very small discount since 2nd half 2021. This is an achievement for palm oil industry.

I agree, it may be taken private very soon .

Only up 1 sen . No jump lah.

As investor, I won’t bother day to day or week to week price movements. It’s to much anxiety to do so . If you are in trading strategy, you may be concerned. So, that is the difference.


Posted by titan3322 > Jan 6, 2022 11:46 AM | Report Abuse

Hlo kawan today low is 2.40 now seller at 3.43 lah bro IOI is in the red !

It is only correct to compare prices that have adjusted for previous rights or bonus issue 。
No two way about it .

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Posted Posted by casanwk > Jan 6, 2022 10:12 AM | Report Abuse

Again d pricing rm12 & rm7 is purely based on brokerage chart.. if reading taken from other sources,tradingview is different based on shares split by casanwk > Jan 6, 2022 10:12 AM | Report Abuse

Again d pricing rm12 & rm7 is purely based on brokerage chart.. if reading taken from other sources,tradingview is different based on shares split