IBs and many pessimist are relentlessly worried that CPO price will fall since the day CPO reached $3,000/- in 2020. CPO reached $5,350 now! Should investors be too concerned if CPO price correct down from today's level ?
I would like to share the year's high (H) , low (L) and the simple average (Avg) from year 2008 to 2021as below :
2008. $4179 (H) , $1403 (L) , $2791 (Avg)
2009. 2887,. 1630. 2259
2010. 3782. 2386. 3084
2011. 3930. 2786. 3358
2012. 3567. 2027. 2797
2013. 2635. 2157. 2396
2014. 2917. 1933. 2425
2015. 2360. 1802. 2081

2016. 3243. 2181. 2712
2017. 3344. 2338. 2841
2018. 2555. 1718. 2137
2019. 3025. 1834. 2430
2020. 3835. 2021 2928
----------------------------------------------------
Avg. 3251. 2017. 2634
----------------------------------------------------
2021YTD 5395. 3471. 4434

2021's H is 29% higher than the highest H (2008)
2021's H is 66% higher than the avg H 2008-2019
2021's L. Is 147% higher than the lowest L (2008)
2021's L is 72% higher than the avg L 2008-2019
2021's Avg is 68% higher than the Avg 2008-2019.

Despite the above , all plantantion counters stock prices are 20-50% below the highs achieved in 2008 -2020 period . Mind boggling indeed.

So, why should there be worries if CPO price indeed correct for 10-20% next year ??
02/11/2021 9:54 AM

Uncle caution CPO price correction . Is that justified?
I would like to share the year's high (H) , low (L) and the simple average (Avg) from year 2008 to 2021as below :
2008. $4179 (H) , $1403 (L) , $2791 (Avg)
2009. 2887,. 1630. 2259
2010. 3782. 2386. 3084
2011. 3930. 2786. 3358
2012. 3567. 2027. 2797
2013. 2635. 2157. 2396
2014. 2917. 1933. 2425
2015. 2360. 1802. 2081

2016. 3243. 2181. 2712
2017. 3344. 2338. 2841
2018. 2555. 1718. 2137
2019. 3025. 1834. 2430
2020. 3835. 2021 2928
----------------------------------------------------
Avg. 3251. 2017. 2634
----------------------------------------------------
2021YTD 5395. 3471. 4434

2021's H is 29% higher than the highest H (2008)
2021's H is 66% higher than the avg H 2008-2019
2021's L. Is 147% higher than the lowest L (2008)
2021's L is 72% higher than the avg L 2008-2019
2021's Avg is 68% higher than the Avg 2008-2019.

(Note : in 2008 , Lehman's collapse in Sept caused global panic and hence commodity prices )

Despite the above , all plantantion counters stock prices are 20-50% below the highs achieved in 2008 -2020 period . Mind boggling indeed.

So, why should there be worries if CPO price indeed correct for 10-20% next year ??
02/11/2021 9:54 AM

IBs and many pessimist are relentlessly worried that CPO price will fall since the day CPO reached $3,000/- in 2020. CPO reached $5,350 now! Should investors be too concerned if CPO price correct down from today's level ?
I would like to share the year's high (H) , low (L) and the simple average (Avg) from year 2008 to 2021as below :
2008. $4179 (H) , $1403 (L) , $2791 (Avg)
2009. 2887,. 1630. 2259
2010. 3782. 2386. 3084
2011. 3930. 2786. 3358
2012. 3567. 2027. 2797
2013. 2635. 2157. 2396
2014. 2917. 1933. 2425
2015. 2360. 1802. 2081

2016. 3243. 2181. 2712
2017. 3344. 2338. 2841
2018. 2555. 1718. 2137
2019. 3025. 1834. 2430
2020. 3835. 2021 2928
----------------------------------------------------
Avg. 3251. 2017. 2634
----------------------------------------------------
2021YTD 5395. 3471. 4434

2021's H is 29% higher than the highest H (2008)
2021's H is 66% higher than the avg H 2008-2019
2021's L. Is 147% higher than the lowest L (2008)
2021's L is 72% higher than the avg L 2008-2019
2021's Avg is 68% higher than the Avg 2008-2019.

Despite the above , all plantantion counters stock prices are 20-50% below the highs achieved in 2008 -2020 period . Mind boggling indeed.

So, why should there be worries if CPO price indeed correct for 10-20% next year ??
02/11/2021 9:54 AM

IBs and many pessimist are relentlessly worried that CPO price will fall since the day CPO reached $3,000/- in 2020. CPO reached $5,350 now! Should investors be too concerned if CPO price correct down from today's level ?
I would like to share the year's high (H) , low (L) and the simple average (Avg) from year 2008 to 2021as below :
2008. $4179 (H) , $1403 (L) , $2791 (Avg)
2009. 2887,. 1630. 2259
2010. 3782. 2386. 3084
2011. 3930. 2786. 3358
2012. 3567. 2027. 2797
2013. 2635. 2157. 2396
2014. 2917. 1933. 2425
2015. 2360. 1802. 2081

2016. 3243. 2181. 2712
2017. 3344. 2338. 2841
2018. 2555. 1718. 2137
2019. 3025. 1834. 2430
2020. 3835. 2021 2928
----------------------------------------------------
Avg. 3251. 2017. 2634
----------------------------------------------------
2021YTD 5395. 3471. 4434

2021's H is 29% higher than the highest H (2008)
2021's H is 66% higher than the avg H 2008-2019
2021's L. Is 147% higher than the lowest L (2008)
2021's L is 72% higher than the avg L 2008-2019
2021's Avg is 68% higher than the Avg 2008-2019.

Despite the above , all plantantion counters stock prices are 20-50% below the highs achieved in 2008 -2020 period . Mind boggling indeed.

So, why should there be worries if CPO price indeed correct for 10-20% next year ??
02/11/2021 9:54 AM

IBs and many pessimist are relentlessly worried that CPO price will fall since the day CPO reached $3,000/- in 2020. CPO reached $5,350 now! Should investors be too concerned if CPO price correct down from today's level ?
I would like to share the year's high (H) , low (L) and the simple average (Avg) from year 2008 to 2021as below :
2008. $4179 (H) , $1403 (L) , $2791 (Avg)
2009. 2887,. 1630. 2259
2010. 3782. 2386. 3084
2011. 3930. 2786. 3358
2012. 3567. 2027. 2797
2013. 2635. 2157. 2396
2014. 2917. 1933. 2425
2015. 2360. 1802. 2081

2016. 3243. 2181. 2712
2017. 3344. 2338. 2841
2018. 2555. 1718. 2137
2019. 3025. 1834. 2430
2020. 3835. 2021 2928
----------------------------------------------------
Avg. 3251. 2017. 2634
----------------------------------------------------
2021YTD 5395. 3471. 4434

2021's H is 29% higher than the highest H (2008)
2021's H is 66% higher than the avg H 2008-2019
2021's L. Is 147% higher than the lowest L (2008)
2021's L is 72% higher than the avg L 2008-2019
2021's Avg is 68% higher than the Avg 2008-2019.

Despite the above , all plantantion counters stock prices are 20-50% below the highs achieved in 2008 -2020 period . Mind boggling indeed.

So, why should there be worries if CPO price indeed correct for 10-20% next year ??
02/11/2021 9:54 AM

IBs and many pessimist are relentlessly worried that CPO price will fall since the day CPO reached $3,000/- in 2020. CPO reached $5,350 now! Should investors be too concerned if CPO price correct down from today's level ?
I would like to share the year's high (H) , low (L) and the simple average (Avg) from year 2008 to 2021as below :
2008. $4179 (H) , $1403 (L) , $2791 (Avg)
2009. 2887,. 1630. 2259
2010. 3782. 2386. 3084
2011. 3930. 2786. 3358
2012. 3567. 2027. 2797
2013. 2635. 2157. 2396
2014. 2917. 1933. 2425
2015. 2360. 1802. 2081

2016. 3243. 2181. 2712
2017. 3344. 2338. 2841
2018. 2555. 1718. 2137
2019. 3025. 1834. 2430
2020. 3835. 2021 2928
----------------------------------------------------
Avg. 3251. 2017. 2634
----------------------------------------------------
2021YTD 5395. 3471. 4434

2021's H is 29% higher than the highest H (2008)
2021's H is 66% higher than the avg H 2008-2019
2021's L. Is 147% higher than the lowest L (2008)
2021's L is 72% higher than the avg L 2008-2019
2021's Avg is 68% higher than the Avg 2008-2019.

Despite the above , all plantantion counters stock prices are 20-50% below the highs achieved in 2008 -2020 period . Mind boggling indeed.

So, why should there be worries if CPO price indeed correct for 10-20% next year ??
02/11/2021 9:54 AM

IBs and many pessimist are relentlessly worried that CPO price will fall since the day CPO reached $3,000/- in 2020. CPO reached $5,350 now! Should investors be too concerned if CPO price correct down from today's level ?
I would like to share the year's high (H) , low (L) and the simple average (Avg) from year 2008 to 2021as below :
2008. $4179 (H) , $1403 (L) , $2791 (Avg)
2009. 2887,. 1630. 2259
2010. 3782. 2386. 3084
2011. 3930. 2786. 3358
2012. 3567. 2027. 2797
2013. 2635. 2157. 2396
2014. 2917. 1933. 2425
2015. 2360. 1802. 2081

2016. 3243. 2181. 2712
2017. 3344. 2338. 2841
2018. 2555. 1718. 2137
2019. 3025. 1834. 2430
2020. 3835. 2021 2928
----------------------------------------------------
Avg. 3251. 2017. 2634
----------------------------------------------------
2021YTD 5395. 3471. 4434

2021's H is 29% higher than the highest H (2008)
2021's H is 66% higher than the avg H 2008-2019
2021's L. Is 147% higher than the lowest L (2008)
2021's L is 72% higher than the avg L 2008-2019
2021's Avg is 68% higher than the Avg 2008-2019.

Despite the above , all plantantion counters stock prices are 20-50% below the highs achieved in 2008 -2020 period . Mind boggling indeed.

So, why should there be worries if CPO price indeed correct for 10-20% next year ??

FBMKLCI: 1,530.92 (-31.39)
Bursa Trade Statistics:
Local Institutions (45.5%): -RM329.3m
Local Retail (31.3%): +RM314.3m
Foreign (23.2%): +RM15.0m

From the trades , Foreigners are not worried by the cukai Makmur, local institutions are! Mind boggling!

Yesterday's statistics

FBMKLCI: 1,530.92 (-31.39)
Bursa Trade Statistics:
Local Institutions (45.5%): -RM329.3m
Local Retail (31.3%): +RM314.3m
Foreign (23.2%): +RM15.0m

From the trades , Foreigners are not worried by the cukai Makmur, local institutions are! Mind boggling!

Yesterday's statistics

FBMKLCI: 1,530.92 (-31.39)
Bursa Trade Statistics:
Local Institutions (45.5%): -RM329.3m
Local Retail (31.3%): +RM314.3m
Foreign (23.2%): +RM15.0m

From the trades , Foreigners are not worried by the cukai Makmur, local institutions are! Mind boggling!

Yesterday's statistics

FBMKLCI: 1,530.92 (-31.39)
Bursa Trade Statistics:
Local Institutions (45.5%): -RM329.3m
Local Retail (31.3%): +RM314.3m
Foreign (23.2%): +RM15.0m

From the trades , Foreigners are not worried by the cukai Makmur, local institutions are! Mind boggling!

Yesterday's statistics

FBMKLCI: 1,530.92 (-31.39)
Bursa Trade Statistics:
Local Institutions (45.5%): -RM329.3m
Local Retail (31.3%): +RM314.3m
Foreign (23.2%): +RM15.0m

From the trades , Foreigners are not worried by the cukai Makmur, local institutions are! Mind boggling!

Yesterday's statistics

FBMKLCI: 1,530.92 (-31.39)
Bursa Trade Statistics:
Local Institutions (45.5%): -RM329.3m
Local Retail (31.3%): +RM314.3m
Foreign (23.2%): +RM15.0m

From the trades , Foreigners are not worried by the cukai Makmur, local institutions are! Mind boggling!

Yesterday's statistics

FBMKLCI: 1,530.92 (-31.39)
Bursa Trade Statistics:
Local Institutions (45.5%): -RM329.3m
Local Retail (31.3%): +RM314.3m
Foreign (23.2%): +RM15.0m

From the trades , Foreigners are not worried by the cukai Makmur, local institutions are! Mind boggling!

Yesterday's statistics

FBMKLCI: 1,530.92 (-31.39)
Bursa Trade Statistics:
Local Institutions (45.5%): -RM329.3m
Local Retail (31.3%): +RM314.3m
Foreign (23.2%): +RM15.0m

From the trades , Foreigners are not worried by the cukai Makmur, local institutions are! Mind boggling!

Yesterday's statistics

FBMKLCI: 1,530.92 (-31.39)
Bursa Trade Statistics:
Local Institutions (45.5%): -RM329.3m
Local Retail (31.3%): +RM314.3m
Foreign (23.2%): +RM15.0m

From the trades , Foreigners are not worried by the cukai Makmur, local institutions are! Mind boggling!

ignore the old senile and cunning uncle . Nowadays nobody believe in him anymore.

with 18 sen special dividend which is independent of the dividend policy (as stated by Management) + possibly 20 sen final, it is too tempting for me to top up when price dip.

AmInvest is wrong and they made a very shallow and simplistic study. I can clearly point out on what they said on the few plantation companies. The impact on all this big plantation companies are much less that what they estimated as these company's business is structured into many Vsmaller subsidiary companies by region/estate/business unit/equity JV etc. Cukai Markmur is tax at company level , not group level. There may be some subsidiary companies earning more than $100m, but in the Group overall the tax increase is much smaller.

He just got the fact wrong why CPO Charge way way above historical price level !
He totally ignorant and simply bluff why CPO crash in 2009 amid Lehman's collapse! What a shame.

What kind of analysis from someone long enoughin the market ! very very shallow indeed .

@ccwong, you are right to say that bull run has not even started. Historically plantantion traded at 15-25x PE. Based on forcast earning FY2021, plantantion prospective PE is only 5-8X ! This only possible in Malaysia . Malaysia Boleh!

Gear up for very robust Q3 earning reporting which is in this month!
Bear in mind that CPO is still well above $5,000 , a historical high level.

I don't think there is any significant impact on plantantion even on the big one ..

National Budget Office director Datuk Johan Mahmood Merican said the government is committed to ensuring that the utilisation of Cukai Makmur was transparently disclosed given that it is intended as a one-off tax to help support some of the increased requirements of COVID-19 health crisis.

"Our tax system is actually based on the company level. We do not look at the groups of companies as they will be taxed at an individual company level. In terms of utilisation, by law, all taxes go into a consolidated fund," he said on the BFM Radio’s Breakfast Grille programme today.

National Budget Office director Datuk Johan Mahmood Merican said the government is committed to ensuring that the utilisation of Cukai Makmur was transparently disclosed given that it is intended as a one-off tax to help support some of the increased requirements of COVID-19 health crisis.

"Our tax system is actually based on the company level. We do not look at the groups of companies as they will be taxed at an individual company level. In terms of utilisation, by law, all taxes go into a consolidated fund," he said on the BFM Radio’s Breakfast Grille programme today.

National Budget Office director Datuk Johan Mahmood Merican said the government is committed to ensuring that the utilisation of Cukai Makmur was transparently disclosed given that it is intended as a one-off tax to help support some of the increased requirements of COVID-19 health crisis.

"Our tax system is actually based on the company level. We do not look at the groups of companies as they will be taxed at an individual company level. In terms of utilisation, by law, all taxes go into a consolidated fund," he said on the BFM Radio’s Breakfast Grille programme today.

National Budget Office director Datuk Johan Mahmood Merican said the government is committed to ensuring that the utilisation of Cukai Makmur was transparently disclosed given that it is intended as a one-off tax to help support some of the increased requirements of COVID-19 health crisis.

"Our tax system is actually based on the company level. We do not look at the groups of companies as they will be taxed at an individual company level. In terms of utilisation, by law, all taxes go into a consolidated fund," he said on the BFM Radio’s Breakfast Grille programme today.

I doubt so . Tax is always at company level .

I think it is just a knee jerked reaction. The dust will settled in 1-2 days. Cukai Makmur is most misunderstood. The higher tiered rate at 33% doesn't mean company will pay 9% more . Most companies are structured into multiple subsidiary companies either by business unit , regions , country or equity JV. Effectively, only subsidiary companies generating more than $100 m PBT will pay more . In the overall to the Group , the impact is well below the 9% increase .
The most affected are the big corporation in banking , O&G, telecommunication , gloves or corporations with high concentration in one entity .

Cukai Makmur will only marginally affect Mnrb. The business is basically split into 3 subsidiary companies ie Reinsurance,. takakul general and takaful family. The 3 subsidiary companies collectively contribute exceeding $100 mil profit. Only Reinsurance will exceed $100 mil PBT when it performs well . The other 2 units shall earn less than $100 mil each in 2021 and will not be affected.

That's not my intention. No apology is needed. I just thought I can learn something that I am ignorant about .

Stockfreak,. In Taann's forum you already said 25% of Taann's profit will 'kena' cukai Makmur . You are unsure now ??

@ Stockfreak , can you show us your calculations how you get the 25%? We hope to learn from you .
-------------------//--------------------------------
Stockfreak. :Around 25% of profit will be affected by the new tax.

If the stock price gets a 25% discount, it is a good buy.

I top up Taann at $3.15 .

Better don't invest in stock and don't have to worry about paying taxes . Hahahaha..,

Dividend payment is after tax. Capital investment and loan repayment are balance sheet items and have no bearing on tax .
In any case , Bplant will not be affected by the 2 tiered cukai Makmur although it's group profit exceed $100 m for reasons already explained.

Owners and shareholders are reaping huge profit , some at historical high , for this years. As you make so muchore money , the taxable amount is higher . I think that's fair .
Many still don't see that the 2 tiered cukai Makmur will not affect most plantantion group for reason already explained above.

Fully agreed ! It's the market sentiment issue . Good opportunity to top up on price weakness

@ treasure hunt, you are exactly correct !
Windfall tax at existing rate : 1.5% x 350,000x (4,500-3,000) = $7,875,000.00
Windfall tax at new rate : 3% x 350,000 x (4,500 - 3500) =$10,500,000.00
The difference is $10,500,000 - 7,875000 = 2,625,000.00
The increase of $2.625 mil is very minimal .
People including the analysts fail to see that the impact of higher rate is mitigated by the threshold price increase .
Plantation in WM benefited from the change .

All the small and medium size plantantion are not affected by cukai Makmur. It has minimum impact even on the big guys like because the businesses are traditional splits into many subsidiary companies and seldom a subsidiary company of the plantantion group make more than $100 mil PBT . Tax is at subsidiary companies level .

The windfall tax change ( threshold price increase by $500) is beneficial for plantantion in WM. It is slightly negative for plantation in EM due to.tyevrate increase from 1.5 to 3%. However, the effect of rate increase is mitigated by the threshold price increase. In the overall, minimum impact to plantation bottomline.

https://newswav.com/A2111_Nla08j?s=A_lfPUYck
$101 bil disbursed under the special covid withdrawal by members . That's why EPF has to cash out from even very profitable counters. For 2022 , the special pendemic withdrawal is over ( also most members now left with nothing to withdraw). EPF doesn't have to dampen the market anymore .

@MuttsInvestor, that one way to go about saving almost $40 mil. That sum is enough to pay additional 2 sen special dividend. Hahaha..,
May be Bplant should step up monetising more development land to take advantage of the waiver in 2022.

I think Taann will not be affected by cukai Makmur. Because the group profit are generated from 17 subsidiary companies in oil palm cultivation and milling , 10 companies in plywood /timber section. Each subsidiary companies PBT is likely to be below $100 mil.

From the company's announcement $39.48 mil for RPGT has been budgeted for kulai young estate disposal. Since SPA is 28/9/2021, the company will not enjoy the RPGT waiver unless exemption granted by IRB.

If I am not wrong , company is subject to 10% RPGT for disposal 6 years and above under existing law. Removal of RPGT at this threshold help to save a lot of money for Bplant who will make huge gain on disposal of kulai young and subsequently plantantion in sarawak. Correct me if I am wrong .

Bplant consist of the following subsidiaries Companies which collectively contribute to the group profit of may be $200 mil this year. As corporate tax is at each company's level , I suspect, Bplant is not affected by makmur tax. Likewise, most plantations are structured this way .
Boustead Telok Sengat Sdn Bhd
Boustead Eldred Sdn Bhd
Boustead Solandra Sdn Bhd
Boustead Agency and Consultancy Services Sdn Bhd
Boustead Rimba Nilai Sdn Bhd
Boustead Emastulin Sdn Bhd
Boustead Gradient Sdn Bhd
Boustead Trunkline Sdn Bhd
Boustead Pelita Kanowit Sdn Bhd
Boustead Pelita Tinjar Sdn Bhd
Boustead Pelita Kanowit Oil Mill Sdn Bhd
Boustead Estates Agency Sdn Bhd
Bounty Crop Sdn Bhd
Boustead Life Sciences Research Sdn Bhd

most listed plantation group including Bplant Bhd consist of a numbers of smallers subsidiary companies. The accounts of the subsidiary companies are consolidated to group level to be reported on.qtrly basis to the market/Bursa . Each subsidiary company is a legal entity by itself .

Is the cukai Makmur imposed at company level ( corporate tax is imposed at company level anyway) or it is applied at group level ?
More details are needed to aases the impact .