Would be happy to see IDR to reach 12,000!

See how resilient IDR is!
http://www.bloomberg.com/quote/USDIDR:CUR
Good for MKH's debts in USD.

http://www.bloomberg.com/news/articles/2016-05-04/indonesia-growth-fails-to-pickup-in-setback-to-jokowi-reforms
But the IDR remains resilient after this news. Good sign!

Nothing going on. A fellow decided to sell MKH shares has instructed his broker to do so and coincidentally a fund manager, having an account in a securities firm that the broker is in, finds its a value buy at this price level. There you go a cross transfer of 1,000,000 shares today.

http://www.theedgemarkets.com/my/article/malaysias-april-1-30-palm-oil-exports-fall-56-mm-its

Earnings sustainable? Plantation should do better with higher CPO price and higher sales quantities. IDR gained against USD by 4% in Q2 compared to 6% in Q1. Decline in unbilled property sales is expected due to fewer launches which should reduce property earnings visibility. EPS in Q2 to be around 10 sen which is quite decent.

Jakarta. Indonesia's exports of palm oil and palm kernel oil in March fell 24 percent to 1.74 million metric tons from the previous month, the Indonesian Palm Oil Association (GAPKI) said in a statement on Tuesday (26/04).
In March, Indonesia exported 429,910 metric tons of palm oil and palm kernel oil to India, 313,060 metric tons to European Union countries, and 62,890 metric tons to Bangladesh, the industry body said.
Production dropped to 2.32 million tonnes in March from 2.47 million tonnes a month earlier, while ending stocks in Indonesia fell to 3.02 million metric tons in March from 3.44 million metric tons a month earlier.
Reuters

Sell In May And Go Away?

4 main current property projects. It is unlike the past but the take up rates are encouraging.
- Saville Cheras
- Kajang East
- Saville @ D'lake
- Hillpark @ Shah Alam
This year to launch close to RM1 billion projects.

0442 GMT [Dow Jones] Malaysian palm oil futures jump in morning trade on Tuesday, rebounding from losses a day ago, as improving exports support the market. Malaysia's palm-oil exports during the April 1-25 period are estimated to have risen 0.4% from the previous month to 889,944 metric tons, cargo surveyor Intertek Agri Services said Monday. "Palm oil shipments from Malaysia showed rising export demand, even with an export tax in place," says a Kuala Lumpur-based trader. The palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange rises 11 ringgit to trade at 2666 ringgit per ton. It settled at 2655 ringgit per ton on Monday. (vibhuti.agarwal@wsj.com)

0231 GMT [Dow Jones] Fitch Ratings on Tuesday improved its outlook for the Asian palm oil sector as prices for crude palm oil increase, leading to higher operating cash flows and boosting firms' credit profiles. The ratings agency said its outlook on the sector remains muted, but improving with expectations that crude palm prices will be higher than in 2015 due to steady demand and lower production in major producers Indonesia and Malaysia. Due to extreme dry weather last year that hit crop production, industry analysts predict the first fall in output in 15 years in Indonesia, the world's top producer of the edible oil. An increase in domestic consumption will also boost global prices, Fitch said. One factor to watch will be crude oil prices, a drop in which could drag crude palm prices down again given the high correlation between the two, said Fitch. (sara.schonhardt@wsj.com)

0950 GMT [Dow Jones] The Jakarta Composite Index ends Friday up 0.2% at 4914.74, outperforming other Southeast Asian indexes, which are mostly down on a negative U.S. overnight lead. In Indonesia, banks are mostly up, helping support the index, while losers include heavy industry and a smattering of other sectors. Perusahaan Gas Negara (PGAS.JK) is among the gainers, rising 3.7%, while Bank Mandiri (BMRI.JK) rises 1% and Telekomunikasi Indonsia (TLKM.JK) gains 1.5% after reporting earnings. XL Axiata (EXCL.JK) and Vale Indonesia (INCO.JK) fall 2.5% and 2.3%, respectively. (jake.watts@wsj.com; @jmwatts_)

http://www.bloomberg.com/news/articles/2016-04-21/commodities-make-a-comeback-as-bad-weather-meets-chinese-demand

The Executive Chairman of MKH said the impact of El Nino is expected to be minimal to the plantation which is located at the equator with adequate rain fall. But not sure how true is this statement which was made in January 2016.

Hottest Agriculture Trade Brings Record Volume, Fund Buying
http://www.bloomberg.com/news/articles/2016-04-18/hottest-agriculture-trade-brings-record-volume-fund-buying

Commodities Post Best Rally Since August as Citi Sees Gains
http://www.bloomberg.com/news/articles/2016-04-19/commodities-head-for-best-rally-since-august-as-citi-sees-gains

JAKARTA: Indonesia's crude palm oil (CPO) production is expected to fall to its lowest level in 13 months in March as a drought caused by an El Nino weather event continues to curb output, according to a Reuters survey.

March CPO production could fall for a seventh month in a row to 2.15 million tonnes, according to the median estimate in a survey of three industry associations and one of the country's largest planters.

That would be down from 2.30 million tonnes in February, and the lowest monthly output by the world's top palm oil producer since February 2015.

Indonesia's annual palm oil output is expected to fall to about 32.1 million tonnes this year, which would be the first decline since 1998, Indonesian Palm Oil Association (GAPKI) said last month.

"Production up to June will remain at low levels due to El Nino. Hopefully with the improvement in rainfall volumes through mid-year, palm fruit production will start to normalise and in August production can start taking off," said Sahat Sinaga of the Indonesia Vegetable Oil Industry Association (GIMNI).

Indonesia's CPO exports in March are expected to be 1.90 million tonnes, down from 2.01 million tonnes in February, the survey showed.

The Indonesian Estate Crop Fund Agency president director Bayu Krisnamurthi told reporters on Monday that the country exported 7.42 million tonnes of palm products in the January to March quarter.
Palm oil stockpiles are expected to drop to 2.59 million tonnes, from 3.63 million tonnes in February, according to the survey.

GAPKI said last month that Indonesia exported 2.29 million tonnes of palm oil and palm kernel oil in February. The group's data for March has not been released yet.

The Reuters survey comprises contributions from GAPKI, GIMNI, Indonesia Palm Oil Board and PT Sinar Mas Agro Resources & Technology Tbk, one of the largest listed palm oil companies. - Reuters

Simply the yield does not justify. Their businesses are capital extensive which drains its cash flow. Very positive if one is prepared to hold for long term 3 to 5 years. Can consider for your kids' investment. Malaysian's version of Nestle in the making.

紙包不住火!

The latest data from a US climate agency said there was a 60% chance that El Nino “sibling” La Nina – which in Malaysia causes heavier than normal rainfall – will happen sometime from October to Decem­ber.
http://www.thestar.com.my/news/nation/2016/04/17/too-little-water-then-too-much/

Permit ban by Indonesia will worsen CPO supply, food may become expensive
http://www.thestar.com.my/business/business-news/2016/04/18/permit-ban-by-indonesia-will-worsen-cpo-supply/

Malaysia's palm oil exports during the April 1-15 period likely rose 7.3% from the previous month to 484,271 metric tons, cargo surveyor Intertek Agri Services said Friday.

Open for Sale – Maple (New Launch), Meranti
Sold Out – Cherry III, Cherry I, Cherry II, Olive 8, Pines

The last phase double storey terrace 490 units Maple is undertaken by Panahome-MKH JV.
http://www.hillparkshahalamnorth.com/masterplan.php

Growth in supply capped?
http://www.theedgemarkets.com/my/article/indonesia-issue-moratorium-new-palm-oil-concessions

I love QL. It is another Nestle in the making. Barrier to competitors are high. Solid business model and inelastic to up and down in economy. But will only consider when the price is below RM4 which will then make the yield more attractive. Don't think the price will move a lot as it is already very rich in valuation.

One will be getting more anxious of not getting a slice in MKH. Assets in MKH are getting much more valuable and attractive.
- Global central banks are easing. Singapore just did this morning. Good to commodity prices with weakened currencies.
- Yesterday China showed good data, better outlook. It means steady and growing demand.
- World bank expects Indonesia's economy to expand steadily this year. IDR will be resilient against USD.
- Crops output are in 'damaged control' modes over the extreme weather conditions.

Investors seem to dislike recent corporate move. QL still rich in its valuation.

2007 marked the year MKH diversified into palm oil plantation.

Public Bank which has a stake close to 10% would continue to hold on. The stake which was acquired in 2007 costs RM16 million (my guess only because during 2007 the share price was hovering less than RM1) is now worth RM115 million. This has not taken into accounts the dividend payment over the years.

hahaha ...

La Nina can also roil agricultural markets as it changes weather. More rain could fall across Indonesia and parts of Australia and Brazil. At the same time, the U.S. Great Plains, Rocky Mountains and Florida could get less. The previous La Nina began in 2010 and endured into 2012.
http://www.bloomberg.com/news/articles/2016-04-12/la-nina-odds-strengthen-to-50-as-weakening-el-nino-seen-ending

Good MKH value is now just reaching its book value!

Both MKH and Matrix Concept are focusing on affordable housing development but like to believe that the MKH's business model is more sustainable with plantation assets and stable and growing property investment assets.

It's never a good time or bad time if you know there will be a better time.

Discerning buys will continue to take place from now till Q2 results in May 2016. The value gap between MKH (RM1.15 billion) and Matrix Concept (RM1.42 billion) is getting narrow when MKH is getting more attractive.

Investment is most intelligent when it is most businesslike ... Benjamin Graham
Focus on the future productivity of the assets you are investing in.
MKH's businesses are all land based!

Another right thing to do by the Indonesia government.

JAKARTA (April 11): Indonesia is considering cutting the corporate income tax rate to 20% from 25% in the upcoming revision to the income tax law, the finance minister told lawmakers on Monday. "We are still doing our review, but 20% looks adequate," Bambang Brodjonegoro said in a meeting with the parliamentary commission overseeing taxes. Last week, he said the government planned to also cut income tax rates for individuals, but did not disclose details. The current income tax brackets for individuals range from 5% to 30%. He did not give a timeframe when the government would propose changes to the income tax law to parliament.

*DJ Malaysia April 1-10 Palm Oil Exports Down 2.0% -- Intertek
*DJ Malaysia Apr 1-10 Palm-Oil Exports 320,990 Tons -Intertek
Still a decent figure!

http://www.theedgemarkets.com/my/article/malaysian-march-palm-oil-inventory-falls-1314-exports-surge-mpob

March 2016.
Malaysia's palm oil stocks dropped 13% to 1.885 million tonnes. Production was 1.220 million tonnes compared to 1.495 million tonnes last year's March.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5053641
http://www.bursamalaysia.com/market/listed-companies/company-announcements/2862617
http://www.bursamalaysia.com/market/listed-companies/company-announcements/2927025
This same party has been buying shares from the major shareholder of MKH.
It seems that this party has lots of confidence in MKH. This party to bring more value to MKH?

Major shareholder sold substantial number of warrants via direct deal. Why now when the price is on uptrend and company is looking to achieve higher profit? Could it be ...

0217 GMT [Dow Jones] India's edible oil imports for the year ended Sep. 2017 will rise modestly to 15.5 million metric tons from 15 million tons in the current year, says the U.S. Department of Agriculture in a note. However, "tightening global palm oil supplies will limit palm import to 9.8 million metric tons, with soft oils rising to fill the gap." It adds however that palm oil will continue to be the largest consumed edible oil because of its competitive prices, versatility in blending with other others, and wide applications across food and non-food sectors. (lucy.craymer@wsj.com;Twitter: @lucy_craymer)

MKH (market cap of RM1.13 billion) is getting more attractive than Matrix Concept (market cap of RM1.45 billion). The former has more property land bank and higher unbilled sales. For believers of palm oil plantation business, you'll fall in love more with MKH.

Japan, Indonesia, Thailand, Singapore and China. That's how MKH's name gets promoted through alliances with Panasonic.

PanaHome MKH Malaysia perkuat posisi pasar di Malaysia dengan meluncurkan komplek hunian mewah http://www.antaranews.com/berita/552520/panahome-mkh-malaysia-perkuat-posisi-pasar-di-malaysia-dengan-meluncurkan-komplek-hunian-mewah

PanaHome MKH Malaysia ยกระดับตลาดที่อยู่อาศัยมาเลเซีย ผ่านธุรกิจก่อสร้างและออกแบบครบวงจร
http://www.thaibusinessnews.com/readnews.aspx?nid=bca2686c6445904b1604313533fc2a83

パナホーム、ＭＫＨとプレキャスト住宅事業推進：労働力不足の建設業界に寄与強調［建設］
http://nna.jp/free/news/20160331myr003A.html

PanaHome MKH Malaysia憑藉建設與居住設計新業務為馬來西亞的住宅產業創造附加價值
http://times.hinet.net/news/17948502