I am happy to see short term UP investors being flushed out.

United plantation hv plantation(upstream) and refinery (downstream) business, the management did say they expect the refinery loss will revert in the coming quarters.
Its good and bad model as during palm oil down time, their refinery will compensate their upstream business and vice versa. Those new investor donno abt this will be surprised n burnt.

yfchong you are still holding? Sell earlier is better with this horrible management. I sold all of my shares after the QR

Ideal pe is 12, will down 75% more.

target price - RM 0.9

Sherlock, no they don't manage their timber business well. In fact, pretty bad, lumber price has been top in q1 2018 at 500 USD, while their monthly log production hit 85,000 in March, yet they said it is due to lack of 'quality' log, they still lost 17 million in lumber. This is unacceptable and something is fishy.
After holding and average down for 2 years, I have offload a lot this morning thanks to some people who bought in the beginning. Lost a ~4% but its okay. I can't trust the management anymore.

Fierce competition, cost of raw material hikes, high admin expense, PE is still 38, at least will drop 40% further

I only look at per share data, to me it's more important. But I am just like you , have both counters, I like both of the management teams

@benson85, not true, Favco's cash portion is not more than MPI, its RM1.52 per share.

Mpi netcash is RM2.66 per share. Where would you find such a cash rich company in Bursa?

I din know wtk is harapan stock

Tkt66, USD and yes per cubic meter. Lumber future.

lumber future is now all time high ($530) in the history (It was close to $500 during 1990s), I really don't understand why no one buying all the timber stocks.

Will extend drop to 10 sen

Your Sarawak boss Abang keeps raising the log/timber industry tax and fee, probably seeing lumber future hikes like crazy in the past 6 months.
I have to agree that WTK have potentials on palm oil. However, I think they need to better organize and plan on their Singapore manufacturing business. It is not growing at all and while they own some precious land over there, why not expand over there? If not just sell it la, it worth tonnes of dollar.

time of reversal.

yfchong, there is a lot of uncertainty, the biggest one is palm oil price. I would conservatively estimate an 8% profit margin from that.

I know some of those so called sifus who are receiving money and have 'classes' have karex in their portfolio and their students who paid hundreds follow them to buy this stock, all go to Holland together lol.

Please don't talk much but sell.

Those who sold earlier painfully are simply owned by the institutions lol

I was too late to queue more, gosh

Profit before tax - 3.84 million! WOW
As a long time share holder, it has been really a while since the last positive profit before tax.
Couple highlights.

1. Finally dumps Oil and Gas. Impairment loss of 160 millions results in reduction of asset.
2. Plantation making profit now! Wow, 0.4 million
3. Healthy cash flow, 32 million cash generated just in 4th Q of 2017.
4. Total cash in bank raised to 422 million from 390
5. 4th Q 2017 - Timber profit is 12.5 million, solid number. Highest than 3rd, 2nd and 1st Q of 2017.

Another thing, impairment loss just happens once, it is not going to cause any future earning loss. Impairment loss is just a decrease of asset, the decrease has been happening for many quarters till last November when they finally decided to ditch the oil n gas counter. Meaning that the 51 millions are all the money they have lost in since they went to o & g 4 years ago, it is not WTK lost 51 millions in the 4th Quarter of 2017.

One good example is, MBMR reported 200 million loss on 22-02-18. A lot of retail investors gt either heart attack and wanted to kill themselves as they think their retirement fund gone.
On 23-02-18, MBMR drops only 0.87%, why? It is because these loss was due to the impair adjustment of 177 million + 61 millions.

What is income? Income is what you are expecting to continuously making every month, every quarter (imaging your salary). What is the real financial 'loss'? That's the opposite of income.

The problem of Wtk in these 2 years is not about of its asset (just look at its NTA), so the reduction of asset due to impairment loss is really not big deal. The BIG ISSUE of wtk is it has not making INCOME in the past quarters due to its oil and gas division. Its now finally ditches the division and now we can expect INCOME on wtk.

To be honest, its rare that a company will be so transparent to provide such a clear financial expectations to investors and potential investors. I rather to have this then all of sudden see a headline huge loss quarter report later. Takeaway is, if you can't take it then sell and leave it. I am pretty sure lot of institutions are sidelined and wait for the selloff and jump in on Monday.

https://www.theedgemarkets.com/article/wtk-incurs-rm51-mil-loss-due-winding-whollyowned-unit

If you are selling because of they will report the loss of 137 million in the latest report and ignoring the 86 million 'gain' they will report in next quarter then you are probably the stupidest ever investor. I will happily collect from you as I know they will report whatever they make profit in plantation n lumber from 1st of Jan till 30 of Mar plus this 86 million impairment gain. Easily 100 million earning next quarter

Yes, are yfchong and smartag not reading the announcement at all? The impairment loss has been announced long time back in december. Now its just how they make the accounting, report 137 million lost in 4th Quarter 2017 and report 86 million gain in 1st Quarter 2018. If you do the math its still 51 millions impairment loss. This has been priced in since the announcement and should not be a surprise.

After the decomposition, oil n gas will no longer causing the group to lose money in the future per announcement.

Dow Jones drops 1100pts, today drop till 0.5

I have a spreadsheet recording WTK's every month production and my own tracking on lumber future price and palm oil future price.
Lumber future in 4th quarter is 15% higher than 3rd quarter, and according to Oct and Nov and if we assume Dec will be about the same production (~68000 m3), 4th quarter log production will be ~20% higher than 3rd quarter. This implies timber division will definitely have much higher revenue and profit than last quarter.
In their 3rd q quarterly report, they already mentioned their 40 million palm mill is ready and expected to contribute to earnings in the coming quarter. Thats why to me I am positive to WTK now as previously the only concern is oil and gas losing streak.
Previously's family feud and oil and gas have totally beat up WTK and they shall turnaround from this point.

yfchong, maybe but I think WTK's current price already have it priced in. Dumping oil n gas segment is a plus for WTK.

I think per their announcement on 28th, it will result in pretty big losses in the coming quarterly result.

No suddenly... chopping off their oil n gas is a great thing to wtk

Finally selling away their oil n ga division

@beso,
I agree partially with you. If you consider the recent hike of the timber premium rate from 0.80 to RM 50, long term they need to diversify the business. Plantation of palm oil was a great move. Entering oil n gas could have been a great move as well, just their timing was horribly wrong. They entered when the oil price was peak n it was the ending of that oil bull run. Its all about timing and now it is up to them to decide want to painfully maintaining the oil n gas business till the price back to good time or just sell away.
I think share holder also the same, they have multiple problems like family issues and oil n gas at the moment but you cant deny their base n asset, they have cash, the palm oil division gonna contribute.

Who's Terbaik king lol?

Silver lining in the report, palm oil division will contribute profit in the coming quarters, that's consistent with the monthly production report, also lumber division is doing good since main export customers base japan n India are enjoying good economics.
Oil and gas beats wtk down so much and it will continue to haunt them

Buy more die more.

One thing I don't understand is wtk always have to wait till last day only release QR.

No matter how's the lumber division doing, as long as oil n gas division have no business, it loses 10 million like last quarter. That's fixed.

As what Buffet said, revenue is more important. I have already mentioned above, value investors will add in now

My 2 cents.

Forex loss is pretty common for a big MNC like CBIP, if you dig further into CBIP's different segments of business, it is actually doing good.
I am comparing the revenue as to me it is more important.
Palm oil engineering and process (revenue: 70.5 million vs last quarter 97 million) are bit slowing down compared to last quarter. This is understandable considered the palm oil price drops quite a bit.
Palm oil plantation - Relatively much smaller portion since the trees are still maturing ~4 million for 9 months

Retrofitting special purpose vehicles
Obviously this is the game changer, this quarter the revenue is DOUBLED (101 millions vs last quarter 50.1 million) of last quarter. I believe the company is working very hard to diversify the business from palm oil processing and switching the focus to this special purpose vehicles area.

Pros
1. The palm oil price is at one of its lowest point, I expected it shall rebound sometime.
2. CBIP's plantation's palm oil tree is maturing (See annual report in 2016)
3. The exponential growth of special purpose vehicle retrofitting

Cons
1. Ringgit continue to appreciate will further cause forex loss.

With the points above, I personally will continue to buy in CBIP's share as I am really looking forward to the SPV retrofitting and I expect the palm oil price to be coming back soon. And yes, the only risk is on the foreign exchange.

People, go read CBIP annual report 2016, page 170 to 180..
Effects on Profit After Taxation (2016)

United States Dollar/Ringgit Malaysia:
- strengthened by 5% 3,423
- weakened by 5% (3,423)

Indonesian Rupiah/Ringgit Malaysia:
- strengthened by 5% 6,864
- weakened by 5% (6,864)

Two main issues are the appreciation of ringgit vs USD and Rupiah, which means Rupiah has been weakened when compared to Ringgit. If you compare MYR/IDR on 1st of July till 1st of October (Q3), it has risen from ~3100 to 3200, which translates to about 3.2%, it is about 4.4 million Forex loss.

Similarly, USD/MYR has been weakened since July 1st (4.3) till October 1st (~4.2), which translate to about 2.4%.,it is about 1.7 million of Forex loss.

Roughly, just this quarter they have about 6 million ringgit loss due to ringgit appreciation.

In the quarterly report saying there is 17 million ringgit FOREX loss for the financial year (till now 9 months), this means first and second quarter combined, CBIP have ~11 million forex loss.

Its just forex loss, mainly due to appreciation of ringgit I believe.

Calvintan, without profit from the oil n gas sector like last quarter, wtk won't go anywhere. Asset won't make you money unless you sell them. By the way, wtk most valuable asset is nt the land in lumut but the 22000 sq ft freehold land n warehouse in Tagore lane. Guess where is it?
Singapore. The value is around SGD$22~25 MILLION, which is around 70 million ringgit.

http://www.commercialguru.com.sg/listing/19863499/for-sale-tagore-lane-rare-freehold-corner-landed-f

Dude, 1 billion = 100 million *10.

How to make money? Heavily depends on Petronas and Oil and Gas segment alone already lost 21.7 million in first 6 months. Plantation palm oil also still losing money. They should sell the oil and gas division to somebody else and just focus on their current lumber, plantation and manufacturing. Anyone attended the AGM this year and did anyone ask management anything about oil and gas sector?

Whoever buying must be never read the quarterly report. Mitra is running out of CASH (40 millions compared to last quarter 58 millions, cash is decreasing every quarter), theyhave 237 million SHORT TERM DEBT + 31 million long term debt.
Jesus, RM 270 millions debt

If I were ever go to their AGM, I will ask the management at their face why don't just sell the stupid oil n gas business. What is the point to keep it and lose every quarter.

Crude oil drops 3% , Kim Jong Ung fires missiles to Japan. PetronM and stock market GG today

Where areyour sifu David, xiao yao zi, sumato etc etc. When Petron Phillipines result out earlier this month already gave you the hints that PetronM won't be doing good but you all follow the so called sifu to the cliff. Real investors won't tell you to follow if there is a cheap stock as he/she would like to collect as much as possible and earn.
This quarter without the one time gain it is just 19-21 cents EPS, means PetronM cannot consistently provide >40 EPS every quarter. That's why all institutions run and sold except you all who listen to those sifus LOL.

Thats all, it won't go back to 9 in short term.