"I just bought shares that went down the most in terms of percentages. You can say that I started blindly." OMG Mr. Koon get rich by luck. Beside the courage to take risk, luck is important as well.
Thank you for sharing Mr. Koon. So the benefit of 'luck' definitely your main investment success. 'luck' require a highly gifted 'EQ' in order to succeed in investment. No matter how high your 'IQ' is, if you do not have 'luck' or 'EQ' then you are doomed in investment.
Jacky Ching, What do you mean when you say any registration request? If you are talking about my investment seminar on 1st June, please read the announcement carefully and you will know what to do.
TQ Mr Koon for sharing yr investment style / strategy. Hope can attend nx seminar as I'm away on 1/6/2014! I'm impressed how well you accumulate yr wealth & not stingy when giving out scholarship!
You are right... absolutely correct. Since I live in Sabah...Iand I like to see with my own 2 eyes and hear from staff and management.... by visiting them.
Someone contacted me (kiasutrader@gmail.com) to register for the afternoon session for Mr Koon's seminar on Sunday 1 June using email username InvestKCL but the email address is not reply-able. Please re-submit. Thanks
The following is an extract from Kulim's 1st Q result: Revenue, FFB production and selling CPO price are all improved. But I cannot understand why the EPS is so poor. Perhaps one of the readers who is an accountant can explain to us.
Review of the Performance of the Company and Its Principal Subsidiaries
Group Results and update
The Group recorded revenue of RM830 million for the quarter under review compared to the corresponding period 2013 with revenue of RM715 million, an increase of 16.06%.
The Group recorded a PBT of RM91 million for the first quarter 2014 compared to PBT of RM33 million for the corresponding period in 2013, an increase of 178%.
Plantation Operation - Malaysia
The Group’s FFB production for the first quarter 2014 was at 177,399mt compared to the corresponding period in 2013 at 159,059mt an increase of 11.53%
The Group’s cumulative CPO production for the first quarter 2014 was at 59,964mt. This was 16.33% higher compared to the CPO production for the corresponding period in 2013 of 51,545mt.
Total FFB processed by the Group mills for the first quarter 2014 was at 287,569mt which was 13.62% higher compared to the corresponding period 2013 of 253,091mt. Total FFB processed was inclusive of crops purchased from outside the Group.
The Group’s OER for the first quarter 2014 was marginally higher at 20.85% compared to 20.37% for the corresponding period 2013.
Malaysian plantation operation achieved average CPO price of RM2,585 and PK at RM1,756 per mt respectively for the first quarter 2014 compared to RM2,475 and RM1,184 per mt for CPO and PK respectively for the corresponding period in 2013.
Plantation Operation – Papua New Guinea & Solomon Island
NBPOL Group produced 455,988mt FFB in the first quarter 2014 which was 12.54% higher compared to the corresponding period in 2013. Together with crops purchased from outside the Group, NBPOL Group processed 618,880mt FFB for the first quarter which was 10.3% higher compared to the corresponding period in 2013.
NBPOL Group’s cumulative CPO production for the first quarter 2014 was at 137,031mt. This was 12.5% higher compared to the CPO production for the corresponding period in 2013 of 121,758mt. NBPOL Group’s cumulative CPO production for the first quarter 2014 was at 137,031mt. This was 12.5% higher compared to the CPO production for the corresponding period in 2013 of 121,758mt.
NBPOL Group’s OER for the first quarter 2014 is at 22.14% compared to the corresponding period in 2013 of 21.7%.
NBPOL Group’s achieved CPO price averages of USD907 per mt for the first quarter 2014 compared to USD878 per mt achieved for the corresponding period in 2013.
Quick Financial difference Q1'14 vs Q1'13: - My 2cents summary: Even through EPS Q1'14 vs Q1'13 increase to 543% ratio (exclude one-time discontinue operation earn RM 339M), Net Profit margin is still very low vs revenue generated, with high PE ratio = 36.9 vs other same palm oil industry market.
The current price of Kulim is lower than the average price for the last 3 years and basin on this I have been accumulating it in the last few months. Although its 1st Q EPS is not so good, I believe it is very much undervalued. During the last 3 years they must have made some money and planted more area and also increase FFB production. I am looking forward when the management start develop their plantation land in Johore which must have appreciated a lot. I am sure one day they will develop properties for sale like KLK and IOI.
I hope some smart accountant or readers will tell me that Kulim is not a good investment for the long term.
Kulim's core business is in Palm Oil biz in Malaysia and overseas. Further catalyst for higher share price will come from: - increasing volume of CPO production and higher CPO selling prices in the future - announcement of new property development projects in its Johor plantation lands - New Oil & Gas servicing business in Pengerang Johor
Price downside is very limited as this level but the future price upside will be much more when the above catalyzing factors gain traction over time.
Mr Koon, I thought you owned Xingquan. Have you given up hope on China stocks listed in Malaysia? My opinion is their accounting book cannot be trusted.
IF we are re-rating plantation companies based on CPO price fluctuation, then how many times we have to re-rated it in a year if it fluctuates in a wide range?
Even so, can we wait for CPO price to stabilize above Rm3000 before we call for re-rating. IS it not too soon Now for re-rating as price just manages from Bottom half a year ago?
Having said that, i sure agree on long term perspective.
Kulim overseas operation in PNG is interesting. Sales in PNG is more than double that of Malaysia but its profit is only 1.6 time that of Malaysia. Could it be the drop in currency value of PNG or younger trees or something else ? Looks like the future of Kulim depends how the operation in PNG is managed.
Mr Koon, you use 70000 per Ha as valuation basis to come to conclusion that Kulim is under valued. But could it be because Kulim major planted area is in PNG which yield lower than Malaysia therefore a lower than 70K per HA should be used instead ?
pls factor in div paid out...Kulim paid out RM0.9094 of dividend in Jan 2013, the price hence adjusted from RM4.80 to RM3.79...not too much being depressed...
Kulim is already way overpriced It's mgmt also is quite the type which sleeping most of the time If they are not sleeping , maybe they are making a very bad deal or decision Better to buy smaller cap plantation in Msia as the big cap already way overpriced with limited upside For other countries can check out indo Agri or golden Agri
EV is market capitalization + debt + preferred share + Minority interest - CASH. Lower is cheaper Or better as EV is used for price calculation for takeover target and we want to pay cheaper price for good company.
Generally, from records of most plantation companies their cash level is increasing for past 5 years as such EV NOW is cheaper for cash rich plantation and well managed company.
It is general trend they keep cash for future expansion and re planting as they are growing bigger in size Now. It is interesting to see how this industry evolve in futures.
Mr Koon, as you are the Businessman, you are looking for deep value, Big deal, Big opportunity, Big jump in profit growth. Whereas I am looking for well managed companies.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
nsk82
196 posts
Posted by nsk82 > 2014-05-25 18:41 | Report Abuse
it is always inspiring to read your writings. Keep it going strong and long life, like Dr. M