What important is timber industry facing shortage of wood products and WTK is able to maintain log production level. Prices of logs and plywood keep increasing for the past few months. No worry on strengthening of RM.
Yfchong. WTK has dropped to ridiculousl level or price back to 10 years ago ....I pressed so many times BUY button. Good timber prices plus huge growth potential in CPO production. No worry much to buy at this level.
Price hit all time low but prospect is bleak so I don’t dare to buy. On the other hand, price hit all time low but its business starting turnaround so I simply close my eyes press buy batton.
The oil palm is young.... forest plantation abt to harvest.... plywood asp better now....... these r all plus points.... I am fr ikan bills grp.... no worry. I no estimate kau kau.. just conservative timber 32 mil, manufacturing 7 mil... oil palm... 6 mil I.e. Badly manage like NSOP... so work out eps 10 cts... pe 8x...... for this condition...
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.
Plantation segment has returned to the black after they started operating new palm oil mill. No more preoperation expenses due to setting up as incurred last year. Its 11,800 hectar planted palm oil will be maturing gradually in the next few years.
Timber segment will be contributed positively to WTK as asp trending upward due to shortage of logs. But it would be a liability to TAAN, Subur and Jtiasa in short term as they have slashed log production in the past few months.
We can ignore WTK other business segment since contribution don’t have much impact to its bottom line.
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.
too quick conclusion yesterday true is w/o the one off gain wtk is in deep shit avoid this counter KUALA LUMPUR: WTK Holdings Bhd swung to a net profit of RM63.18mil for the first quarter ended March 31, 2018, from a net loss of RM4.28 million a year earlier mainly due to a RM120.23mil gain on the deconsolidation of a wholly-owned subsidiary. Revenue fell to RM183.23mil from RM209.52mil previously as it recorded lower timber sales due to shortage of quality logs.
The Group recognised a gain on deconsolidation amounting to RM120,234,000 and recognised write-off of the allowance for impairment loss of RM35,273,000 in respect of amount owed from AMV. As such, the net effect of the above resulted in a gain of RM84,961,000.
sabah ban timber export recently and this should benefited sarawak timber counter,especially WTK.this was because WTK was the only sarawak timber company that able to sustain timber production for the past 1 year,while others like jtiasa and taann was suffered huge drop in timber production.
thats why WTK was the only timber stock in my portfolio at this junction.
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.
It's an unexpected lackluster QR due to timber segment shortage of quality logs for production and fulfillment of backlog orders. Hopefully, no more such funny reasons in next QR. WTK has turned into a net cash company 11 cents per share (deducted payable ) after de-consolidation O & G segment.
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....
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Posted by Up_down > 2018-04-03 19:16 | Report Abuse
What important is timber industry facing shortage of wood products and WTK is able to maintain log production level. Prices of logs and plywood keep increasing for the past few months. No worry on strengthening of RM.