May FFB numbers are up 28% yoy, CPO production up 14%. Still holding strong to double digit % growth. The numbers are the best one can hope for without being too optimistic ;) 2Q is looking stellar
this counter isnt that bad as compared to other peers, right? who no one is interested in it? is it due to lack of liquidity as more than 80 percent owned by TH and EPF.
newcomer123, mainly yes. Also they also haven't been able to establish a consistent profit growth. It takes time to turn around investor confidence - we haven't seen a lot of successful turnaround stories for GLCs. BUT I believe EPF has been accumulating (including today) - we'll find out when/if they release a bursa announcement in a few days time!
I think so too, especially if you're bullish about the 2Q results for the plantation sector. I don't really pay a lot of mind to the dividend because it's just proceeds from land sale (although, expect equal or more dividend this year and 2018 because they are looking to dispose 400mil of assets)
cpo prices now are better as compared to last year despite productions are growing. so we may see better earnings for second quarter. among its peers, do you think th plant is undervalued at the moment?
I am quite confident that they will have better earnings for 2Q, barring any unforeseen circumstances i.e. an FGV fraud-type situation. Their monthly production numbers already show double digit growth. Value-wise, it has been beaten down quite a bit, so at the moment it looks to have a better turnaround story compared to most and thus a greater upside...
The latest MPOB June statistics: CPO exports: 1.38mil (-8% mom but +21% yoy) - I see this as positive news for Msian coffers CPO production: 1.51mil (-1% yoy) - not great news. I'd be keen to see how similarly affected is thplant's production numbers. CPO inventories: 1.53mil (lowest in more than a year) - this will be a boost for CPO prices
June monthly production stats are out. -8% yoy for FFB and -13% for CPO. It looks like June has been hit harder than expected. overall 2Q 2017 looks so-so, higher selling prices and production numbers but only by single digit %. We'll probably see single digit % profit grown yoy, unless the mgmt can spring a positive surprise with some cost efficiency savings....(but with GLCs you'd probably want to temper your high expectations)
This share is so undervalued, especially as the management appears to have started paying dividends again, so far this year 7.6 cents ! ... should easily reach 1.65.
"The second report against Ismee, Hazlina and Rifina relates to misrepresentations and withholding of material information involving TH’s 2012 sale of 95 per cent shareholdings in PT TH Indo Plantations held by its two subsidiaries, namely TH Indopalms Sdn Bhd (THI) and TH Indo Industries Sdn Bhd (THII), to PT Borneo Pacific (PT Borneo) for US$910 million.
PT TH Indo Plantations own a total of 83,000 hectares of palm oil estates in Indonesia.
TH Plantation is not the only plantation companies that posted bad results in the most recent quarters. If you go through the reports most (if not all ) plantation companies are effected by the low CPO price in Jul-Sept period.
In terms of valuation all plantation stocks are currently trading at high PE multiples (for those that still managed to record profit) or in TH Plantation case negative PE. This is reflective of the downturn cycle of the plantation industry. Don't think that the industry will reverse their down cycle anytime soon given the general global economy is also expected to slow down.
If you are interested in the plantation industry then you should try to look at other companies first (at least until the TH Plantation is really on a stable footing). You will notice that most plantation stocks have fallen but PE valuation is still high. As i mentioned earlier, this is normal given that the industry cycle is currently at the bottom as reflected by the CPO price. It is better for you to do a PE calculation using an average 5 years PAT to take into account the cyclical nature of the industry. With this in mind you need to have a slightly long term investment horizon when buying into oil plantation companies.
However, if you are interested in the company due to the fact that the company is currently trading at below its book value. Then it is also advisable for you to look beyond the plantation industries. Given the current market condition, there is actually a lot of companies that is currently trading at a discount to book value (most of the property development companies for example).
I would recommend you look at MBMR.
The company is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.3x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year 4Q17. And FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19.
KUALA LUMPUR: Lembaga Tabung Haji is zooming in on its investment in the 52% stake held in Trurich Resources Sdn Bhd, which owns some 42,000ha of oil palm plantations in Indonesia.
Tabung Haji and FGV Holdings Bhd jointly bought Trurich for RM600 million in 2009 and assumed debts of over RM700 million, sources say. It is unclear from whom they bought Trurich. The plantation group had been making losses for at least the last five years to 2016, based on data from RAM Credit Information Sdn Bhd.
According to sources, Tabung Haji and FGV will likely have to write down their investments, and police reports are expected to be lodged as well. FGV’s shareholding in Trurich is held through a subsidiary, Felda Global Ventures Kalimantan Sdn Bhd.
No worry kompeni rugi besar, dividend keep payout out big big coz got divine intervention. But not to shareholder la. Shareholder can only lick the wound
Shpg22...You are right. You still.holding anything ? Should we still.hold?' All the funny things going in company! Hmmm....susah. Little I have getting heavy! When we gonna see the light for this company??
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....
Justacomment
23 posts
Posted by Justacomment > 2017-06-20 17:42 | Report Abuse
May FFB numbers are up 28% yoy, CPO production up 14%. Still holding strong to double digit % growth. The numbers are the best one can hope for without being too optimistic ;) 2Q is looking stellar