high palm oil price in world market will continue for few years at least ,or may be for long long time , due to Covid problem which causes labor shortage in many oil producing countries , e.g ,Indomesia, malaysia, US, Brazil and Argentine.China may import more palm oil , and buy less more expansive soya bean oil.
Sarawak plantation no where near SOP. SOP is an intergrated plantation company. When CPO hit 2900 3000 theu can still make 250M and above. Looking at this number. SOP is rank no 6 in plantatiom industry. So its about whether who want to drive this stock price
In a solid balance sheet position Undervalued. BUY! While SOP has revised down its FFB output guidance for FY21E, it is still anticipating better HoH output in 2H21. And SOP will likely continue to enjoy the high CPO ASP thus far in 2H21 given its minimal forward sales. We are keeping our earnings forecasts, and TP of MYR5.80 on unchanged 14x FY22E PER peg, its 5Y mean. It trades at just 8x FY21E PER and unadjusted EV/ha of MYR28,000 (near replacement cost). BUY. Briefing takeaways We hosted a briefing for SOP last week. Key takeaways: (1) SOP has minimal forward sales. It will continue to reap the benefits of high spot CPO prices presently; (2) FY21E’s FFB output target is now revised down to 1.25m-1.30mt (MKE: 1.32mt) from 1.40mt due to shortage of harvesters. This revised forecast translates to 1H:2H output ratio of 47- 49:51-53; (3) Overall, SOP is experiencing a 30-35% shortage in workers; (4) It has decided to stop its replanting plan for 2021 (2020: 419 ha) to capture the high CPO ASP; (5) SOP expects to be in a net cash position by year end (June-21: 6% net gearing); (6) With improving balance sheet and limited capex planned (FY21E: MYR100m-150m), it will likely establish a dividend policy soon to reward shareholders; (7) Downstream margins will be more challenging in 2H21 compared to 1H21. Major shareholder has further raised its stake to 46% SOP’s major shareholder, the Shin Yang Group, has further raised its stake to 46.4% in Apr 2021 (May 2020: 45.3%; Mar 2019: 43.3%) whereas the State Government of Sarawak has maintained its 2nd spot at 28%. SOP is clearly undervalued Although we doubt there is any impending plan to privatise SOP, the gradual accumulation of stocks by the major shareholder is a testament of SOP’s undervaluation. We believe the formulation of a generous dividend policy will help to re-rate SOP’s equity value over time. The market is currently attaching zero value for the property development potential of its 4,858ha Taniku Estate, located at the fringe of Miri city.
715 counters drop vs 339 counters up. widetec in 4 days increase 35% = take profit. Convert rubbish into money. SOP going into consolidation from now. (Fund are flowing out and going down trend, MACD dead cross, OBV down, RSI 9,14 down below 50% ). No matter angle you look at it SOP going into cold storage.
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....
calvintaneng
56,622 posts
Posted by calvintaneng > 2021-07-29 00:03 | Report Abuse
GOOD NEWS FOR SOP
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-07-28-story-h1568845602-MALAYSIA_JUNE_21_EXPORT_STATISTIC_SHOWS_THAT_PALM_OIL_AT_33_3_GROWTH_HA.jsp
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-07-28-story-h1568845602-MALAYSIA_JUNE_21_EXPORT_STATISTIC_SHOWS_THAT_PALM_OIL_AT_33_3_GROWTH_HA.jsp