currently land revaluation is not the driving force behind plantation stocks price surge.it is a bit far fetch for now. it is the corporate earning that matter most for now. The record high cpo price---6000 /tonnes, would contribute to large profit earning for plantations with well planted ,matured trees ,well fertilized ,on large hectarage, only problem now is labour shortage in east malaysia
Sarawak & Sabah labour & worker issue { harvester"s not as acute compared to their peers in Peninsula} Even Indonesia { Kalimantan} facing shortage of experienced harvester,. Most plantations rotate their workers from general work { eg. pruning work / p & d } to harvesting during peak period.
If you read 2020 AR. SOP short about 30% labor. They key thing is not about shortage. But the number of labor less than previous FY. However, they still manage to keep up the output. Simply bcos they acquired havesting machanism to overcome the shortage issue. I expect earnings surprise for Q4.
plantation stock holding steady despite quite big correction in KLSE. It's where you can take refuge from the possible Ukraine-Russia conflict and Fed interest hike. CPO will still do very well under such risks.
In 2019, SOP introduced an in-house “555 Target” with the goal to achieve 5t/ha (FY20: 3.3t/ha) of palm oil in 5 years with MYR5b in market capitalization. The ambitious target is aimed at sweating its assets by achieving optimum FFB yield and OER via best management practices to minimise the impact on the planet.
Geopolitical front Russia had invaded Eastern Ukraine Causing commodity future to shot up Plantation index fly almost 100 pt on opening bell Will this tension escalate into full blown War ?
What more to say about the stunning results. Q4 EPS of 36.44sen far exceed my expectation. FY2021 EPS of 89.44 sen is marvelous . PE based on today closing is only 6x ! Divdend is usually announced in end Apr/May.
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....
enning22
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Posted by enning22 > 2022-02-20 13:31 | Report Abuse
currently land revaluation is not the driving force behind plantation stocks price surge.it is a bit far fetch for now.
it is the corporate earning that matter most for now. The record high cpo price---6000 /tonnes, would contribute to large profit earning for plantations with well planted ,matured trees ,well fertilized ,on large hectarage, only problem now is labour shortage in east malaysia