Both of them are mainly in property development. MKH has another smaller but still significant plantation business. On the other hand, Scientex also has another significant manufacturing business although it is smaller than its property development in terms of profit.
You know why,because scientex dividend 22 cent mkh is 7 cent only,per value mkh rm 1 scientex 50 cent only ,now you can see small value is stronger than mkh, about many year dividend still not to increase,very stingy mkh
An objective comparison between both companies on the capital invested (for long-term investors) is the Dividend Yield(DY).
Scented- 3.26; MKH -2.41. So the former gave a better return on investment for the shareholder.Also can compare with the annual return on the deposit put in the bank.
The earnings in the company can either be distributed as dividends or kept in the company for further investment. If the management has good business growth plans, the further investment will generate more future growth and future profits.
If buying stock don't have patience to hold, then you can sell it and find another horse. Hold it patience, and you will be rewarded. Buy stock don't expect this will jump high immediately, but that day will come if the stock is fundamentally strong.
Plantation stocks are moving upwards now. A quick check shows that most of the plantation stocks are trading at PE between 15 and 40 times the preceding year earnings.
i am moving away from Steel, Tin stocks, O&G and focusing on plantation now... why?
(1) the world population will continuously expand and demand for this cheapest cooking oil will always be there...the palm oil smear campaign had lost its arguments and people are realizing its even better oil than soybean oil...the price will soon be comparable to soybean's price.
(2) the land that had been relentless cleared in east malaysia and indonesia had come to a saturation point for planting further palm trees...meaning supply source is slowly becoming limited.
(3) you cannot find cheap land anymore....if you want to buy land for personal plantation purpose..i bet cannot find it cheaper than RM70K per hectare...look at thee price these companies are selling.
(4) O&G has huge upper limit on the price of Crude Oil (due to shale oil) just like palm oil has lower limit on its price due to biodiesel..
(5) Unlike all these steel companies, where they are dependent on raw material price, tariffs and selling prices...plantation's only major costs is free...the sunlight & natural minerals found from the soil and decomposing organic material of dead trees... Its like your costs are almost free..
even the laborers are being helped by machines which can harvest fruits from the trees...its just a matter of time - cheap robots will be introduced to harvest the fruits - they will work day and night for free with the fuel provided by Biodiesel from palm oil itself. If Japanese were ruling malaysia...this robots would have been here by now.
very soon one will never be able to afford to buy any land for their own..
PLANTATIONS IS THE ULTIMATE INVESTMENT for MALAYSIANS.. never lose your market share on this land bank. Price will only go up from now.....no returning back.
The Group’s new planned launches for 2017 with sales value exceeding RM1.0 billion include integrated high-rise development known as MKH Boulevard 2 which is located within walking distance to the Kajang KTM/MRT station, Phase 3 of Kajang 2 Precinct 2 comprising 198 units of double-storey terrace houses, Phase 4 of Hillpark Home 3 comprising 79 units of double-storey terrace houses, TR Residence comprising 642 units of serviced apartments and 12 units of commercial retail lot located along Jalan Tun Razak in Kuala Lumpur and Saville @ Mon’t Kiara comprising 640 units of serviced apartments.
Ongoing 550-acre eco-themed township Hillpark @ Shah Alam North is also in line for subsequent launches, comprising double-storey terrace and single-storey terrace houses.
The Group’s self-sustaining 18,000-hectare oil palm plantation with CPO mill running at 90MT per hour will continue to contribute positively to the Group’s earnings and profitability. We forecast improved CPO yield as most of the oil palm trees will reach their prime age in year 2017 and 2018.
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....
enid888
581 posts
Posted by enid888 > 2016-12-29 13:52 | Report Abuse
Both of them are mainly in property development. MKH has another smaller but still significant plantation business. On the other hand, Scientex also has another significant manufacturing business although it is smaller than its property development in terms of profit.