KFima coming QR should be good. 3 strong reasons: 1. Palm oil price, CPO is in the range of RM5,000-RM6,500 for most the months (Jan-April 2022) PLUS more palm trees are maturing for this Quarter. 2. Economic activities have resumed to normal. No more MCO. 3. Directors are buying KFima shares non-stopped. KFima also buying back its own shares from less that RM2/- to RM2.20. Since Directors are able to access to all financial/operational information, it is logical to deduce that coming QR is good and will also be paying good dividends to shareholders to celebrate 50 years anniversary of KFima.
According to RHB 20 Jewels 2022, Kumpulan Fima is one of those chosen. Reasons given are: 1.Higher CPO price along with improvement in output for FY2022-2023. 2. Expansion of Bulking business in Port Kelang to capitalize on increasing demand for liquid bulking. 3. Note worthy to mention dividend payout for FY2022 is expected to exceed 20 cents per share whereas I only estimated only 15cents. 4. Cash in hand and at Bank is closed to RM1.20 per share giving KFima easy way to expand business ventures or pay dividend.
KFima 60% subsidiary Fima Corp has released its QR, with 142% increased profits and declared 10% dividend instead of 7.5%. The main reason is better output and increased in palm oil price.
With 300mil cash in the bank, earning interest merely 3mil. Exactly like China counter with huge cash pile but need to take additional 50mil loan. Something to think about.
To "i4 value.asia", your book is indeed very insightful and with detailed analysis accomplished by charts, photos and diagrams. Very informative and I enjoyed reading it. thank you.
During the AGM, the director said they have invested the money in PNG at 1.25% p.a. PNG is a riskier place to invest than MY, and yet they make such a decision.
bought in a few at 1.82 today. bulking sector looks promising. just with the EPS of first 2 QRs and recent dividend payouts, at least 12 sen dividend seems to be locked for Financial Year: 31-Mar-2024
I am a fundamental investor that relies on historical information to analyse and value companies. Whenever I tell this to investors, they will often cite the well known disclaimer used by all financial advisers – past results does not equal future performance. When I look at a company’s performance, I know that it is due to the “economic and other resources set-up (strategies, management, funding, etc).” that the company has. So if these result in a good performance in the past, there is a good chance that it will continue to do so in the near future. Don’t think in terms of a continuation of the past numbers. Think in terms of the continuation of the past set-up That is the reason why track record is important in my analysis. It gives me confidence that the company has the set-up in place to deliver good performance. Take the example of Rimbunan Sawit which had negative ROE yearly for the past 8 years. In contrast, here are many plantation companies (eg KFIMA) that had delivered positive ROE yearly for the past 8 years. So it cannot just be an external problem. I would think that unless there is some major change in the setup, the past = the future.
13,690 hectares (FYE2022: 13,056 hectares) of the oil palm are mature. Consistently and highly profitable company but less people attending to it due to its sluggish price movement. Somehow another big dividend is expected three months from now.
A decade ago, KFIMA manufacturing segment was the key driver for the group due to its supply of travel documents. Unfortunately it lost this lucrative supply contract and the group business suffered so that it did not achieved any revenue growth over the past 12 years.
But the Group had managed to offset this by growing the business in the 3 other segments – Plantation, Food, and Bulking. The returns with the current business profile have yet to reach the levels of that before the loss of the supply contract. But the Group is making progress.
As long as the company is allowed to operate independently without political interference, Kfirma should do well. Too many of such bad experiences in our country.
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....
Fabien _the efficient capital allocator
2,012 posts
Posted by Fabien _the efficient capital allocator > 2022-02-17 22:59 | Report Abuse
Rising tide lift all boats. even the "value trap" can move
Don't miss Oriental too