HLG still insisting on using SOP valuation and not a word on the Kalimantan plantation in its latest report. Even the JV & associates were mentioned but not on the Plantation Segment. Why??
Is this segment omitted in HLG SOP valuation?
The Revenue increased to 44,573,000 from 30,607,000 YoY. An increase of 45.6%.
The company started planting in 2012 and has planted 13,400 hectares in total at the end of 2019. An average of 1,675 hectares a year.
With much higher CPO prices for the last Q and more young palms coming into maturity. I think the Revenue for 2020 will be 60-70 mil.
Utilisation of its oil mill will increase too and so does the profit margin.
There is huge potential in this segment, less than 25% of the palms are in peak yield atm.
What does this cpo price trend below tell U leh ??
Date Settlement Price RM 3 Dec 20 3332 2 Dec 20 3316 1 Dec 20 3347 30 Nov 20 3305 27 Nov 20 3338 26 Nov 20 3227 25 Nov 20 3285 24 Nov 20 3249 23 Nov 20 3326 20 Nov 20 3288
Ans; Rising CPO price and Rising Profit loh!!
Until Sept latest qtr result cpo average is roughly rm 2600 mah!!
December QTR we will be seeing conservatively Average Price Rm 3200, that is 23% increase in price n this increase revenue will all goes to the bottom line profit as there are no cost applicable to revenue generated from price increase loh...!!
Just imagine if Average palm oil price is Rm 2800, U already see super strong profit loh!! But now we are at above 3500 loh...!!
Can U forecast & project what will palmoil company potential profit at rm 3500 cpo leh ?
That means the upside of palmoil above Rm 3500 is still sustainable going fwd loh!!
"Soya Bean Oil {SBO} price premium over CPO currently stand at USD 195 per tonne. Consumers in India, Pakistan and other sub continents are price sensitive."!
Most of the analysts are optimistic that the current CPO uptrend is sustainable due to weak dollar + some other factors so we might experiencing a crazy bull run on plantation sector in year 2021. This surely leads CBIP to another level as of what management mentioned in their prospects. I believe FCPO to hit 4000 is achievable very soon!
As mentioned at the latest qr, the increase in the group’s revenue was mainly due to a new stream of revenue generated by the refinery segment as well as the increase in revenue by the palm oil plantations and special purpose vehicles segments. All segments will eventually back to positive since CPO price return to 8 years high.
CB INDUSTRIAL PRODUCT HOLDING BERHAD We wish to announce that PalmitEco Engineering Sdn. Bhd. (“PESB”), a wholly owned subsidiary of CBIPH had implemented a temporary stoppage for 14 days of its manufacturing facility in Telok Panglima Garang, Selangor from 26 February 2021 to 11 March 2021. This is done under the guidance of Kementerian Kesihatan Malaysia (KKM).
The temporary stoppage is not expected to have a significant impact on the revenue and earnings of CBIPH Group for the financial year ending 31 December 2021.
Considering the progress of the projects secured in hand, the Board is optimistic that the Group will be able to achieve satisfactory results mainly driven by the palm oil equipment and engineering segment for the financial year ending 31 December 2021.
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....
danchong
502 posts
Posted by danchong > 2020-12-01 09:57 | Report Abuse
The last SBB was 2/11/20.I noticed that the transactions volume has been on the raise since 12/11/20.
I think someone has started accumulating this share.