NPAT 1H 2021 is 4.9 sen per share . FY 2021 may be about 10sen. At 10x PE, it should worth at least $1. Net realizable asset value may be about $2/- per share if the assets are put up for sales .
Malaysia has put a cap on land for oil palm to 6 mil ha (5,87 mil ha used as at 2020). Indonesia has implemented a 3 years moratorium on new planting. There is great pressure on the Indonesian government to extend the moratorium indefinitely due to environmental reason . Consequently, AVERAGE CPO price will stay much high in the future amid stagnant /lower supply and in face of global warming threatening production (of other oil crops too). Oil palm plantantion will fetch a lot more due to scarcity of land. Existing plantantion companies which generates huge amount of free cashflow can only expand thru brownfield acquisition. M&A activity and privatisation will heat up in this sector .
Subur profit jump to 20m due to sky high palm oil prices… the upcoming quarter for cepat will be 15-20m profit, with the current profits , cepat is undervalued… looking to the future of 15-20m profit per quarter, this stock should be hitting limit up like subur soon… don’t miss cheap tickets… Goodluck
The production data just published for September looks solid. Coupled with record CPO price, it means that Q3 results will be impressive. Cepat cepat mari...
I am pleased to share the projected full year (2021) EPS and the prospective PE of some of my favorite plantation counters. The Projected EPS is based on actual 1H + Q3+Q4. Q3 EPS can be estimated fairly accurately as Q3 avg CPO prices is known and production numbers are mostly available . I also make the assumption that Q4 EPS is same level as Q3 for reasons that ASP Q4 seem to be even higher and labourers for plantantion sector are coming in to maximize crop recovery. Given that Nov/Dec is usually seasonally lower crops, but the higher ASP and labour availability should be enough to offset that, On above basis , the FY 2021 EPS and prospective PE based on yesterday closing share price as as follows:
Bplant. EPS 9.6sen , PE 7.1x THplant. EPS 16.5sen , PE 4.4x SOP. EPS 73.0sen. PE 5.3x MHC. EPS 20.9sen. PE 4.5x Cepat. EPS 13,9sen. PE 5.2x Swkplt. EPS 48sen. PE 5.2x Taaan. EPS 67.9sen PE 4.6x Hsplant. EPS 23.6sen. PE 9.3X.
Historical PE for plantation counter is 15 to 25x As such, plantation counters are seriously underappreciated by the market , especially amid poor KLSE sentiment.
Can 2021's earning be sustained in 2022? You will be surprised! Hope this perspective helpful for your investment decision.
novice bo pian the day i wrote on thursday morning before opening the sector just turned bearish and it is now taking control but should bullish sentiment returns then the next first target is at 83 to 85 and if closing price stayed at 76 and above then we should see it going up to 1.00 - 1.20
The plantation land offer protection against inflation mah!
Posted by scjm > Oct 16, 2021 9:46 AM | Report Abuse
novice bo pian the day i wrote on thursday morning before opening the sector just turned bearish and it is now taking control but should bullish sentiment returns then the next first target is at 83 to 85 and if closing price stayed at 76 and above then we should see it going up to 1.00 - 1.20
Many years, the so called ANAL lyst keep harping sell bear call om palm. But, i never listen and keep accumulating when got $$$. CPO keep strengthening year by year to myr5000MT now. many ANAL lyst should just close shop. luckily, listen to master Calvin, lu tao bor team. hehehe
RSS broker kaki lima block all my comments at Brahims..apasal banyak takut comment saya yang positive. Ah pu nei nei broker forever fits jual roti canai kaki lima, betui?? wa comment kat cepat boleh??
All food & beverage, retailers, aviation counters including palm oil are the 1st sectors to recover strongly post covid.... why censor me at Brahims???
Investment in palmoil listed companies got many tier offensive & defensive stategy mah!
Offensive
1. benefit from high oil price reap huge profit improvement, strong cash flow generation and strong and healthy balance sheet
2. Strong dividend will be forthcoming.
3. The govt of indonesia & msia have restricted new palmoil plantation development thus limited future plantation supply in the future which is good as it will lend support to its price loh!
Defensive
1. Land has a finite supply which is a good hedge against inflation
2. Currently plantation trade at a deep undervalue thus give big margin of safety for investor loh!
3. The current of hype of ESG trend which is unsustainable....give a good sound contrarian opportunity for a very strong rebound & upside for plantation going fwd loh!
Counters without EPF and KWAP : THplant +14.5% Bplant. +4.9% Mhc. +3.8% Cepat. +1.3%
Big cap /counters with EPF/KWAP as shareholders: Simepltn - 1.4% IOI. - 0.74% Genp. - 1.83% Klk. +0.35% Taann. - 2.74% Swkpltn. Unchanged SOP. +. 0.77%
I believe EPF and /or KWAP are still selling down today . Only local retailers and some corporates are absorbing the selling and that’s not enough to move price to reflect the robust fundamental of CPO .
the stock is on an uptrend and currently within the triangle once breakout 79.5 then the momentum would be quicken and likely to breach the recent high 81 and to remain above 80 sen thereof...so hopefully the breakout is sooner rather than later...today or esok
breakout needs confirmation with high volume that is above average; so i think the big player(s) is(are) creating the volume to validate the breakout ...the immediate resistance is at 78.5 to 79.5
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
56,242 posts
Posted by calvintaneng > 2021-08-11 16:02 | Report Abuse
Cepat fast up
Now Tsh very undervalue
Tsh is the best buy now!