COMMENTS ON BLD PLANTATION BHD (5069)

FIGURE 1: BLD PLANTATION BHD LAST 5 YEARS SHARE PRICE TREND

FIGURE 2: SHARE PRICE GROWTH FROM 2004 TO 2019, IN COMPARISON TO KLSE INDEX, BLD PLANTATION BHD (BLUE) GREW BY 227%, WHILE KLSE INDEX (YELLOW) GREW BY 84%

**analysis based on 2017 annual report.

1.       GENERAL INTRO: This counter core business is on oil palm plantation and processing.

2.       NOTABLE POINTS:

a.       Total planted area = 31,200 hectares, with 84% in maturity stage. Crude palm oil produced = 115,500 metric tonnes, total volume of palm oil products sold = 760,000 metric tonnes

b.      Top three importing countries of Malaysia palm oil products are India, European Union and China.

c.       Since 2004, share price grow by ~227%, which is higher than the KLSE index, which grew by ~84%

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~ 2134 million in 2017 annual report, this is a high revenue company.

b.      SHARE PRICE: last few years share price steady around RM8, abrupt drop of share price in 2018 due to reported losses in recent two quarters

c.       EARNING PER SHARE (EPS): last 10 quarters earnings range from -17.93 to 21.84 sen per share. Eight out of ten quarters making profit.

d.      FUTURE POTENTIAL: facing competition from other palm oil producers countries such as indonesia, as well as other types of oil such as sunflower oil and soybean oil

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is quite low, 46.3 million, around 3% of total assets, appear company has no large scale expansion plan.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2017 report, dividend payout of 4 sen per share declared, dividend yield around 0.53%

b.      CONSISTENCY: in last five years have consistent dividend payout to shareholders, range from 2-5 sen per share

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 282.5 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: there is no presence of institutional investors at top 30 major shareholders list

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