FIGURE 1: BLD PLANTATION BERHAD
LAST 5 YEARS SHARE PRICE TREND
**analysis
based on 2019 annual report.
1.
GENERAL INTRO: BLD is one of the main oil palm
plantations in Malaysia.
2.
NOTABLE POINTS:
a. In
2019 report, the Group has total planted area of about 38,300 hectares, owns
two palm oil mills that produced about 145,800 metric tonnes of crude palm oil
in the financial year. The Group has implemented mechanisation in some of the
estates to enhance productivity and efficiency by reducing reliance on labour.
b. In
the current financial year, the group is hit by a -54.11 sen per share losses,
due to adverse market conditions and lower average selling price of its
products.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~2184.1 million in 2019 annual report, this is a high revenue
company.
b. SHARE
PRICE: from 2015-2019, share price share decreased from around RM8.00 to RM5.00
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -54.11 to 22.87sen
d. FUTURE
POTENTIAL/PROSPECTS: share price may drop further if company continue to make
losses.
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 107.2
million, around 10% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2019 report, BLD did not declare a dividend payout to shareholders.
b. CONSISTENCY:
not consistent dividend payout, last five years (2015-2019) dividends declared range
between 0 to 4 sen per share.
c. DIVIDEND
PAYOUT RATIO: in 2019 financial year, BLD paid out 0% of its earnings to
investors in the form of dividend.
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2019 financial year, BLD achieved a low return of
shareholders’ equity, at -9.25%.
b. COST-TO-INCOME
RATIO: cost-to-income ratio is negative at about -3634%, due to losses in the
financial year.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 158.6 million, equivalent to RM 1.70 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 21 institutional
investors at top 30 major shareholders list, not including EPF, SKIM AMANAH
SAHAM BUMIPUTERA, KUMPULAN WANG PERSARAAN, SOCSO, insurance companies and
investment funds. Its major shareholder is BLD HOLDINGS BERHAD (35.74%).
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