FIGURE 1: CHIN TEK
PLANTATIONS BERHAD LAST 5 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: CHIN TEK is one of the main oil
palm plantations in Malaysia.
2.
NOTABLE POINTS:
a. In
2018 report, reported having a total of three estates, with a total land bank
of ~11,327 hectares. The Company also owns three mills with a total milling
capacity of 70MT per hour. The Group also has interests in oil palm plantations
in Indonesia and property development in Malaysia.
b. The
Group suffered an overall loss of RM10,878,291 from its share of results of the
investments in oil palm plantations in Indonesia for the FY2018. Harvesting of
the mature fields in the oil palm plantation located in South Sumatera
Province, Indonesia has been delayed due to the unrest in the villages
neighbouring the estate.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~149.9 million in 2018 annual report, this is a low revenue
company.
b. SHARE
PRICE: from 2015-2019, share price share decreased from around RM9.00 to RM6.00
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from 19.43 to 78.97sen
d. FUTURE
POTENTIAL/PROSPECTS: quite dependable and reliable counter, share price expected
to be stable.
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 2.7
million, around 0.4% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 report, CHIN TEK declared a total dividend payout of 30 sen per
share, amounts to dividend yield of 4.69% based on current share price.
b. CONSISTENCY:
consistent dividend payout, last five years (2015-2019) dividends declared range
between 16 to 35 sen per share.
c. DIVIDEND
PAYOUT RATIO: in 2018 financial year, CHIN TEK paid out about 38% of its
earnings to investors in the form of dividend.
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2018 financial year, CHIN TEK achieved a low return of
shareholders’ equity, at 10.37%.
b. COST-TO-INCOME
RATIO: cost-to-income ratio is moderate at about 79%.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 134.3 million, equivalent to RM 1.47 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 19 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 TIONG THYE COMPANY BERHAD (36.67%),
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