FIGURE 1: GENTING
PLANTATIONS BERHAD LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: Genting Plantations (GENP) is one
of the main oil palm plantations in Malaysia.
2.
NOTABLE POINTS:
a. In
2018 report, GENP has a total planted area of 159,125 hectares. In addition,
our Group also owns seven oil mills in Malaysia and four in Indonesia, with a
total milling capacity of 550 metric tonnes per hour. Also diversified into
property development and biotechnology.
b. there
has been efforts to reduce dependence on labour in estates through
mechanisation, whereby Malaysian estates are nearly fully mechanised in all
areas possible, with two of the oil mills automated and requiring minimal human
supervision.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~1902.8 million in 2018 annual report, this is a high revenue
company.
b. SHARE
PRICE: from 2018-2019, share price share remain steady at around RM10.00
c. EARNING
PER SHARE (EPS): earning per share in last 5 years decreased from 46.6 to 20.5sen
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 295.8
million, around 3% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 report, GENP declared a total dividend payout of 13 sen per
share, amounts to dividend yield of 1.23 % based on current share price.
b. CONSISTENCY:
consistent dividend payout, last five years (2015-2019) dividends declared range
between 5 to 26 sen per share.
c. DIVIDEND
PAYOUT RATIO: in 2018 financial year, GENP paid out about 65% 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, GENP achieved a low return of
shareholders’ equity, at 3.9%. Last five years ROE range from 4 to 10%.
b. COST-TO-INCOME
RATIO: cost-to-income ratio is high at about 816%.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 949.9 million, equivalent to RM 1.18 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is very well supported by institutional investors, there are 30 institutional
investors at top 30 major shareholders list, including EPF (7.517%), SKIM
AMANAH SAHAM BUMIPUTERA (6.188%), KUMPULAN WANG PERSARAAN (5.952%), GENTING
BERHAD (50.145%), SOCSO (1.35%), insurance companies and investment funds.
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