FIGURE 1: IJM PLANTATIONS BERHAD
LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2019 annual report.
1.
GENERAL INTRO: IJM is one of the main oil palm
plantations in Malaysia.
2.
NOTABLE POINTS:
a. In
2019 report, main business segments include operation of oil palm plantations
and palm oil mills
b. the
Group operates oil palm plantations in Sandakan, Sabah as well as in Indonesia,
with a total planted area of 60,633 hectares and total annual fresh fruit
bunches (FFB) production of 976,395 MT
c. the
group also operates 6 palm oil mills with a total processing capacity of 300 MT
FFB per hour.
d. In
the current financial year, Indonesia and Malaysia are expected to retain their
position as the top two largest producers of palm oil, making up 84% of global
palm oil output.
e. -The
reported losses before tax (RM 43.31 million) in the current financial
year was mainly due to lower crude palm
oil (CPO) prices, a signifcant net unrealised foreign exchange loss of RM25.79
million resulting from the translation of the US Dollar denominated borrowings
and increasing production cost
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~630.9 million in 2019 annual report, this is a medium revenue
company.
b. SHARE
PRICE: from 2018-2019, share price decreased from around RM2.00 to RM1.50, then
returned back to ~RM2.00 by end of 2019
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -4.13 to 13.07sen
d. FUTURE
POTENTIAL/PROSPECTS: share price expect to be stable in the next few years
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 138.8
million, around 6% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2019 financial year, IJM declared a dividend payout of 5 sen per
share to shareholders despite making losses. This amounts to dividend yield of
2.2%.
b. CONSISTENCY:
the dividend payout was consistent, last five years (2015-2019) dividends
declared range between 5 to 7 sen per share.
c. DIVIDEND
PAYOUT RATIO: N/A
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2019 financial year, IJM achieved a negative return of
shareholders’ equity, at -3.3%, due to making losses.
b. COST-TO-INCOME
RATIO: N/A
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 127.8 million, equivalent to RM 0.15 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is well supported by institutional investors, there are 25 institutional
investors at top 30 major shareholders list, including EPF (14.01%), SOCSO (0.26%),
insurance companies and investment funds. Its major shareholder is IJM
CORPORATION BERHAD (56.2%).
Disclaimer:
The content of the blog posts are for sharing purpose only. Readers are
encouraged to carry out further research and analysis as well as follow up
latest update information before making any investment decisions.
Feel
free to “Like” or “Follow” my Facebook Page (大马股市分析 Malaysia Stock Analysis, https://www.facebook.com/%E5%A4%A7%E9%A9%AC%E8%82%A1%E5%B8%82%E5%88%86%E6%9E%90-Malaysia-Stock-Analysis-100684328044058
) to receive latest updates on new articles.
No comments:
Post a Comment