FIGURE 1: NEGRI SEMBILAN
OIL PALMS BERHAD LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: NEGRI SEMBILAN OIL PALMS (NSOP) is
one of the main oil palm plantations in Malaysia.
2.
NOTABLE POINTS:
a. in
2018 report, reported incurred net loss due to weak crude palm oil prices
b. NSOP
owns four estates, with total land banks of ~7682 hectares
c. the
Group also has interest in oil palm plantation in Indonesia
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~62.1 million in 2018 annual report, this is a low revenue
company.
b. SHARE
PRICE: from 2018-2019, share price range between RM3.00 to RM4.00
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -5.73 to 13.5sen
d. FUTURE
POTENTIAL/PROSPECTS: share price may drop in the next few years if continue to
make losses
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 7.8
million, around 1% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 financial year, NSOP declared a dividend payout of 8 sen per
share to shareholders despite making losses. The dividend yield amounts to 2.38%
only.
b. CONSISTENCY:
consistent dividend payout, last five years (2014-2018) dividends declared range
between 6 to 9 sen per share.
c. DIVIDEND
PAYOUT RATIO: from 2014-2018 financial years, NSOP’s dividend payout ratio range
from 44 to 136%.
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2018 financial year, NSOP achieved a negative return of
shareholders’ equity, at -0.31%, due to making losses The ROE in last five
years ranged from -0.81 to 1.67%.
b. COST-TO-INCOME
RATIO: cost-to-income ratio is negative at about -2687%.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 70.8 million, equivalent to RM 1.01 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 8 institutional
investors at top 30 major shareholders list, not including EPF, PERMODALAN
NASIONAL BERHAD, SKIM AMANAH SAHAM BUMIPUTERA, KUMPULAN WANG PERSARAAN, insurance
companies and investment funds. Its major shareholder is TIONG THYE COMPANY
BERHAD (55.13%).
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