FIGURE 1: NPC RESOURCES BERHAD
LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: NPC is one of the main oil palm
plantations in Malaysia.
2.
NOTABLE POINTS:
a. In
2018 report, reported main business segments include operation of oil palm
plantations and palm oil mills, trading of fresh fruit bunches (“FFB”),
provision of transportation services, property letting and operation of hotel.
b. the
Group currently operates approximately 11,669 hectares of plantation land in
Sabah and another 18,418 hectares in Kalimantan, Indonesia. It also operates
two palm oil processing mills which has a combined production capacity of 135
tonnes of FFB per hour.
c. reported
loss net of tax increased to RM64.104 million in 2018 as compared to profit net
of tax in last financial year of RM13.965 million was mainly due to lower
average crude palm oil (CPO) and palm kernel (PK) realised price from
plantation segment.
d. In
terms of the hotel segment, it is expected to continue improving in the current
financial year as Sabah has become one of the most popular travel destinations
for Chinese tourists visiting Sabah in the coming years.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~228.3 million in 2018 annual report, this is a medium revenue
company.
b. SHARE
PRICE: from 2018-2019, share price steady at around RM1.90.
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -41.26 to 42.25sen
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 47.3
million, around 4% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 financial year, NPC did not declare a dividend payout to
shareholders.
b. CONSISTENCY:
except for financial year 2018, the dividend payout was consistent, last five
years (2014-2018) dividends declared range between 0 to 1 sen per share.
c. DIVIDEND
PAYOUT RATIO: N/A
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2018 financial year, NPC achieved a negative return of
shareholders’ equity, at -24%, due to making losses.
b. COST-TO-INCOME
RATIO: N/A
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 3.5 million, equivalent to RM 0.03 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 6 institutional
investors at top 30 major shareholders list, not including insurance companies and
investment funds. Its major shareholders are JUBILANT VENTURES SDN BHD (32.86%)
and TAN SRI DATO SRI KOH KIN LIP (16.93%).
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