COMMENTS ON DUTALAND BHD (3948)


FIGURE 1: DUTALAND BHD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2019 annual report.
1.       GENERAL INTRO: DUTALAND had been 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 property development.
b.      The Group gained RM395.7 million from the disposal of its plantation assets in FY2018. The main contributor to the Group’s revenue now is its property division.
c.       The Group currently has RM410.7 million invested in money market fund, it is looking for viable business ventures and will ensure all assets are being managed prudently.

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 
a.       REVENUE RANGE (RM million): 26.7 million as reported in 2019 annual report, this is a very low revenue company.
b.      SHARE PRICE: from 2015-2019, share price ranged between RM0.40 to RM0.60
c.       EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from -0.44 to 45.6 sen.
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 45.4 million, around 3% of total assets.

4.       IS THIS A STRONG DIVIDEND STOCK?     
a.       DIVIDEND YIELD: in 2019 financial year, DUTALAND declared a dividend payout of 5 sen per share to shareholders. The dividend amounts to a dividend yield of 11.76%.
b.      DIVIDEND PAYOUT RATIO: In FY2019, DUTALAND paid out 333% of its earnings to shareholders in the form of dividend.
c.       CONSISTENCY: the dividend payout was not consistent, the dividend paid to shareholders in the last five years (2015-2019) ranged from 0 to 5 sen per share.

5.       IS THE MANAGEMENT PERFORMANCE GOOD?
a.       RETURN ON EQUITY (ROE): in 2019 financial year, GOLDEN LAND reported a low return of shareholders’ equity, at 0.82%.
b.      COST-TO-INCOME RATIO: cost-to-income ratio is high at 128%

6.       OTHER INDICATORS:
a.       CASH FLOW: cash flow is positive, around RM 73.3 million, equivalent to RM 0.09 per share
b.      SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well supported by institutional investors, there are only 9 institutional investors at top 30 major shareholders list, not including insurance companies and investment funds. Its major shareholders are Kenny Height Developments Sdn Bhd (31.74%) and Duta Equities Sdn. Bhd. (25.02%).

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