FIGURE 1: FGV HOLDINGS BERHAD
LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: FGV is one of the main oil palm
plantations in Malaysia.
2.
NOTABLE POINTS:
a. In
2018 report, main business segments include operation of oil palm plantations
and palm oil mills
b. the
Group operates oil palm estates in Malaysia (Pahang and Sabah) and Indonesia
(Kalimantan) with a total planted area of 339,385 hectares and total annual
fresh fruit bunches (FFB) production of 4.21 million MT.
c. the
group also operate 68 palm oil mills that produced 2.82 million MT CPO in 2018.
d. FGV
is also Malaysia’s leading refined sugar producer. FGV commands more than 59%
percent of the local refined sugar market with an annual production capacity of
0.96 million tonnes
e. FGV
recorded a Loss Before Zakat and Tax of RM1.02 billion due to a RM949 million
impairment and lower prices of CPO. The impairments were due to non-performing
investments such as Asian Plantations Limited, FGV Green Energy, FGV Cambridge
Nanosystems
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~13464 million in 2018 annual report, this is a high revenue
company.
b. SHARE
PRICE: from 2018-2019, share price has been fluctuating between around RM 0.50
to RM2.00
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -29.6 to 8.9sen
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 963.7
million, around 5% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 financial year, FGV did not declare a dividend payout to
shareholders.
b. CONSISTENCY:
the dividend payout was not consistent, last five years (2014-2018) dividends
declared range between 0 to 10 sen per share.
c. DIVIDEND
PAYOUT RATIO: N/A
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2018 financial year, FGV achieved a low return of
shareholders’ equity, at -24.1%, due to making losses. Its ROE ranged from -24.1
to 5.1% in the last five years.
b. COST-TO-INCOME
RATIO: N/A
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 1095.5 million, equivalent to RM 0.30
per share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is well supported by institutional investors, there are 29 institutional
investors at top 30 major shareholders list, including EPF (1.21%), SKIM AMANAH
SAHAM BUMIPUTERA (0.55%), KUMPULAN WANG PERSARAAN (5.83%) and few insurance
companies and investment funds. Its major shareholder are LEMBAGA KEMAJUAN
TANAH PERSEKUTUAN (FELDA) (21.24%) and FELDA ASSET HOLDINGS COMPANY SDN BHD
(12.42%).
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