COMMENTS ON GOLDEN LAND BHD (7382)


FIGURE 1: GOLDEN LAND BHD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2019 annual report.
1.       GENERAL INTRO: GOLDEN LAND 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 property development. Golden Land Berhad started its oil palm plantation with a small estate of approximately 82 hectares, in Telupid, Sabah, which grew to 10,150 hectares by 2014. In 2016, the Group disposed 9,812 hectares of its oil palm plantation in Sabah, and refocused on developing greenfeld oil palm plantations in Indonesia.
b.      The Group operates 5 oil palm estates in Malaysia and Indonesia with a total planted area of 4,977 hectares. Currently its plantations in Indonesia are mostly at the immature stage, hence not generating significant profits for the Group.
c.       In terms of its property development business, the Group is currently developing industrial units at Penang, as well as planning residential project in Sabah.

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 
a.       REVENUE RANGE (RM million): 12 million as reported in 2019 annual report, this is a very low revenue company.
b.      SHARE PRICE: from 2015-2016, share price was around RM1.50, shapre price dropped sharply to around RM0.50 in 2016, share price remain strady until current period
c.       EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from -10.66 to 33.73 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 31.4 million, around 5% of total assets.

4.       IS THIS A STRONG DIVIDEND STOCK?     
a.       DIVIDEND YIELD: in 2019 financial year, GOLDEN LAND did not declared a dividend payout to shareholders.
b.      CONSISTENCY: the dividend payout was not consistent, the dividend paid to shareholders in the last five years (2015-2019) ranged from 0 to 88 sen per share.
c.       DIVIDEND PAYOUT RATIO: N/A

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 -4.78%.
b.      COST-TO-INCOME RATIO: N/A

6.       OTHER INDICATORS:
a.       CASH FLOW: cash flow is positive, around RM 32.33 million, equivalent to RM 0.15 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 Agromate Holdings Sdn Bhd (25.39%) and Yap Phing Cern (32.91%).

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