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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