FIGURE 1: JAYA TIASA
HOLDINGS BERHAD LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2019 annual report.
1.
GENERAL INTRO: JAYA TIASA 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 palm oil mills (71.71%) and timber operations (28.25%)
b. The
Group closed the year with revenue of RM637.7 million, a 24% drop from previous
year’s RM841.7 million. There was a Net Loss of RM265.3 million down from the
previous Net Loss of RM69.8 million. The reason for the widening loss were due
to 23% lower CPO selling price, significant lower sales volume for our timber
products, and the derecognition and reversal of deferred tax assets on
unabsorbed tax losses in loss making subsidiaries amounting to RM80 million
recognized during the year. Loss per share was 27.48 sen compared to 7.34 sen
in the previous year.
c. The
Group operates 10 oil palm estates in Sarawak with a total planted area of
69,589 hectares and total annual fresh fruit bunches (FFB) production of
1,095,575 MT.
d. The
group also operates 4 palm oil mill that has a capacity of 1,782,000 MT per annum.
e. For
timber operations segment, log production decreased by 26% following selective
harvesting of profitable species and sizes and amidst ongoing Sustainable
Forest Management Certification implementation. The Group encountered operation
challenges such as appointment of new contractor, mobilizaton of machineries
and transportaton of timbers during transitional period which affected log
production. During the year, India continues to be our largest log export destination
with 43% of export sales. The rest of the market was shared by Taiwan, Japan
and other Asean countries.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (RM million): 637.4 million as reported in 2019 annual report, this is a medium
revenue company.
b. SHARE
PRICE: from 2018-2020, share price has been decreasing from around RM1.00 to
RM0.50, then increasing sharply to around RM1.00 by end of Dec 2019
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -27.48 to 5.6sen
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 53.9
million, around 2% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2019 financial year, JAYA TIASA did not declare a dividend payout to
shareholders.
b. CONSISTENCY:
the dividend payout was not consistent, dividend paid to shareholders in last
five years (2014-2019) ranged from 0 to 1.3 sen per share.
c. DIVIDEND
PAYOUT RATIO: N/A
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2019 financial year, JAYA TIASA achieved a low return of
shareholders’ equity, at -22.7%. Last five years ROE ranged from -22.7 to 3%.
b. COST-TO-INCOME
RATIO: N/A
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is negative, around RM -131.4 million, equivalent to RM -0.14
per share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 17 institutional
investors at top 30 major shareholders list, including SOCSO (1.06%) and few insurance
companies and investment funds. Its major shareholder is Tiong Toh Siong
Holdings Sdn Bhd (21.36%).
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