FIGURE 1: KWANTAS CORP BERHAD
LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2019 annual report.
1.
GENERAL INTRO: KWANTAS 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
b. the
Group operates 25 oil palm estates in Malaysia and Indonesia with a total
planted area of 19,665 hectares and total annual fresh fruit bunches (FFB)
production of 288,671 MT.
c. the
group also operates 3 palm oil mills with a total production capacity of 180 MT
per hour, that produced 107,610 MT CPO in 2019 financial year.
d. the
Group is also involved in refined palm products manufacturing and trading
e. the
Group’s net loss for the financial year under review was RM99.65 million as
against a loss of RM93.41 million in the preceding year. The Group had provided
for impairment loss on property, plant and equipment, depreciation of property,
plant and equipment, fair value loss on biological assets, property, plant and
equipment written off and fair value loss on derivative financial instruments.
Excluding the non-cash and provisional items, the Group underlying profit was
RM1.53 million for financial year 2019.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~773.6 million in 2019 annual report, this is a medium revenue
company.
b. SHARE
PRICE: from 2018-2020, share price has been decreasing from around RM1.50 to
RM0.75
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -29.66 to 12.5sen
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 15.8
million, around 1% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2019 financial year, KWANTAS did not declare a dividend payout to
shareholders.
b. CONSISTENCY:
the dividend payout was not consistent, there was no dividend paid to
shareholders in last five years (2015-2019) except for 2015.
c. DIVIDEND
PAYOUT RATIO: N/A
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2019 financial year, KWANTAS achieved a low return of
shareholders’ equity, at -8.9%, due to making losses.
b. COST-TO-INCOME
RATIO: N/A
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 39.6 million, equivalent to RM 0.13 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 4 institutional
investors at top 30 major shareholders list, including EPF (3.67%) but not including
insurance companies and investment funds. Its major shareholder are KWAN NGEN
CHUNG (30.22%) and KWAN NGEN WAH (29.9%).
Disclaimer:
The content of the blog posts are for sharing purpose only. Readers are
encouraged to carry out further research and analysis as well as follow up latest
update information before making any investment decisions.
Feel
free to “Like” or “Follow” my Facebook Page (大马股市分析 Malaysia Stock Analysis, https://www.facebook.com/%E5%A4%A7%E9%A9%AC%E8%82%A1%E5%B8%82%E5%88%86%E6%9E%90-Malaysia-Stock-Analysis-100684328044058
) to receive latest updates on new articles.
No comments:
Post a Comment