FIGURE 1: PINEHILL PACIFIC
BHD LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2019 annual report.
1.
GENERAL INTRO: PINEHILL PACIFIC 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 milling operations.
b. The
Group operates oil palm estates in Perak (Malaysia) and Indonesia with a total
planted area of 11,446 hectares and total annual fresh fruit bunches (FFB)
production of 37,000 MT.
c. The
group also operates 1 palm oil mill that produced 7000 MT CPO in 2019.
d. Under
current development, the Company sold 3,641 hectares (Perak) of plantations to
United Plantations Berhad. Subsequent to the completion of the disposal, the
Company is therefore being classifed as an “Affected Listed Issuer”pursuant to
Paragraph 8.03A of the Listing Requirements. Being an “Affected Listed Issuer”,
the Company is subject to amongst others to regularise its condition within
twelve (12) months and to notify the status of its regularisation plan on a
monthly basis.
e. The
Group recorded revenues of RM16.48 million (including discontinued operation of
RM15.98 million) and loss after taxation
of RM32.42 million in FY2019. This was attributed to a decrease of FFB and CPO
production as well as amortisation cost in the Indonesia operations.
f.
Following the disposal of its Teluk Intan
plantations, current year prospect of the Company would depend on the
performance of its oil palm development project in Indonesia subsidiaries which
requires additional investment for infrastructure to facilitate upkeep and
harvesting.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (RM million): 16.48 million as reported in 2019 annual report, this is a very
low revenue company.
b. SHARE
PRICE: from 2018-2019, share price increasing from around RM0.20 to RM0.30, then increasing
sharply to around RM0.40 by January 2020
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -19.38 to -7.09
sen, making losses in all of last five years.
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 0.19
million, around 0.06% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2019 financial year, PINEHILL PACIFIC did not declared a dividend
payout to shareholders.
b. CONSISTENCY:
the dividend payout was not consistent, there was no dividend paid to
shareholders in all of last five years (2015-2019).
c. DIVIDEND
PAYOUT RATIO: N/A
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2019 financial year, PINEHILL PACIFIC reported a low return
of shareholders’ equity, at -18.19%.
b. COST-TO-INCOME
RATIO: N/A
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive but very low, around RM 0.19 million, equivalent to
RM 0.001 per share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are 5 institutional
investors at top 30 major shareholders list, not including insurance companies and
investment funds. Its major shareholders are Allgrow Capital (M) Sdn Bhd (22.78%)
and Puan Sri Datin Vivienne Ketheeswaran (9.55%).
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