FIGURE 1: PLS PLANTATIONS BERHAD
LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2019 annual report.
1.
GENERAL INTRO: PLS is one of the main oil palm
plantations in Malaysia.
2.
NOTABLE POINTS:
a. In
2019 report, PLS’s business segments include operation of oil palm plantations
and sale of fresh fruit bunches (FFB), it is not involve in milling FFB to
produce crude palm oil (CPO)
b. the
Group operates oil palm estates in Johor with a total planted area of 10,516
hectares and total annual fresh fruit bunches (FFB) production of 127,343 MT.
c. The
reported pre-tax loss of RM24.8 million in the 2019 financial year was mainly
attributable to the significant drop of approximately 27% in the average
selling prices realised for Fresh Fruit Bunches (“FFB”) despite of the marginal
increase in the FFB harvested. The volatile selling price has immensely
impacted to the Group’s performance under the plantation segment.
d. in
the 2019 financial year, in addition to oil palm plantations, the Group also
diversified into durian businesses aim for export to China, whereby it is
operating two durian processing plants in Melaka and Pahang, respectively.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~63.1 million in 2019 annual report, this is a low revenue
company.
b. SHARE
PRICE: from 2018-2020, share price has been fluctuating at around RM0.80
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -4.53 to 2.06sen
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 5.48
million, around 1% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2019 financial year, PLS 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).
c. DIVIDEND
PAYOUT RATIO: N/A
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2019 financial year, PLS 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 5.4 million, equivalent to RM 0.02 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 7 institutional
investors at top 30 major shareholders list, not including insurance companies and
investment funds. Its major shareholder are Ekovest Berhad (29.67%), Limbongan
Resources Sdn Bhd (21.38%) and Tan Sri Dato’ Lim Kang Yew (10.32%).
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