FIGURE 1: SIN HENG CHAN
(MALAYSIA) BHD LAST 5 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: SIN HENG CHAN is one of the main
oil palm plantations in Malaysia.
2.
NOTABLE POINTS:
a. In
2018 report, main business segments include operation of oil palm plantations
and sale of fresh fruit bunches (FFB), not involved in milling to produce crude
palm oil (CPO).
b. The
Group operates oil palm estates in Sarawak with an annual fresh fruit bunches
(FFB) production of 31,195 MT.
c. Income
from its plantation segment makes up 40% of the group's revenue, while the
Group is also involved in energy and facility management services, which
contributes 60% of its revenue.
d. In
the FY 2018, the Group registered a loss attributable to equity holders of the
company of RM6.3 million compared to a net loss of RM1.7 million in FY 2017.
This was primarily driven by losses from the plantations segment, which
suffered from low average CPO prices in 2018.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (RM million): 32.5 million as reported in 2018 annual report, this is a low
revenue company.
b. SHARE
PRICE: from 2015-2019, share price has decreased from ~ RM0.80 to RM0.20, then
increasing sharply to ~RM0.40 by January 2020, due to recent uptrending of CPO
price.
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -5.02 to 2.27
sen, making losses in 4 out of last 5 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 3 million,
around 1% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 financial year, SIN HENG CHAN did not declare a dividend payout to
shareholders.
b. DIVIDEND
PAYOUT RATIO: N/A
c. CONSISTENCY:
the dividend payout was not consistent, there was no dividend paid to
shareholders in all of last five years.
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2019 financial year, SIN HENG CHAN reported a low return of
shareholders’ equity, at -7.92%.
b. COST-TO-INCOME
RATIO: N/A
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is negative, around RM -22.5 million, equivalent to RM -0.17
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, including few insurance companies and
investment funds. Its major shareholders are Wan Jin Resources Sdn Bhd (14.55%)
and Dato’ Choo Keng Weng (13.17%).
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