FIGURE 1: TSH RESOURCES BERHAD
LAST 2 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: TSH 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 palm oil mills, which generates about 85% of the Group's revenue.
b. the
Group operates oil palm estates in Sabah and parts of Kalimantan and Sumatra in
Indonesia with a total planted area of 42,000 hectares and total annual fresh
fruit bunches (FFB) production of 857,802 MT.
c. the
group also operate 7 palm oil mills in Malaysia and Indonesia
d. the
Group’s other business activities include the operations of biomass and biogas
power plants in Sabah; industrial tree plantation at the Forest Management Unit
in Ulu Tungud, Sandakan, Sabah; manufacturing and marketing of engineered
hardwood flooring; and processing and marketing of cocoa products.
e. reported
decreasing revenue in 2018 was due to lower CPO selling prices.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~906.4 million in 2018 annual report, this is a medium revenue
company.
b. SHARE
PRICE: from 2018-2020, share price has been decreasing from around RM 1.60 to
RM0.80, by end of 2019, abruptly raised to around RM1.50
c. EARNING
PER SHARE (EPS): earning per share in last 5 years fluctuated from -7.85 to 10.31sen
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 151
million, around 4% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 financial year, TSH declared a dividend payout of 2 sen per
share to shareholders, which amounts to a dividend yield of 1.29%.
b. CONSISTENCY:
the dividend payout was consistent, last five years (2015-2019) dividends
declared range between 2 to 2.5 sen per share.
c. DIVIDEND
PAYOUT RATIO: current financial year dividend payout ratio was 68%.
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2018 financial year, TSH achieved a low return of
shareholders’ equity, at 3.45%.
b. COST-TO-INCOME
RATIO: cost-to-income ratio is high at 1010%.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 99.9 million, equivalent to RM 0.07 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is moderately well supported by institutional investors, there are 15 institutional
investors at top 30 major shareholders list, including EPF (7.05%), KUMPULAN
WANG PERSARAAN (3.84%) and few insurance companies and investment funds. Its
major shareholder is Datuk (Dr.) Kelvin Tan Aik Pen (12.23%).
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