Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Saturday, March 20, 2010

Plantation Co. Quarterly EPS 2

HS Plant (latest Q eps 5 sen, nta RM 2.10). Fv = 5 x 4 x 10 = RM2.00
At RM2.40 it's fairly priced (@ PER 12), given its historic 5 sen dividend tax exempted to be declared on both June and Oct. I'm expecting a 5 sen dvd tax-exempted this June.
Assume 10 sen tax-exempted, dvd yield = 10 sen/240 = 4.17%

TH Plant (latest Q eps 4.6 sen, nta RM0.93). Fv = 4.6 x 4 x 10 = RM1.84
At RM1.55 it's fairly attractive, considering it may pay 8.5 sen dvd taxable in this May

IJM Plant (latest Q eps 5.2 sen, nta RM1.48). Fv = 5.2 x 4 x 10 = RM2.08
At RM2.50 it's fairly priced (@ PER 12). I think it may not pay the usual dvd of 8 sen in July as it expands its land bank in Indonesia; typical of a good growth stock capex.

Kim Loong (latest Q eps 4.8 sen, nta RM1.39). Fv = 4.8 x 4 x 10 =RM1.92
At RM2.15 it's fairly priced over PER of 11. Usual dvd payout 3 sen in Jul, 4 sen in Nov.

TSH Plant (latest Q eps 5.4, nta RM 1.78). Fv = 5.4 x 4 x 10 = RM2.16
At RM2.06 it's fairly attractive. Usual dvd payout of 5 sen in Jun

Unico Plant (latest Q eps 1.7 sen, nta RM0.88). Fv = 1.7 x 4 x 10 = RM0.68
At RM0.82, it's priced at PER of 12. Usual dvd payout of 2 sen in March and 2 sen in Oct
If you have bought in at RM0.80, dvd yield annualised 4 sen/80 sen = 5 %

Important to note: Investing in Plantation Co. is for the very long term investor.
Catalyst: Adverse weather resulting in dwindling CPO causing price surge. Tracks Soya bean oil as agri alternative and Crude Oil as bio fuel alternatives.
Demographic changes causing scarcity of land banks for agri, manufacturing, infra-structure and housing development. Land banks of plantation companies appreciate in value and surge when converted to development land.

Happy investing...! May Jesus Christ bless you richly in spirit, mind, heart, physique, family relationship, schools, business and in your finance..
J = X

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