FLOWS;
BUYS: CIMB, JCY,
Maybank
SELLS: Mulpha,
SPSetia, UMW
PLANTATION SECTOR HIGHLIGHT
Mid and smaller cap plantation names have been going gang
busters in recent days on the back of higher CPO prices which breached the
RM3,600/tn. We have taken a look at less covered names and came up with some
possible hidden gems:
| Name | Mkt Value (Mil) | Hist PE | P/B | Last | YTD | planted Hectare | mature Hectare | FFB | EV per Hectare |
| TDM BHD | 1178 | 7.27 | 1.01 | 4.88 | 29.79% | 35,284 | 32,471 | 550,625 | 33,392 |
| Kwantas Corp BHD | 754 | 7.32 | 0.61 | 2.41 | 19.37% | 17,051 | 13,550 | 334,281 | 44,235 |
| Kretam Holdings BHD | 859 | 7.55 | 1.00 | 2.36 | 0.43% | 14,598 | 12,434 | 247,955 | 58,843 |
| BLD Plantation Bhd | 791 | 7.80 | 1.33 | 9.23 | 26.61% | 24,580 | 21,138.80 | 322,700 | 32,160 |
| Kim Loong Resources Bhd | 816 | 8.41 | 1.61 | 2.66 | 13.68% | 13,868 | 13,074 | 227,325 | 58,825 |
| Cepatwawasan Group BHD | 366 | 8.91 | 0.92 | 1.17 | 14.51% | 19,439 | 19,099 | 148,451 | 18,839 |
| * data based on last reported annual report | 41,049 | ||||||||
| FBMPALM Index | 123.04bn | 13.38 | 2.04 | 8843.66 | 8.29% | ||||
* Note that the FBMPALM Index performance is not a fair
reflection of the sector as KLK and IOIC account for 50% of the index
weighting. IOIC is of course weighted down by expected margin compression in
its down stream sector due to Indonesia's revision in its tax structure for
palm products making Malaysian companies less competitive.
(TYK)
TRADING BUYS;
Kwantas: P/B is only trading at 0.61X while half of its
planted area are either in young or prime age. This bodes well for FFB growth.
Cepat: EV/Hectare is only RM18.8k compare to industry
average of around RM40-50k.