3 ways to evaluate Plantation Stocks

Koon Yew Yin 24 April 2022 

The best way to compare plantation stocks is to total up the FFB production for the last 3 months for each company and divided by its Market capitalisation. The reason is that all the plantation companies will have to report their profit for the quarter ending March before the end of May. Due the record high CPO price all the planation companies will report increased profit. Which will report the best profit in comparison with its market capitalisation? 

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NameFFB in last 3 months TonsTotal 3 months Market CapRm million 3 months FFB ÷ Market Cap  
Subur Tiasa18,295   
Jaya Tiasa55,365   
Sarawak Plant19,126   
Hap Seng43,563   
Ta Ann45,505   

Subur Tiasa , Jaya Tiasa and Ta Ann also produce sawn timber, ply wood and wood chip boards.  

Comparison based on historical PE 

NamePrice Rm Latest EPS Latest EPS X4 Price ÷EPS X4 
Subur2.20 16.1564.6 3.4
Cepat 1.147.7431.03.4
Jaya Tiasa1.095.2821.125.2
Sarawak Pl2.9011.6646.66.2
Hap Seng2.4911.7947.26.3
Ta Ann5.5921.882.26.4

Comparison based on Market cap ÷ planted Hectare 

NamePrice Rm Market CapMillion HectareMC÷Ha 
Subur2.20 460 44,00010.5
Jaya Tiasa 1.091,06270,00015.2
SarawakPl 2.9081235,00023.0
Ta Ann5.942,64250,00052.8
Hap Seng3.052,39235,00067.0 

Indonesia Government bans palm oil export. 

The Indonesian Government just announced the ban of palm oil export to help the local consumers because the palm oil price has been going up higher and higher. As a result, CPO price has not retreated from its historical high. As shown on the CPO price chart below the current price is Rm 6,869.00 per ton.  

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