FIGURE 1: ASTRAL ASIA BHD LAST 5 YEARS SHARE PRICE TREND
**analysis based on 2018 annual report.
1. GENERAL INTRO: ASTRAL ASIA 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 (does not involve in milling) and property development.
b. The Group operates oil palm estates in Pahang with a total planted area of 3,662 hectares and total annual fresh fruit bunches (FFB) production of 40,872 MT.
c. In FY2018, the Group incurred a loss after tax of RM6.8 million compared to a loss after tax of RM 0.6 million in the previous financial year. This was mainly due to the lower crude palm oil prices coupled with lower fresh fruit bunches production during the financial year.
3. IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (RM million): 24.6 million as reported in 2018 annual report, this is a low revenue company.
b. SHARE PRICE: share price ranged from ~ RM0.10 to RM0.20 since 2016.
c. EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from -0.83 to 0 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 2.2 million, around 0.5% of total assets.
4. IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND YIELD: in 2018 financial year, ASTRAL ASIA did not declare a dividend payout to shareholders.
b. DIVIDEND PAYOUT RATIO: N/A
c. CONSISTENCY: the dividend payout was not consistent, the dividend paid to shareholders in the last five years ranged from 0 to 2 sen.
5. IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN ON EQUITY (ROE): in 2018 financial year, ASTRAL ASIA reported a very low return of shareholders’ equity, at -2.37%.
b. COST-TO-INCOME RATIO: N/A
6. OTHER INDICATORS:
a. CASH FLOW: cash flow is positive but very low, around RM 0.6 million, equivalent to RM 0.001 per share.
b. SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well supported by institutional investors, there are only 5 institutional investors at top 30 major shareholders list, not including insurance companies and investment funds. Its major shareholders are Dato’ Lim Kang Poh (27.14%) and Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang (26.91%).
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