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%).
Disclaimer: The content of the blog posts are for sharing purpose
only. Readers are encouraged to carry out further research and analysis
as well as follow up latest update information before making any
investment decisions.
http://louisesinvesting.blogspot.com/2020/01/comments-on-astral-asia-bhd-7054.html
