FIGURE 1: GOPENG BERHAD LAST 5 YEARS SHARE PRICE TREND
**analysis based on 2018 annual report.
1. GENERAL INTRO: GOPENG 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 and sale of FFB only, not involve in milling operations
b. The financial year 2018 was generally a very challenging year for the Group as the plantation encountered headwinds in the form of lower production of FFB and lower prices for oil palm products. As a result of the challenges faced, the Group recorded lower profit than previous year.
c. The Group operates oil palm estates in Perak with a total planted area of 1,434 hectares and total annual fresh fruit bunches (FFB) production of 16,345 MT.
3. IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (RM million): 7.45 million as reported in 2018 annual report, this is a very low revenue company.
b. SHARE PRICE: from 2015-2018, share price has been increasing from around RM1.00 to RM1.50 , then decreasing sharply to around RM0.70 by due to the bonus issue of 1 for 2 eﬀected in August 2018, and remained similar until current period
c. EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from 0.57 to 4.44sen
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 4.8 million, around 1% of total assets.
4. IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND YIELD: in 2018 financial year, GOPENG declared a dividend payout of 2.5 sen per share to shareholders, which amounts to a dividend yield of 3.57%.
b. CONSISTENCY: the dividend payout was consistent, dividend paid to shareholders in last five years (2015-2019) ranged from 2.5 to 4 sen per share.
c. DIVIDEND PAYOUT RATIO: in 2018 financial year, GOPENG paid out 312% of its earnings to shareholders in the form of dividend.
5. IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN ON EQUITY (ROE): in 2018 financial year, GOPENG achieved a low return of shareholders’ equity, at 0.74%. Last five years ROE ranged from 0.35 to 2.72%.
b. COST-TO-INCOME RATIO: its cost-to-income ratio is low at 46%.
6. OTHER INDICATORS:
a. CASH FLOW: cash flow is negative, around RM 12.1 million, equivalent to RM 0.05 per share
b. SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well supported by institutional investors, there are only 10 institutional investors at top 30 major shareholders list, not including insurance companies and investment funds. Its major shareholders are Dato’ Mohd Salleh Bin Hashim (32.96%) and Fortuna Gembira Enterpris Sdn Bhd (15.33%).
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