FIGURE 1: KWANTAS CORP BERHAD LAST 2 YEARS SHARE PRICE TREND
**analysis based on 2019 annual report.
1. GENERAL INTRO: KWANTAS is one of the main oil palm plantations in Malaysia.
2. NOTABLE POINTS:
a. In 2019 report, main business segments include operation of oil palm plantations and palm oil mills
b. the Group operates 25 oil palm estates in Malaysia and
Indonesia with a total planted area of 19,665 hectares and total annual
fresh fruit bunches (FFB) production of 288,671 MT.
c. the group also operates 3 palm oil mills with a total
production capacity of 180 MT per hour, that produced 107,610 MT CPO in
2019 financial year.
d. the Group is also involved in refined palm products manufacturing and trading
e. the Group’s net loss for the financial year under review was
RM99.65 million as against a loss of RM93.41 million in the preceding
year. The Group had provided for impairment loss on property, plant and
equipment, depreciation of property, plant and equipment, fair value
loss on biological assets, property, plant and equipment written off and
fair value loss on derivative financial instruments. Excluding the
non-cash and provisional items, the Group underlying profit was RM1.53
million for financial year 2019.
3. IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (million): ~773.6 million in 2019 annual report, this is a medium revenue company.
b. SHARE PRICE: from 2018-2020, share price has been decreasing from around RM1.50 to RM0.75
c. EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from -29.66 to 12.5sen
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 15.8 million, around 1% of total assets.
4. IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND YIELD: in 2019 financial year, KWANTAS did not declare a dividend payout to shareholders.
b. CONSISTENCY: the dividend payout was not consistent, there
was no dividend paid to shareholders in last five years (2015-2019)
except for 2015.
c. DIVIDEND PAYOUT RATIO: N/A
5. IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN ON EQUITY (ROE): in 2019 financial year, KWANTAS
achieved a low return of shareholders’ equity, at -8.9%, due to making
losses.
b. COST-TO-INCOME RATIO: N/A
6. OTHER INDICATORS:
a. CASH FLOW: cash flow is positive, around RM 39.6 million, equivalent to RM 0.13 per share
b. SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well
supported by institutional investors, there are only 4 institutional
investors at top 30 major shareholders list, including EPF (3.67%) but
not including insurance companies and investment funds. Its major
shareholder are KWAN NGEN CHUNG (30.22%) and KWAN NGEN WAH (29.9%).
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as well as follow up latest update information before making any
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http://louisesinvesting.blogspot.com/2020/01/comments-on-kwantas-corp-berhad-6572.html
