FIGURE 1: PINEHILL PACIFIC BHD LAST 2 YEARS SHARE PRICE TREND
**analysis based on 2019 annual report.
1. GENERAL INTRO: PINEHILL PACIFIC 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 milling operations.
b. The Group operates oil palm estates in Perak (Malaysia) and Indonesia with a total planted area of 11,446 hectares and total annual fresh fruit bunches (FFB) production of 37,000 MT.
c. The group also operates 1 palm oil mill that produced 7000 MT CPO in 2019.
d. Under current development, the Company sold 3,641 hectares (Perak) of plantations to United Plantations Berhad. Subsequent to the completion of the disposal, the Company is therefore being classifed as an “Affected Listed Issuer”pursuant to Paragraph 8.03A of the Listing Requirements. Being an “Affected Listed Issuer”, the Company is subject to amongst others to regularise its condition within twelve (12) months and to notify the status of its regularisation plan on a monthly basis.
e. The Group recorded revenues of RM16.48 million (including discontinued operation of RM15.98 million) and loss after taxation of RM32.42 million in FY2019. This was attributed to a decrease of FFB and CPO production as well as amortisation cost in the Indonesia operations.
f. Following the disposal of its Teluk Intan plantations, current year prospect of the Company would depend on the performance of its oil palm development project in Indonesia subsidiaries which requires additional investment for infrastructure to facilitate upkeep and harvesting.
3. IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (RM million): 16.48 million as reported in 2019 annual report, this is a very low revenue company.
b. SHARE PRICE: share price increasing from around RM0.20 to RM0.30, then increasing sharply to around RM0.40 by January 2020
c. EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from -19.38 to -7.09 sen, making losses in all of last five 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 0.19 million, around 0.06% of total assets.
4. IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND YIELD: in 2019 financial year, PINEHILL PACIFIC did not declared a dividend payout to shareholders.
b. CONSISTENCY: the dividend payout was not consistent, there was novdividend paid to shareholders in all of last five years (2015-2019).
c. DIVIDEND PAYOUT RATIO: N/A
5. IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN ON EQUITY (ROE): in 2019 financial year, PINEHILL PACIFIC reported a low return of shareholders’ equity, at -18.19%.
b. COST-TO-INCOME RATIO: N/A
6. OTHER INDICATORS:
a. CASH FLOW: cash flow is positive but very low, around RM 0.19 million, equivalent to RM 0.001 per share
b. SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well supported by institutional investors, there are 5 institutional investors at top 30 major shareholders list, not including insurance companies and investment funds. Its major shareholders are Allgrow Capital (M) Sdn Bhd (22.78%) and Puan Sri Datin Vivienne Ketheeswaran (9.55%).
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