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Sector                 : Plantation
Sub Sector         : Plantation
Part II –11 – 20 palm oil companies in term of 2018 revenue
Part III – 21 – 30 palm oil companies in term of 2018 revenue
Part IV – Summary of comparison based on 2018
11 - 20 palm oil companies listed in Bursa base on 2018 revenue are:


Competitiveness
Market shares is an importance indicator to determine the competitiveness of the company. Total revenue make from palm oil plantation and refinery for the year 2018 is RM 60,890,571,870.00.
COMPANY
REVENUE (OIL PALM) 2018 (RM)
MARKET SHARE (%)
KWANTAS (6572)
769,138,000
1.26
IJMPLNT (2216)
747,217,000
1.23
BPLANT (5254)
582,886,000
0.96
TAANN (5012)
578,991,011
0.95
KRETAM (1996)
508,994,000
0.84
JTIASA (4383)
457,299,000
0.75
HSPLANT (5138)
390,756,000
0.64
FAREAST (5029)
379,078,547
0.62
RSAWIT (5113)
335,193,997
0.55
MHC (5026)
315,754,166
0.52
Dependency
Many palm oil companies had other investment such as properties development, logistic, sugar, manufacturing and etc which is not subjected to the price change on the palm oil. Table below shown the dependency of palm oil for each company
COMPANY
PERCENTAGE OF REVENUE FROM PALM OIL (%)
KWANTAS (6572)
99.72
IJMPLNT (2216)
100.00
BPLANT (5254)
99.79
TAANN (5012)
59.86
KRETAM (1996)
99.99
JTIASA (4383)
65.76
HSPLANT (5138)
100.00
FAREAST (5029)
100.00
RSAWIT (5113)
98.97
MHC (5026)
95.35
From the table TAANN and JTIASA had less than 80% of their revenue from palm oil. Other businesses which they are involve;
1) TAANN – Timber products, Property Development
2) JTIASA – Log Trading, Manufacturing Timber Products, Transportation

Operational

For operational, operating income of the companies had been review. Operating income determine how much the companies’ revenue had turn into profit after reduction cost of operating expense .

Besides operating income, operatingmargin ratio is also calculated. Companies with higher operating margin ratio have more probability to survive in today financial crisis.
COMPANY
2018 OPERATING INCOME (RM)
2018 OPERATING MARGIN RATIO
KWANTAS (6572)
(53,498,000)
-6.96
IJMPLNT (2216)
97,326,000
13.03
BPLANT (5254)
(22,114,000)
-3.79
TAANN (5012)
134,031,876
23.15
KRETAM (1996)
(32,661,000)
-6.42
JTIASA (4383)
24,225,000
4.38
HSPLANT (5138)
37,151,000
9.51
FAREAST (5029)
82,711,036
21.82
RSAWIT (5113)
(159,050,472)
-47.45
MHC (5026)
29,160,682
8.90
KWANTAS, BPLANT, KRETAM and RSAWIT would be disqualified to analyst further because they having negative operation income. TAANN and FAREAST had high operation margin ratio in 2018.
Sustainability

For the sustainability of the business, debt of the companies is being review. There are two criteria to look at interest coverage ratio, which is used to determine how easy the companies able to pay off the interest of outstanding debt and debt ratio.
COMPANY
2018 INTEREST COVERAGE RATIO
2018 DEBT RATIO
KWANTAS (6572)
-2.18
0.37
IJMPLNT (2216)
2.09
0.40
BPLANT (5254)
-0.60
0.37
TAANN (5012)
5.25
0.39
KRETAM (1996)
-6.84
0.25
JTIASA (4383)
0.45
0.44
HSPLANT (5138)
No Financial Cost
0.21
FAREAST (5029)
18620.22
0.09
RSAWIT (5113)
-6.36
0.6
MHC (5026)
4.09
0.30
HSPLANT and FAREAST had no financial cost or low financial cost in 2018.


Summary of Industry Comparison


http://ivkls.blogspot.com/2020/05/industry-comparison-palm-oil-part-ii.html

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