Koon Yew Yin 20 May 2022
Due to shortage of workers all plantation companies could not produce more FFB in the latest quarter ending March than previous quarter ending December.
As a result, CPO price has been going up rapidly. Another reason for the rise in CPO price is due to the export restriction of Sunflower oil from Ukraine and Russia. Ukraine and Russia are producing about 80% of the Sunflower oil in the world.
Despite the record CPO price, all plantation companies could not report higher profit due to shortage of workers. However, the situation has changed as Malaysia is re-opening of international borders on 1st April 2020 as you can see the announcement below.
MALAYSIA – RE-OPENING OF INTERNATIONAL BORDERS ON 1 APRIL 2022. we refer to the press release issued by the Ministry of Health (MOH) dated 24 March 2022 where the Government announced the reopening of Malaysia’s International borders for travellers from all countries, effective 1 April 2022.
Investors must look ahead to make more money. Clever investors should take advantage to buy plantation stocks especially Subur Tiasa which has been dropping rapidly as shown on the price chart below.
https://koonyewyin.com/2022/05/20/plantation-companies-will-have-better-profit-growth/
