Subur Tiasa Holdings Bhd is an investment holding company. It engages in the extraction and sale of logs, manufacturing plywood, particleboard and sawn timber. The Timber segment consists of upstream logging, reforestation and downstream manufacturing of timber products. It contributes the majority of the group's total revenue. Logging and a forestation contribute about one-third of the group's revenue. India is a major export market for this segment. The company has further expanded its oil palm plantation and are looking to increase the share of revenues from oil palm operations. Currently the company has already planted 13,000 hectares of oil palms and continues to plant more and more.
If you examine the CPO price chart carefully, you can see that CPO price had been below Rm 2,500 per ton for many years. CPO price has started to go up about 2 years ago and has been going up to historical record high price of Rm 7,000 per ton as shown on the CPO price chart above.
Due to the rising CPO price, all plantation companies have reported increasing profit in the last 2 or more quarters and will continue to reported increasing profit.
Plantation stocks comparison update
The table below shows the names of 11 plantation stocks, last traded prices, latest reported EPS, 4 X EPS and PE ratio based on 4 X EPS, assuming EPS is the same for the next 3 quarters. Of course, all plantation companies will be making increasing profit in the next few quarters.
Subur Tiasa is selling at the lowest PE ratio as shown on the table below.
|
Name |
Price |
EPS |
EPS X 4 |
Price÷EPS |
|
Subur |
Rm 1.98 |
16.15 |
64.60 |
3.1 |
|
Cepat |
Rm 1.08 |
7.74 |
30.96 |
3.5 |
|
SOP |
Rm 5.71 |
36.44 |
Rm1.46 |
3.9 |
|
MHC |
Rm 1.32 |
7.41 |
29.6 |
4.5 |
|
Jaya Tiasa |
Rm 1.01 |
5.28 |
21.1 |
4.8 |
|
Sarawak Pl |
Rm 2.71 |
11.66 |
46.6 |
5.8 |
|
Hap Seng |
Rm 2.84 |
11.79 |
47.2 |
6.0 |
|
Ta Ann |
Rm5.59 |
21.8 |
87.2 |
6.4 |
|
Boustate Pl |
Rm 1.06 |
3.80 |
15.2 |
6.9 |
|
United Pl |
Rm 15.8 |
37.16 |
Rm1.49 |
10.6 |
|
KLK |
Rm26.7 |
55.6 |
Rm2.22 |
12.0 |
Subur Tiasa price chart below is showing up trend, forming a CUP and a handle.
