KUALA LUMPUR: CIMB Equities Research is maintaining its Trading Buy call on the Malaysian PLANTATION [] sector due to its bullish view for the crude palm oil (CPO) price prospects in the near term.
It said on Thursday, Nov 11 it favoured Kuala Lumpur Kepong for its strong fresh fruit bunches (FFB) output growth prospects and exposure to rubber prices.
"We also like Sime Darby for the potential improvement in the subpar yields from its existing estates as well as the potential sale of assets due to the group's ongoing restructuring following the appointment of a new acting CEO," it said.
CIMB Research said Hap Seng Plantations remains a Trading Buy for its cheap valuations and strong dividend yields.
However, it remained Neutral on IOI Corp due to its slower FFB output growth prospects stemming from its ageing estates.
As for Genting Plantations which had outperformed its peers, it believed the market has priced in the favourable CPO price prospects.
"Given the stronger-than-expected surge in CPO prices, we are likely to upgrade our target prices for all the Malaysian planters when they release their results," it said.
Certain plantation stocks had recorded high PE and these have reflected fairly valued in their present prices.
ReplyDeleteKLK PE 38.5 Price 22.10
GENP PE 28.3 Price 8.80
Kulim PE 27.82 Price 12.74
Umcca PE 22.37 Price 7.09
Kseng PE 16.19 Price 6.75 ( announced bonus 1 for 2)* This stock has yet to reflect its actual price when its land bank is still valued at its old price without talking about its 1.0 B reserves , zero gearing , gain from sale of Parkway etc. The many positive reports have indicated that this stock may hit more than RM 17.00 if it were to have high PE just like KLK etc. Given time ,do hope this stock can perform just like others.
Is there any truth that kseng is undervalued ?
ReplyDeleteSome analysts put the TP at RM 10-20 ? Presently is trading RM 6.42 or lower ? Is there any positive leads for this stock ? When will be the x-date for bonus ? Why take so long to disclose? Why the co keep on selling the treasury shares just to suppress its price and hoping to buy back at a lower price?
Kseng EPS is 138 cts for year ending 31/12/2010 due to an extraordinary sale of Parkway Medical. So much profit is with the mother co? Do you expect this 27/28 April 2011's annoucement will ultimately disburse the extraordinary profit under special dividend? Someone is hoping that at least RM 1.00 can be easily given out due to its huge cash reserve????
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