Hap Seng Plantations

Hap Seng Plantations

Postby winston » Thu Jan 07, 2021 10:33 am

not vested

Hap Seng Plantations (HAPL MK/BUY/Target: RM2.70).

We like HAPL as the company usually sells its products at spot prices.

HAPL’s selling prices are also always higher than its Sabah peers as the former gets a price premium for its sustainability certifications.

Source: UOBKH
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Re: Hap Seng Plantations

Postby winston » Tue Mar 02, 2021 10:48 am

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Hap Seng Plantations – BUY

Maintain BUY and target price of RM2.70, based on based on 15x 2021F PE, or -1SD to its 5-year mean.

The dividend yield for HAPL is at 5-6%, which is higher than the plantation peers where most of them have a dividend yield of about 2-3%.

We like the stock for its higher ASP as compared with its peers mainly due to its commitment to sustainability.

With the CPO prices uptrend since Oct 20, we expect HAPL to continue to
leverage on the high CPO prices and production recovery in 2021.

HAPL also has a high correlation towards CPO prices at 0.81x.

Share Price Catalyst
Strong earnings in the upcoming quarters where the CPO price has been trading
above RM3,000/tonne since Oct 20.

Source: UOBKH
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Re: Hap Seng Plantations

Postby winston » Wed Sep 08, 2021 4:21 pm

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Hap Seng Plantations could also be a privatisation target as it trades at an attractive EV per planted ha of RM37,800, price-book value of 0.9x and has a net cash of 32 sen per share, said Maybank IB.

It added that Hap Seng Consolidated last week raised its stake in Hap Seng Plantations to 74.9% by acquiring an additional 120 million shares from Innoprise Corp Sdn Bhd via a direct business transaction for RM264mil.

Source: The Star
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Re: Hap Seng Plantations

Postby winston » Wed Sep 08, 2021 9:41 pm

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Aug 31, 2021

An attractive proxy for the CPO price rally

We expect HSP to enjoy stronger earnings in 3Q21F, driven by higher output.

There is a potential upside of a RM5.6m tax credit for our FY21F earnings.

We like HSP as it trades at a low EV/ha of RM37k/ha and its share price is
supported by a 5.7% FY21F dividend yield.

TP: RM 2.35

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 6E4BE9C550
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Re: Hap Seng Plantations

Postby winston » Wed Sep 08, 2021 9:56 pm

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june 3, 2021

Hap Seng Plantations (HAPL MK)
Robust Earnings Expected With Potential Record-high CPO ASP Since Listing


We expect HAPL to achieve robust earnings in 2Q-3Q21 due to record high CPO ASP,
better production and higher sales volume.

HAPL’s Apr 21 CPO ASP was RM4,200/ tonne and we believe 2Q21 ASP will be the highest since listing.

Further, HAPL will receive a tax incentive of RM5.6m in 2H21 from its two biogas plants which would lower its effective tax expense.

Maintain BUY with a target price of RM2.45.

https://research.uobkayhian.com/content ... eda644fa22
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Re: Hap Seng Plantations

Postby winston » Fri May 06, 2022 9:11 am

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Hap Seng Plantations (HAPL MK)
One Of The Best Performers Among Plantation Stocks


HAPL’s share price has increased 78% ytd, one of the best performers in the plantation
sector.

It is still our top pick, supported by its high leverage on the high CPO prices
currently.

We estimate 1Q22 net profit at RM70m (1Q21: RM23m, 4Q21: RM75m).

HAPL continues to benefit from high spot prices and better premium for RSPO-certified CPO.

Maintain BUY with a higher target price of RM4.00 factoring in higher CPO selling
prices.

Source: UOBKH

https://research.uobkayhian.com/content ... fdc9459a06
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Re: Hap Seng Plantations

Postby winston » Thu May 26, 2022 7:16 am

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Hap Seng Plantations 1Q net profit more than triples y-o-y amid higher CPO and PK prices

by Izzul Ikram

KUALA LUMPUR (May 25): Hap Seng Plantations Holdings Bhd reported a net profit of RM101.67 million for the first quarter ended March 31, 2022 (1QFY22), up more than three-fold year-on-year from RM29.37 million, mainly on the back of higher average selling prices (ASPs) of crude palm oil (CPO) and palm kernel (PK).

Earnings per share spiked to 12.71 sen from 3.67 sen, the planter’s bourse filing on Wednesday (May 25) showed.

Likewise, its quarterly revenue was carried by ASPs 99.56% higher y-o-y to RM242.15 million from RM121.32 million, but was also supported by a higher sales volume of all palm products.

The ASP of CPO increased by 56.18% to RM6,019 per tonne compared to RM3,854 per tonne a year earlier, while the ASP of PK stood at RM4,702 per tonne, 81.9% higher from RM2,585 per tonne.

CPO sales volume stood at 33,607 tonnes in 1QFY22, while PK sales volume was at 7,319 tonnes — an increase of 28% and 8% respectively compared to a year prior — mainly attributed to higher CPO and PK production and favourable inventory movements.

“CPO and PK production for the current quarter were higher by 6% and 7% respectively, as compared to the preceding year's corresponding quarter, benefitting from higher fresh fruit bunches (FFB) production, as well as higher CPO and PK extraction rates.

“FFB production for [the] current quarter was 5% higher than the preceding year corresponding quarter, with higher FFB yield due to seasonal yield trends and changes in cropping patterns,” it added.

The planter did not declare any dividends for the quarter.

Expect prices to moderate in the second half of 2022, as CPO production enters its peak production cycle, subject to the resolution of the labour shortage situation in Malaysia with the re-entry of migrant workers.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... -pk-prices
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Re: Hap Seng Plantations

Postby winston » Fri May 27, 2022 11:25 am

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A strong start amid rising CPO spot prices

1Q22 core net profit was above expectations due mainly to higher-than expected ASPs for palm products.

We anticipate stronger qoq earnings for 2QFY22F on the back of higher CPO
prices and seasonally stronger FFB output.

We raise our TP slightly to RM2.81 but downgrade HSP to a Hold call as we
reckon the sharp CPO price rally has been baked into its current valuations.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... DEB5EFD613
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Re: Hap Seng Plantations

Postby winston » Tue May 31, 2022 10:19 am

vested

CPO price rally likely priced in

HSP guided for a 14% yoy rise in costs of production (RM256 per tonne
increase) owing to the minimum wage hike and higher manuring costs.

The group is likely to book stronger qoq earnings for 2Q22F on the back of
higher CPO prices and seasonally stronger FFB output.

We retain our Hold call as rising CPO earnings likely priced into valuations.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... B977760704
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Re: Hap Seng Plantations

Postby winston » Wed Jun 08, 2022 8:51 am

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Hap Seng Plantations (HAPL MK)
Short-term Knee-jerk Impact


HAPL’s share price has dropped 6% since 30 May 22 after the disposal of shares by its
holding company Hap Seng Consolidated.

The disposal is meant to increase public spread as Hap Seng Consolidated once held as much as 75% of HAPL’s shares.

We are not concerned about this disposal as it could increase liquidity.

Fundamentally, HAPL remains our top pick as it is the beneficiary of high CPO spot prices and will see a 17% yoy production growth in 2022.

Maintain BUY. Target price: RM4.00.

Source: UOBKH

https://research.uobkayhian.com/content ... c65db7702c
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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