Felda Global Ventures

Re: Felda Global Ventures

Postby winston » Tue Jan 15, 2019 9:11 am

not vested

FGV Holdings Bhd

Key highlights from Chairman’s update

FGV’s chairman has provided an update to shareholders in a letter filed with Bursa Malaysia today.

The letter revealed details of a transformation plan, which includes improving operations, reducing leakages, selling non-core assets and reviewing JVs.

We would turn more positive if these are successfully executed. Retain Hold.

Maintain Hold pending signs of a turnaround

We are positive on the aggressive KPIs set to turn around its operations and performance. If successfully executed, there could be upside to our earnings projection.

However, this is offset by our concerns of higher labour costs, potential provisions for its 50%-investment in Trurich and rightsizing its manpower, as well as rising competition for its sugar refining business.

We maintain our Hold rating and TP of RM0.92 (10% discount to SOP). We will turn more positive when we see evidence of operational turnaround outstripping these concerns. We estimate 4Q core earnings (excluding FV of LLA) remaining weak, in view of the lower average CPO price in
4Q18 of RM1,902/tonne vs. 3Q18’s RM2,192 per tonne.


Source: CIMB

https://brokingrfs.cimb.com/tCanuHMr4_k ... pB-mw2.pdf
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Re: Felda Global Ventures

Postby winston » Fri Mar 01, 2019 3:42 pm

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CIMB Research raises target price for FGV to RM1.10

KUALA LUMPUR (March 1): CIMB IB Research has maintained its “Hold” rating on FGV Holdings Bhd at RM1.12 with a higher target price of RM1.10 (from 92 sen) and said FGV reported a net loss of RM1.08 billion in FY18 due mainly to RM933 million provisions for impairments and receivables and weaker CPO price.

In a note Feb 28, the research house said FGV’s FY18 core net loss of RM269 million, due to weaker results from key divisions, was broadly in line with house expectation.

“Share price recovered from all-time low, pricing in expectations that the new management team will be able to deliver better results. Maintain Hold,” it said.

Source: The Edge

https://www.theedgemarkets.com/article/ ... -fgv-rm110
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Re: Felda Global Ventures

Postby winston » Wed Apr 10, 2019 8:40 pm

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Felda's 2019 debt repayment seen at RM2.5b if loans failed to be restructured

by Wong Ee Lin

KUALA LUMPUR (April 10): The Federal Land Development Authority's (Felda) debt repayment is seen to be at RM2.5 billion in 2019 if loans failed to be restructured, said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.

"In 2018, Felda had to pay RM1.4 billion in debt payment and interest rates to financial institutions," said Mohamed Azmin, while tabling the Felda White paper that was released today.

He highlighted that Felda needs a new and sustainable financial system.

"Felda's current financial position needs to be restructured immediately through loans restructuring with financial institutions and asset rationalisation," he added.

Additionally, Mohamed Azmin said the government has agreed to give a Government Guarantee to enable Felda to restructure its loans with financial institutions to support Felda's business.

"Felda is now in the process of identifying assets not strategic potentially to be liquidated for generating cash flow at the best value," he added.

Source: The Edge

https://www.theedgemarkets.com/article/ ... structured
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Re: Felda Global Ventures

Postby winston » Thu May 30, 2019 7:34 am

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FGV Holdings Q1 net loss due to fall in CPO prices

FGV group CEO Datuk Haris Fadzilah Hassan said: “We are strategically reviewing our downstream businesses and believe that they will continue to grow and contribute positively to FGV’s performance."

KUALA LUMPUR: FGV Holdings Bhd reported net loss of RM3.37mil in the first quarter ended March 31, 2019 compared with a net profit of RM1.12mil a yerar ago, largely due to a sharp decline in crude palm oil (CPO) prices, and lower average selling price in the sugar sector.

FGV, the world's largest CPO producer, announced on Wednesday profit before interest and tax (PBIT) of RM78mil was a 19% decline from RM96mil a year ago.

Revenue fell by 9% to RM3.27bil from RM3.60bil a year ago largely due to a sharp decline in CPO prices and lower average selling price in the sugar sector.

During the quarter, CPO prices averaged RM 1,986 per metric tonne (MT), or 20% lower than the RM2,472 a year ago.

“Despite the sharp drop in prices, revenue did not decline in tandem, mainly because of improved operational performance and lower costs,” it said.

FGV group CEO Datuk Haris Fadzilah Hassan said the plantation operations had been focused on tightening procurement processes involving capital and operating expenditures and implementing new tasking systems and processes for infield workers.

“These efforts are starting to bear fruit,” he said. “Additionally, several other estate and milling transformation initiatives have started delivering results.”

Haris the plantation sector recorded a profit before zakat and tax (PBZT) of RM40mil, up from RM19mil a year ago. This was achieved on the back of a 6% increase in fresh fruit bunch (FFB) production to 1.05 million MT, from 991,000 MT in 1Q2018.

FFB yield increased to 4.38 MT/ha, up by 11% from the 3.96 MT/ha a year ago.

CPO oil extraction rate (OER) improved by 20.76% from 19.75%, and thus, total CPO production increased 14% to 762,000 MT, compared to 670,000 MT previously.

Improved production volumes combined with enhanced operational effectiveness and efficiencies, resulted in lower ex-mill costs in 1Q2019 of RM 1,378 per tonne, 20% lower than RM 1,728 in 1Q2018.

“Additionally, the sector’s improved performance is also attributable to a net reversal of impairments of receivables amounting to RM48mil,” he said.

The group’s downstream business exceeded internal sales targets, primarily due to the implementation of the B10 biodiesel mandate which came into effect in February 2019. As for the palm kernel processing business recorded a higher margin.

“We are strategically reviewing our downstream businesses and believe that they will continue to grow and contribute positively to FGV’s performance,” Haris said.

Source: The Star

https://www.thestar.com.my/business/bus ... 2gXJeUu.99
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Re: Felda Global Ventures

Postby winston » Thu May 30, 2019 7:47 am

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Malaysia's FGV Holdings looks to cut reliance on palm oil

FGV Holdings said it expected crude palm oil (CPO) prices to continue to come under pressure this year from high inventory levels and ample supplies of competing oilseeds like soybean and sunflower.

However, it said Malaysia’s palm oil export tax exemption and a higher biodiesel mandate would help drive demand and reduce stockpiles.

The company’s plantation business made up 76 percent of total revenues in 2018, but it also has operations in logistics and sugar. The plantations arm includes a small amount of revenue from rubber.

Malaysia, the world’s second largest palm oil producer after Indonesia, raised the minimum bio-content that local producers must put in biodiesel to be used in transport to 10% from 7% in February. A 7% blend for the industrial sector will be implemented from July.

Malaysia has also deferred crude palm oil export duties until the end of the year in a bid to improve demand and lower stockpiles, which last year rose to the highest levels in nearly two decades.


Source: Reuters

https://www.reuters.com/article/fgv-res ... SL4N2351F5
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