Sime Darby Plantation

Sime Darby Plantation

Postby winston » Thu Jan 04, 2018 9:00 am

not vested

PublicInvest Research starts coverage of Sime Plantation with Neutral call

KUALA LUMPUR: PublicInvest Research has initiated coverage of Sime Darby Plantation with a Neutral call and a target price of RM5.68.

It said on Thursday the current share has fully reflected the muted crude palm oil (CPO) price performance.

The research house said the target price was based on forward price-to-earnings ratio (PER) of 29 times (15% premium to the industry average of 25 times), which is justifiable.

The factors are the:-
i) sizeable plantation landbank
ii) strong market share in the global palm oil production and
iii) decent average age profile of 12.9 years old.

“We forecast a FY18-FY20 EPS compounded annual growth rate (CAGR) of 4%, taking into account an average CPO price of RM2,500 to 2,550 a tonne.

“The assumption is in line with our neutral stance on the plantation sector and current CPO price performance. Based on our sensitivity analysis, every RM100 a tonne variance in CPO prices, Sime Darby Plantation’s bottomline would vary by 10%-12%,” it said.

Nevertheless, the research house expects a muted CPO price performance this year, which is not likely to bring much cheer to its plantation earnings.

To recap, PublicInvest Research said Sime Darby Plantation, which is formerly part of Sime Darby Berhad, has become a pure play plantation company following the completion of the demerger exercise.

On Nov 30, 2017 Sime Darby Plantation and Sime Darby Property were demerged from Sime Darby Bhd through a share split exercise, where the shareholding remains the same for all the three entities during post-demerger.

“Indeed, the demerger exercise helps lift the plantation valuation from the previous range of 18 times to 20 times to the current level of 28-30 times, which is more reflective of its substantial market share in the palm oil industry. In addition, a purer play plantation stock fetches higher valuation,” it said.

PublicInvest Research pointed out Sime Darby Plantations is the world’s largest oil palm plantation company with a total planted area of 602,454ha, spanning across Malaysia, Indonesia, PNG & Solomon Islands and Liberia.

It produces 2.48 million tonnes of CPO annually or about 4% of total global CPO production.

It is a globally integrated plantation company, involving the entire span of the palm oil value chain, from upstream to downstream activities, R&D, renewables and agribusiness.

It is also involved in rubber and sugarcane plantations as well as cattle rearing. Upstream segment is the biggest earnings contributor to the group, making up more than 96% of the group’s earnings. Downstream segment accounted for the balance.

Source: The Star

https://www.thestar.com.my/business/bus ... pOiPIk8.99
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Sime Plantation

Postby winston » Wed Aug 22, 2018 8:51 am

not vested

Sime Darby Plantation and Cofco sign palm oil deal

Malaysia's Sime Darby Plantation Bhd today sealed a memorandum of understanding with China’s Cofco Group to collaborate on a number of palm oil related ventures.

The pact includes joint research on the health benefits of palm oil, developing capabilities to manufacture specialty oils and fats and establishing joint sales and marketing activities to promote high value differentiated palm products in China, the state news agency Bernama reports.

"Through these initiatives, both SDP and Cofco hope to create greater demand for certified sustainable palm oil and increase trade volumes between the two companies,” SDP said in a statement.

SDP executive deputy chairman and managing director Mohd Bakke Salleh said the company was excited with the prospect of a close collaboration with Cofco, a leading agriproduct merchandiser and food production company in China.

Source: The Standard

http://www.thestandard.com.hk/breaking- ... 0821&sid=2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Sime Plantation

Postby winston » Wed Aug 22, 2018 8:51 am

not vested

Sime Darby Plantation and Cofco sign palm oil deal

Malaysia's Sime Darby Plantation Bhd today sealed a memorandum of understanding with China’s Cofco Group to collaborate on a number of palm oil related ventures.

The pact includes joint research on the health benefits of palm oil, developing capabilities to manufacture specialty oils and fats and establishing joint sales and marketing activities to promote high value differentiated palm products in China, the state news agency Bernama reports.

"Through these initiatives, both SDP and Cofco hope to create greater demand for certified sustainable palm oil and increase trade volumes between the two companies,” SDP said in a statement.

SDP executive deputy chairman and managing director Mohd Bakke Salleh said the company was excited with the prospect of a close collaboration with Cofco, a leading agriproduct merchandiser and food production company in China.

Source: The Standard

http://www.thestandard.com.hk/breaking- ... 0821&sid=2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Sime Darby Plantation

Postby winston » Mon Dec 19, 2022 11:00 am

not vested

2Q22 core results missed expectations
Expect weaker 2H22 core earnings


2Q22 core PATMI missed expectations due to low CPO yields in Malaysia, hurt by the shortage of harvesters, and a net build-up of inventory in Indonesia due to the export ban and restrictions there.

Given sharply lower CPO prices, we expect 2H core PATMI to be weaker HoH.

We cut FY22E core PATMI by 12% mainly on lower output assumptions; FY23E/FY24E
unchanged.

SDPL remains a HOLD with an unchanged RNAV-TP of MYR4.42 on 0.4x RNAV peg.

We prefer KLK MK (BUY, CP: MYR21.76, TP: MYR28.10).


Key risks to the palm oil sector and SDPL are:
(i) weather anomalies resulting in poorer-than-expected output growth;
(ii) lower-than-expected CPO price achieved;
(iii) negative policies imposed by import countries;
(iv) unfriendly policies imposed by the Malaysian, Indonesian, Papua New Guinea and EU governments on upstream or downstream segments;
(v) sharply lower crude oil prices which makes palm biodiesel demand not viable;
(vi) weaker competing oil prices (like soybean and rapeseed); and
(vii) sanctions by key customers following audit findings and assessment by Impactt.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/276056.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Sime Darby Plantation

Postby winston » Mon Dec 19, 2022 11:08 am

not vested

Nov 22, 2022

Sime Darby Plantation Bhd’s net profit fell 34.98% to RM396 million or 5.7 sen per share for the third quarter ended Sept 30, 2022 (3QFY2022), from RM609 million or 8.8 sen per share a year earlier, due to lower earnings from its upstream segment, but partially mitigated by improved downstream operations.

The plantation group’s revenue for the quarter rose 6.54% to RM5.39 billion from RM5.06 billion a year prior, mainly due to increased revenue contributions from both its upstream and downstream segments.

Source: The Edge
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Sime Darby Plantation

Postby winston » Mon Dec 19, 2022 11:28 am

not vested

Nov 22, 2022

Sime Darby Plantation’s 3Q net profit down 35% due to weaker upstream segment

by Izzul Ikram

Revenue for the quarter rose 6.54% to RM5.39 billion from RM5.06 billion.

Overall 8% decline in fresh fruit bunch (FFB) production as well as a lower oil extraction rate resulted in the upstream segment recording a 73% lower recurring profit before income and tax (PBIT) of RM249 million from RM912 million.

Lower profit contribution occurred despite a 13% higher realised average crude palm oil (CPO) price.


Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... am-segment
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am


Return to S to Z

Who is online

Users browsing this forum: No registered users and 3 guests

cron