根据am research的资料，本地的人工费用增加了10%。
但肥料却因为拖后作用(lag)，下跌了。
如果以RM4400(+/-)当作是在一年里的每公顷园丘营运成本，那么，人工就是RM1210（1100 + 10%），肥料是RM1320。剩下的，就由油价和其他平分。
开发成本
ioicorp预计他们在印尼的每公顷开发成本（planting cost），可以创下令人无法置信的RM9800。
也就是说，买了地以后，ioicorp在前面4年（一直到成熟阶段），平均每年只能投入RM2500。
当然，“4年”要扣掉树苗入土时的岁数。
IOI’s planting cost is about US$2,800/ha or RM9,800/ha, which we consider low compared to the average of US$4,000/ha to US$5,000/ha (RM14,000/ha to RM17,500/ ha).
是什么造成如此低的成本，有没有把地价计算进去？
根据我的记忆，orient，ijmplnt，metrok的每公顷种植成本，若不包括地价和提炼设施，都在RM17000-RM20000。
如此低的成本，相信已经不能有灌溉系统了。
【add 1 day later】
翻种成本（replanting cost,不同于开发成本）较便宜，RM8000，假设，夷平是自己操作的。
小园主翻种成本较高，RM12000。
Showing posts with label orient. Show all posts
Showing posts with label orient. Show all posts
18 July 2009
06 June 2009
orient的非种植业务
在上篇博文中（orient holdings的种植） ，我只交代了它的种植业，对于它的非种植业，却只字不提，也没有替orient的股价订价。很多时候，我的博文都有给人一种“虎头蛇尾”的感觉，因为我想给读者自己评估它的价值，我不去影响你的决定。
orient的非种植业，比较“不重要”的，计有：
1）马六甲河流和河流旁的清理美化工作
2）新加坡驾驶学院 Singapore Safety Driving Centre Ltd.
3）associate plantation company : Southern Perak Plantations
5）医疗服务，应该还在筹备
6）Hicom Teck See Manufacturing
7）Hitachi Construction Machinery
8）其他，例如汶莱汽车销售，地产。
比较重要的，计有：
15% 本田汽车装配部门和kah motor本田汽车销售。
100% 本田汽车，新加坡独家销售。
可以发现，评估一间公司，比评估一间种植公司难很多，目前的汽车零售的合理价是多少呢？我们可不可以拿（tchong,4405）来比较？如果orient决定让新加坡的汽车部门上市（虽然不可能），合理价又是多少？
以成长阶段来判断，它已是成熟期的公司，如果以“富不过三代”定律视之，还有很久的时间，假设拿督骆清燕还能执行多20年。
orient的成长在近五年来，不是很显著，如果以“小股东的心声”来分析，它唯有三个途径才能突围，1）股息，2）买地和置产，3）加大信贷部。
orient预计在5年内，动用6亿现金物色和扩充20000公顷的油棕，但其实它的实际支出只有45%，相等于2.7亿，因为我相信，这是和boon siew sdn bhd联营的。
2.7亿只是9个月的cash flow而已。
各国的政府都在不停的烧钱，不管是正当的，还是不正当的，货币一定会贬值。
美元不跌的原因是美元债务都被中国认购了。
1960年，世界人口是30亿。美国境内的玉米亩产为60蒲式耳，黄豆亩产24蒲式耳。
1990年，世界人口是50-55亿左右。美国境内的玉米亩产为118蒲式耳，黄豆亩产34蒲式耳。
我们感觉不到货币下跌，是因为我们还没有饥饿感。
boon siew有一间boon siew credit，orient虽然也有自己的信贷部门，如果没有错，这些贷款都是借贷毛里求斯公司的，很少借贷给本地发展商或汽车贷款。
我的意见是如果他不能加以利用这19亿（-5亿债务），他就不是一间好公司，因为我相信“现金为王”的时期已经过去了。
我还是没有很明确的说出他的合理价。
以它目前的价位来看(RM5.2)，低pe选股法，成长股选股法，asset选股法，都不适用。
我自己还算过，如果我拿orient的股票去share margin finance，股息能不能填补margin finance的利息？也不能。
我不想做“鸡肋股”的股东，所以我没有持有。
当你觉得“最近钱很多，不懂怎么用”时，或许才有可能“看看一下”。
orient的非种植业，比较“不重要”的，计有：
1）马六甲河流和河流旁的清理美化工作
2）新加坡驾驶学院 Singapore Safety Driving Centre Ltd.
3）associate plantation company : Southern Perak Plantations
5）医疗服务，应该还在筹备
6）Hicom Teck See Manufacturing
7）Hitachi Construction Machinery
8）其他，例如汶莱汽车销售，地产。
比较重要的，计有：
15% 本田汽车装配部门和kah motor本田汽车销售。
100% 本田汽车，新加坡独家销售。
可以发现，评估一间公司，比评估一间种植公司难很多，目前的汽车零售的合理价是多少呢？我们可不可以拿（tchong,4405）来比较？如果orient决定让新加坡的汽车部门上市（虽然不可能），合理价又是多少？
以成长阶段来判断，它已是成熟期的公司，如果以“富不过三代”定律视之，还有很久的时间，假设拿督骆清燕还能执行多20年。
orient的成长在近五年来，不是很显著，如果以“小股东的心声”来分析，它唯有三个途径才能突围，1）股息，2）买地和置产，3）加大信贷部。
orient预计在5年内，动用6亿现金物色和扩充20000公顷的油棕，但其实它的实际支出只有45%，相等于2.7亿，因为我相信，这是和boon siew sdn bhd联营的。
2.7亿只是9个月的cash flow而已。
各国的政府都在不停的烧钱，不管是正当的，还是不正当的，货币一定会贬值。
美元不跌的原因是美元债务都被中国认购了。
1960年，世界人口是30亿。美国境内的玉米亩产为60蒲式耳，黄豆亩产24蒲式耳。
1990年，世界人口是50-55亿左右。美国境内的玉米亩产为118蒲式耳，黄豆亩产34蒲式耳。
我们感觉不到货币下跌，是因为我们还没有饥饿感。
boon siew有一间boon siew credit，orient虽然也有自己的信贷部门，如果没有错，这些贷款都是借贷毛里求斯公司的，很少借贷给本地发展商或汽车贷款。
我的意见是如果他不能加以利用这19亿（-5亿债务），他就不是一间好公司，因为我相信“现金为王”的时期已经过去了。
我还是没有很明确的说出他的合理价。
以它目前的价位来看(RM5.2)，低pe选股法，成长股选股法，asset选股法，都不适用。
我自己还算过，如果我拿orient的股票去share margin finance，股息能不能填补margin finance的利息？也不能。
我不想做“鸡肋股”的股东，所以我没有持有。
当你觉得“最近钱很多，不懂怎么用”时，或许才有可能“看看一下”。
04 June 2009
orient holdings的种植
虽然orient的市值有27亿，但它却是不被分析员关注的股，原因是它的财务报告不够详细，公关不够开放，没有接受任何研究机构的采访等等。虽然可能有少数的研究机构分析过它，但我猜测他们只是看图说故事而已，相信,最完整的资讯是来自股东大会。
说到已故丹斯里骆文秀，他对慈善事业的付出，和他惨厉的家事形成了强烈的对比。他的二儿子(luo4 jia1 qing4)，于1987年，离奇死于tanjong Bungah别墅中，他和重要人物打的官司，也在1990年结案，很多人相信他的死亡是因为这官司。
1996年，骆文秀其中一女死于癌症。
1999年，luo4 jia1 qing4儿子，公寓坠楼身亡。
骆文秀的大儿子(loh kar bee)，基于“不明原因”，没有执行orient任何职位。
orient由次女拿督骆清燕执行。
orient遭受的挫折是失去honda汽车的马来西亚独家，相信是这个原因，使得orient自闭起来。
截至1Q2009，orient现金扣除债务(net cash)为14.4亿，相等于每股RM2.785的价值。
如果以每年0.50的eps来计算，这相当于它5年的净利。
orient对待现金，和对待大众的态度都是自闭的。
现金以新元占多数，因为orient在新加坡是独家，若以自闭的角度分析，它不可能把现金换成马币，然后派送给马来西亚人。
以上列表所示的是（orient，4006）的闭市价（share）和每股现金（net cash）数据。
因为不能把每一季的net cash输入，为了画图方便，调整一下，使图表平顺些。
从两者趋势来看，orient的股价不是由业绩推动的，不是由股息推动的，而是由现金来推动的，答案可根据下表得到答案。
如果上述说法不能被成立，就可以理解为巧合了，也可以说，它的股价是由kwsp（雇员公积金局）决定的，一方面，和klci（综合指数）具有很紧密的关系。
一个现金状况就可以说了那么多，如果再把什么汽车，政治气候纳入博文，是说不完的。
值得一提的是，orient在q409，囤积了一些存货，这些存货相信是日本的honda公司陷入财务危机时，要求orient买入的，从年报中证实，Assembled motor vehicles的存货突然在一个季度增加了。
以上是我的猜测。
接着下来，就只能对orient的种植活动，加以分析，其余的是说不完的。
上图【红线】部分说明的是orient在印尼和马来西亚园丘的每季园丘成本。
相信在第一季，种植公司都不会大量放肥，原因是第一季不符合施肥条件和经济条件，所以第一季的成本不会高，当然这是不能做准的，只是建立在“一般”基础上。
上图的成本走势，并不能反映种植成本，因为，orient在印尼的提炼厂周围，有很多原本是种胡椒的园主，后来改种油棕，因此他的工厂收购了不少的棕果。（source:年报）
提炼厂的profit margin是个位数，提炼越多，cost也会增加很快，最后变成，它的plantation performance“看起来”不能赚钱。
年尾的提炼活动较多，成本也就跟着高。
2007全年和2008全年，plantation profit分别是179970和108181
08年的业绩逊退，相信是去年第四季(q4【08】 cost:99126 )，stockpile impairment造成的，如果要避免亏损，它必须把一车一车的棕果，拒于门外，拒收，但，这是不可能发生的。
拿九个月来比较。
如果cost只增加50%，不会有问题，因为出口税和肥料的缘故，但，它涨了97%。
是什么原因，使成本从99363，增加到195686？
我的推测原因是plasma and nucleus project
这个project的意义是，由财团建立一座园丘和一座提炼厂，财团以提炼厂作为中心点（nucleus），向周围的小园主（plasma）提供资助和援助（包括肥料供应），提炼厂也需承接这些小园主的棕果。如前所述，提炼活动是high cost的。
根据年报资料，印尼的提炼厂，在2008年，承担了小园主，共131095公吨的棕果，如果以RM500每公吨计算，这是6555万的成本。
在2007年，只承担了小园主68316公吨的棕果，如果算RM400每公吨，成本是2733万。
虽然很牵强的把成本的上升合理化了一些，但还是不能解释成本上升得那么快的原因，唯有放弃。
profit per hectare
如果以23800公顷计算，orient的profit per hectare为RM4202，这比我想象满意，因为我向来对orient的印尼种植不存在幻想，或许今天开始改观。
RM4202，是以平均数（1亿元整），除以23800，得到的。
高兴得太早了
orient的马来西亚园丘面积，和印尼园丘的面积比率，大约为2：11。
马来西亚股权为100%，但印尼园丘的股权却只有45.5%-46.7%。
原因是，这些印尼园丘是由orient holdings和Boon Siew Sdn Bhd，共同联营的，正确的说，是以50.5%:49.5%联营的。
两个园丘的两个控股公司，注册于毛里求斯。
在印尼经营园丘，多数不是100%持有的，如果没错，应该是接近90%。
也就是说，如果orient的种植每年能够取得1.5亿的盈利，flow back回orient的也只有0.79亿。
如果把出口税和公司税列入，能够拿到的不多，就算他0.57亿。
印尼的公司税不是一笔小数目。
0.57亿净利，等于11sen的eps。
如果不注意这些，尤其是印尼和sarawak，是很容易把园丘价值错误估计的。
其实市场是“大智若愚”的，orient被认为“埋没”了，事实上很可能是你的错觉和你的高傲造成的。
一个指数成分股是不可能被埋没的。
“埋没”的“低估”不一样。
埋没是你对市场的“藐视”和一厢情愿的看法，低估则是买或卖时作出的决定（当然也包括了错误的决定）。
根据档案记录，orient预计花费5-6亿，扩充20000公顷的种植面积，这等于平均每公顷成本RM25000-RM30000，如果和“佼佼者”比较，贵了，但如果以非种植公司定位，是合理的。
说到已故丹斯里骆文秀，他对慈善事业的付出，和他惨厉的家事形成了强烈的对比。他的二儿子(luo4 jia1 qing4)，于1987年，离奇死于tanjong Bungah别墅中，他和重要人物打的官司，也在1990年结案，很多人相信他的死亡是因为这官司。
1996年，骆文秀其中一女死于癌症。
1999年，luo4 jia1 qing4儿子，公寓坠楼身亡。
骆文秀的大儿子(loh kar bee)，基于“不明原因”，没有执行orient任何职位。
orient由次女拿督骆清燕执行。
orient遭受的挫折是失去honda汽车的马来西亚独家，相信是这个原因，使得orient自闭起来。
截至1Q2009，orient现金扣除债务(net cash)为14.4亿，相等于每股RM2.785的价值。
如果以每年0.50的eps来计算，这相当于它5年的净利。
orient对待现金，和对待大众的态度都是自闭的。
现金以新元占多数，因为orient在新加坡是独家，若以自闭的角度分析，它不可能把现金换成马币，然后派送给马来西亚人。
以上列表所示的是（orient，4006）的闭市价（share）和每股现金（net cash）数据。
因为不能把每一季的net cash输入，为了画图方便，调整一下，使图表平顺些。
从两者趋势来看，orient的股价不是由业绩推动的，不是由股息推动的，而是由现金来推动的，答案可根据下表得到答案。
如果上述说法不能被成立，就可以理解为巧合了，也可以说，它的股价是由kwsp（雇员公积金局）决定的，一方面，和klci（综合指数）具有很紧密的关系。
一个现金状况就可以说了那么多，如果再把什么汽车，政治气候纳入博文，是说不完的。
值得一提的是，orient在q409，囤积了一些存货，这些存货相信是日本的honda公司陷入财务危机时，要求orient买入的，从年报中证实，Assembled motor vehicles的存货突然在一个季度增加了。
以上是我的猜测。
接着下来，就只能对orient的种植活动，加以分析，其余的是说不完的。
上图【红线】部分说明的是orient在印尼和马来西亚园丘的每季园丘成本。
相信在第一季，种植公司都不会大量放肥，原因是第一季不符合施肥条件和经济条件，所以第一季的成本不会高，当然这是不能做准的，只是建立在“一般”基础上。
上图的成本走势，并不能反映种植成本，因为，orient在印尼的提炼厂周围，有很多原本是种胡椒的园主，后来改种油棕，因此他的工厂收购了不少的棕果。（source:年报）
提炼厂的profit margin是个位数，提炼越多，cost也会增加很快，最后变成，它的plantation performance“看起来”不能赚钱。
年尾的提炼活动较多，成本也就跟着高。
2007全年和2008全年，plantation profit分别是179970和108181
| 2007-12month | 2008-12month | |
|---|---|---|
| revenue | 316849 | 402993 |
| cost | 136879 | 294812 |
| operating profit | 179970 | 108181 |
08年的业绩逊退，相信是去年第四季(q4【08】 cost:99126 )，stockpile impairment造成的，如果要避免亏损，它必须把一车一车的棕果，拒于门外，拒收，但，这是不可能发生的。
拿九个月来比较。
| 2007-9month | 2008-9month | |
|---|---|---|
| revenue | 215046 | 349245 |
| cost | 99363 | 195686 |
| operating profit | 115683 | 153559 |
如果cost只增加50%，不会有问题，因为出口税和肥料的缘故，但，它涨了97%。
是什么原因，使成本从99363，增加到195686？
我的推测原因是plasma and nucleus project
这个project的意义是，由财团建立一座园丘和一座提炼厂，财团以提炼厂作为中心点（nucleus），向周围的小园主（plasma）提供资助和援助（包括肥料供应），提炼厂也需承接这些小园主的棕果。如前所述，提炼活动是high cost的。
根据年报资料，印尼的提炼厂，在2008年，承担了小园主，共131095公吨的棕果，如果以RM500每公吨计算，这是6555万的成本。
在2007年，只承担了小园主68316公吨的棕果，如果算RM400每公吨，成本是2733万。
虽然很牵强的把成本的上升合理化了一些，但还是不能解释成本上升得那么快的原因，唯有放弃。
profit per hectare
如果以23800公顷计算，orient的profit per hectare为RM4202，这比我想象满意，因为我向来对orient的印尼种植不存在幻想，或许今天开始改观。
RM4202，是以平均数（1亿元整），除以23800，得到的。
高兴得太早了
orient的马来西亚园丘面积，和印尼园丘的面积比率，大约为2：11。
马来西亚股权为100%，但印尼园丘的股权却只有45.5%-46.7%。
原因是，这些印尼园丘是由orient holdings和Boon Siew Sdn Bhd，共同联营的，正确的说，是以50.5%:49.5%联营的。
两个园丘的两个控股公司，注册于毛里求斯。
在印尼经营园丘，多数不是100%持有的，如果没错，应该是接近90%。
也就是说，如果orient的种植每年能够取得1.5亿的盈利，flow back回orient的也只有0.79亿。
如果把出口税和公司税列入，能够拿到的不多，就算他0.57亿。
印尼的公司税不是一笔小数目。
0.57亿净利，等于11sen的eps。
如果不注意这些，尤其是印尼和sarawak，是很容易把园丘价值错误估计的。
其实市场是“大智若愚”的，orient被认为“埋没”了，事实上很可能是你的错觉和你的高傲造成的。
一个指数成分股是不可能被埋没的。
“埋没”的“低估”不一样。
埋没是你对市场的“藐视”和一厢情愿的看法，低估则是买或卖时作出的决定（当然也包括了错误的决定）。
根据档案记录，orient预计花费5-6亿，扩充20000公顷的种植面积，这等于平均每公顷成本RM25000-RM30000，如果和“佼佼者”比较，贵了，但如果以非种植公司定位，是合理的。
06 April 2009
R.E.A. holdings plc
besides bourse in malaysia,singapore, and indonesia, still have a small numbers of oil palm player list in london stock exchange. one of the dig out gem(contrary to hidden gem) is NBPOL (subsidiary of kulim bhd), other one is tiny player-Narborough Plantations PLC (Rview related company).
apart from above, let me introduce a bright star oil palm player listed in London Stock Exchange.
R.E.A. Holdings plc is indonesia-based plantation company ,80's in North Sumatra , in 1989, exit North Sumatra entirely , and start a new life in East Kalimantan.
in year 2007, R.E.A. made a extremely well in their plantation performance make all the bolehland planter jealous.
source from R.E.A. annual report
Ioi corporation's selected figure from july cy03 to june cy08
from the comparison above, no one win in this struggle, and remind that the results of extraction rate is in line with overall collected crop, but coincidentally the milling scale of them are same, just marginally enough cater to own use.
according to the R.E.A management prudent forecast, ffb production target to 421000tons in year 2008 . and yes, this target was conclusively achieved in the 1st half of 2008 report(1H08) released in the end August of 2008, totalled to 231120tons on the half way, even though this is negate by periodic low yield factor, undoubtedly, the full year target is achievable with no sweat.
after i work out some comparison, found that the "profit per hectare" from R.E.A. make twice money than some Bolehland companies.
the following is the figure of plantation segment from IOI Corporation which is the best plantation company widely known.
The figure is based on calander year ,not fiscal year.
currency is MYR (000)
the above profit is arisen from operating performance before(exclude) taxation ,financing cost, other income, exception income ,and unallocated expenses (i should place some but no idea) , and after(include) marketing and administration expenses.
i will make the same with R.E.A.
the above figure of "Net gain from revalued inventory" is not allowed in malaysia accounting standard (write profit in advance), hence i don't take in comparison, there is no denying that this is handicap game for R.E.A , if R.E.A able to clear inventory, you can write back the gain.
the REA is above 600pence made on May 2008.
compare to today, the price quote at 255.50p.
the number of ordinary shares is 32,574,000, which represent to USD123.533 millions in mkt cap, after deducting 30% tax by indonesia and deducting small amount of preference share dividend, R.E.A still able to trade low at 3.79 pe ratio (based on conservative forecast eps of 1 US dollar in year 2008.)
is it truth?
R.E.A. aggresively expand land in recent year, thought that the completion of acquisition of two estate made in July 2008 should believed a overcharging deal compare to the CPO prospect at that time, but this is all my conjecture.
another issue should pay close attention is feasibility of venturing into coal milling business schemed by management.
at least we can prove how R.E.A holdings playing well in estate work, this is ironic fable for the incompetent company those who bitterly retreat from indonesia such as boustead holdings, they are distorting and evasive ,too many excuse for their behaviour.
i suppose some of the malaysian company overcharge their cost in venture into indonesia, such as umcca(but project about), orient holdings, asiatic, and chintek-nsop JV.
apart from above, let me introduce a bright star oil palm player listed in London Stock Exchange.
R.E.A. Holdings plc is indonesia-based plantation company ,80's in North Sumatra , in 1989, exit North Sumatra entirely , and start a new life in East Kalimantan.
in year 2007, R.E.A. made a extremely well in their plantation performance make all the bolehland planter jealous.
| year | 2007 | 2006 | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|
| ffb/hectare | 29.6 | 25.5 | 23.8 | 22.4 | 16.8 |
| extraction % | 23.7 | 23.2 | 23.4 | 24.3 | 24.9 |
| - | |||||
| mature | 13080 | 13080 | 13085 | 13142 | 13234 |
| Immature | 13328 | 11814 | 5250 | 3000 | 0 |
| - | |||||
| ffb produce | 393217 | 334076 | 313355 | 293883 | 222713 |
source from R.E.A. annual report
Ioi corporation's selected figure from july cy03 to june cy08
| fiscal year | 08 | 07 | 06 | 05 | 04 |
|---|---|---|---|---|---|
| ffb/hectare | 28.54 | 26.72 | 26.93 | 27.57 | 23.91 |
| extraction % | 21.38 | 21.33 | 21.38 | 21.59 | 21.54 |
from the comparison above, no one win in this struggle, and remind that the results of extraction rate is in line with overall collected crop, but coincidentally the milling scale of them are same, just marginally enough cater to own use.
according to the R.E.A management prudent forecast, ffb production target to 421000tons in year 2008 . and yes, this target was conclusively achieved in the 1st half of 2008 report(1H08) released in the end August of 2008, totalled to 231120tons on the half way, even though this is negate by periodic low yield factor, undoubtedly, the full year target is achievable with no sweat.
after i work out some comparison, found that the "profit per hectare" from R.E.A. make twice money than some Bolehland companies.
the following is the figure of plantation segment from IOI Corporation which is the best plantation company widely known.
The figure is based on calander year ,not fiscal year.
currency is MYR (000)
the above profit is arisen from operating performance before(exclude) taxation ,financing cost, other income, exception income ,and unallocated expenses (i should place some but no idea) , and after(include) marketing and administration expenses.
i will make the same with R.E.A.
the above figure of "Net gain from revalued inventory" is not allowed in malaysia accounting standard (write profit in advance), hence i don't take in comparison, there is no denying that this is handicap game for R.E.A , if R.E.A able to clear inventory, you can write back the gain.
the REA is above 600pence made on May 2008.
compare to today, the price quote at 255.50p.
the number of ordinary shares is 32,574,000, which represent to USD123.533 millions in mkt cap, after deducting 30% tax by indonesia and deducting small amount of preference share dividend, R.E.A still able to trade low at 3.79 pe ratio (based on conservative forecast eps of 1 US dollar in year 2008.)
is it truth?
R.E.A. aggresively expand land in recent year, thought that the completion of acquisition of two estate made in July 2008 should believed a overcharging deal compare to the CPO prospect at that time, but this is all my conjecture.
another issue should pay close attention is feasibility of venturing into coal milling business schemed by management.
at least we can prove how R.E.A holdings playing well in estate work, this is ironic fable for the incompetent company those who bitterly retreat from indonesia such as boustead holdings, they are distorting and evasive ,too many excuse for their behaviour.
i suppose some of the malaysian company overcharge their cost in venture into indonesia, such as umcca(but project about), orient holdings, asiatic, and chintek-nsop JV.
28 June 2008
Oriental to expand plantation ops
Friday June 27, 2008
Oriental to expand plantation ops
By DAVID TAN
GEORGE TOWN: Oriental Holdings Bhd has drawn up a plan to expand its oil palm plantation business, which also includes a possible listing of the division.
Group chairman Datuk Loh Cheng Yean said the company aimed to increase the plantation size to 60,000ha from 40,000ha now in two to three years.
“Some RM500mil to RM600mil would need to be invested. We are looking at acquiring more oil palm plantations in Asia,” she said after the company's AGM yesterday.
Apart from Malaysia, Loh said the group had oil palm plantations in Indonesia.
In 2007, the group’s plantations produced a record crop of 512,378 tonnes compared with 399,990 tonnes the year before. The yield in Malaysia, however, fell to 92,956 tonnes versus 104,691 tonnes in 2006.
Loh said the drop was expected because the palms suffered slightly from stress due to the preceding year’s high yield, she said.
“With the anticipated higher crude palm oil price in 2008, our plantation sector should enjoy a price-driven boost to earnings.
“The push for biofuel as an alternative energy source by various governments, coupled with higher soybean prices, will benefit the sector,” she said.
For the first quarter ended March 31, the group posted a pre-tax profit of RM132.7mil on revenue of RM1.27bil. That compares with RM88mil and RM1bil respectively a year earlier.
Oriental to expand plantation ops
By DAVID TAN
GEORGE TOWN: Oriental Holdings Bhd has drawn up a plan to expand its oil palm plantation business, which also includes a possible listing of the division.
Group chairman Datuk Loh Cheng Yean said the company aimed to increase the plantation size to 60,000ha from 40,000ha now in two to three years.
“Some RM500mil to RM600mil would need to be invested. We are looking at acquiring more oil palm plantations in Asia,” she said after the company's AGM yesterday.
Apart from Malaysia, Loh said the group had oil palm plantations in Indonesia.
In 2007, the group’s plantations produced a record crop of 512,378 tonnes compared with 399,990 tonnes the year before. The yield in Malaysia, however, fell to 92,956 tonnes versus 104,691 tonnes in 2006.
Loh said the drop was expected because the palms suffered slightly from stress due to the preceding year’s high yield, she said.
“With the anticipated higher crude palm oil price in 2008, our plantation sector should enjoy a price-driven boost to earnings.
“The push for biofuel as an alternative energy source by various governments, coupled with higher soybean prices, will benefit the sector,” she said.
For the first quarter ended March 31, the group posted a pre-tax profit of RM132.7mil on revenue of RM1.27bil. That compares with RM88mil and RM1bil respectively a year earlier.
Oriental plans RM600m plantation expansion
27-06-2008: Oriental plans RM600m plantation expansion
by Regina William
Email us your feedback at fd@bizedge.com
PENANG: Oriental Holdings Bhd is planning to restructure and expand its plantation sector, involving an expenditure of an estimated RM600 million, as part of its long-term strategy to boost its oil palm acreage. The group is also considering listing its plantation arm in the next few years.
Its chairman Datuk Loh Cheng Yean said plans included increasing the present 40,000ha, located in Malaysia and Indonesia, to 60,000ha within the next two to three years. It is expected to involve investments of RM600 million.
“Most of our expansion will be focused in Indonesia. We are going to increase our acreage for oil palm both in Malaysia and Indonesia as we are doing very well in this sector. Our intention is not only to leverage on the high prices of the raw commodity now but also our expansion is part of our business strategy.
“As a group, this business is ideal for us and since we are also involved in development projects, it augurs well for us,” said Loh after the company’s AGM. He added the company had identified several sites both in Malaysia and Indonesia and negotiations were still underway.
“We are also looking at investing in the plantation industry in other countries in the region as part of our expansion plans in the next few years. Due to our performance in this sector, the group is also contemplating to list the plantation division within the next few years,” Loh added.
The plantation subsidiaries of the group enjoyed a highly profitable year with the Indonesian plantations producing a record crop of 512,378 tonnes in 2007 compared to 399,990 tonnes in 2006. However, in Peninsula Malaysia, total yield for the year amounted to 92,956 tonnes in 2007 compared to 104,691 tonnes in 2006.
The decrease was attributed to the palms suffering stress due to the high yields in 2006 but it was compensated by the higher commodity price averaging RM514 per tonne compared to RM290 in 2006.
The plantation sector is also expected to boost the group’s earnings this year while the push for biofuel as an alternative energy source by goverments coupled with higher soybean oil prices were also expected to benefit this sector.
The group recorded RM4.5 billion revenue in 2007, an increase of 13.9% from RM3.9 billion in 2006 while pre-tax profit was at RM500 million, a 16.6% rise from RM334.1 million in 2006.
by Regina William
Email us your feedback at fd@bizedge.com
PENANG: Oriental Holdings Bhd is planning to restructure and expand its plantation sector, involving an expenditure of an estimated RM600 million, as part of its long-term strategy to boost its oil palm acreage. The group is also considering listing its plantation arm in the next few years.
Its chairman Datuk Loh Cheng Yean said plans included increasing the present 40,000ha, located in Malaysia and Indonesia, to 60,000ha within the next two to three years. It is expected to involve investments of RM600 million.
“Most of our expansion will be focused in Indonesia. We are going to increase our acreage for oil palm both in Malaysia and Indonesia as we are doing very well in this sector. Our intention is not only to leverage on the high prices of the raw commodity now but also our expansion is part of our business strategy.
“As a group, this business is ideal for us and since we are also involved in development projects, it augurs well for us,” said Loh after the company’s AGM. He added the company had identified several sites both in Malaysia and Indonesia and negotiations were still underway.
“We are also looking at investing in the plantation industry in other countries in the region as part of our expansion plans in the next few years. Due to our performance in this sector, the group is also contemplating to list the plantation division within the next few years,” Loh added.
The plantation subsidiaries of the group enjoyed a highly profitable year with the Indonesian plantations producing a record crop of 512,378 tonnes in 2007 compared to 399,990 tonnes in 2006. However, in Peninsula Malaysia, total yield for the year amounted to 92,956 tonnes in 2007 compared to 104,691 tonnes in 2006.
The decrease was attributed to the palms suffering stress due to the high yields in 2006 but it was compensated by the higher commodity price averaging RM514 per tonne compared to RM290 in 2006.
The plantation sector is also expected to boost the group’s earnings this year while the push for biofuel as an alternative energy source by goverments coupled with higher soybean oil prices were also expected to benefit this sector.
The group recorded RM4.5 billion revenue in 2007, an increase of 13.9% from RM3.9 billion in 2006 while pre-tax profit was at RM500 million, a 16.6% rise from RM334.1 million in 2006.
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