FIGURE 1: INNOPRISE PLANTATIONS BERHAD LAST 2 YEARS SHARE PRICE TREND
**analysis based on 2018 annual report.
1. GENERAL INTRO: INNOPRISE PLANTATIONS is one of the main oil palm plantations in Malaysia.
2. NOTABLE POINTS:
a. In 2018 report, main business segments include operation of oil palm plantations and palm oil mills
b. the Group operates 6 oil palm estates in Sabah with a total
planted area of 11,990 hectares and total annual fresh fruit bunches
(FFB) production of 209,936 MT.
c. the group also operates 1 palm oil mill that has a capacity
of 60/90 MT FFB per hour and produced 46,542 MT CPO in 2018.
3. IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (million): ~114.2 million in 2018 annual report, this is a low revenue company.
b. SHARE PRICE: from 2018-2020, share price has been decreasing
from around RM1.20 to RM0.60, then raised to around RM1.00 by end of
2019
c. EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from 1.27 to 8.79sen
d. FUTURE POTENTIAL/PROSPECTS: share price expect to be stable in the next few years
e. CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 22.1 million, around 5% of total assets.
4. IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND YIELD: in 2018 financial year, INNOPRISE declared a
dividend payout of 3 sen per share to shareholders, which amounts to a
dividend yield of 3.09%.
b. CONSISTENCY: the dividend payout was not consistent, dividend
paid to shareholders in last five years (2014-2018) ranged from 0 to 4
sen per share.
c. DIVIDEND PAYOUT RATIO: in 2018, INNOPRISE paid out 151% of its earnings to shareholders in the form of dividend.
5. IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN ON EQUITY (ROE): in 2019 financial year, INNOPRISE achieved a low return of shareholders’ equity, at 3.07%.
b. COST-TO-INCOME RATIO: cost-to-income ratio is high, at 815%.
6. OTHER INDICATORS:
a. CASH FLOW: cash flow is positive but quite low, around RM 1.53 million, equivalent to RM 0.003 per share
b. SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well
supported by institutional investors, there are only 9 institutional
investors at top 30 major shareholders list, not including insurance
companies and investment funds. Its major shareholder are Innoprise
Corporation Sdn Bhd (50.22%) and TSH Resources Berhad (21.94%).
http://louisesinvesting.blogspot.com/2020/01/comments-on-innoprise-plantations.html
