FIGURE 1: JAYA TIASA HOLDINGS BERHAD LAST 2 YEARS SHARE PRICE TREND
**analysis based on 2019 annual report.
1. GENERAL INTRO: JAYA TIASA is one of the main oil palm plantations in Malaysia.
2. NOTABLE POINTS:
a. In 2019 report, main business segments include operation of
oil palm plantations and palm oil mills (71.71%) and timber operations
(28.25%)
b. The Group closed the year with revenue of RM637.7 million, a
24% drop from previous year’s RM841.7 million. There was a Net Loss of
RM265.3 million down from the previous Net Loss of RM69.8 million. The
reason for the widening loss were due to 23% lower CPO selling price,
significant lower sales volume for our timber products, and the
derecognition and reversal of deferred tax assets on unabsorbed tax
losses in loss making subsidiaries amounting to RM80 million recognized
during the year. Loss per share was 27.48 sen compared to 7.34 sen in
the previous year.
c. The Group operates 10 oil palm estates in Sarawak with a
total planted area of 69,589 hectares and total annual fresh fruit
bunches (FFB) production of 1,095,575 MT.
d. The group also operates 4 palm oil mill that has a capacity of 1,782,000 MT per annum.
e. For timber operations segment, log production decreased by
26% following selective harvesting of profitable species and sizes and
amidst ongoing Sustainable Forest Management Certification
implementation. The Group encountered operation challenges such as
appointment of new contractor, mobilizaton of machineries and
transportaton of timbers during transitional period which affected log
production. During the year, India continues to be our largest log
export destination with 43% of export sales. The rest of the market was
shared by Taiwan, Japan and other Asean countries.
3. IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (RM million): 637.4 million as reported in 2019 annual report, this is a medium revenue company.
b. SHARE PRICE: from 2018-2020, share price has been decreasing
from around RM1.00 to RM0.50, then increasing sharply to around RM1.00
by end of Dec 2019
c. EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from -27.48 to 5.6sen
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 53.9 million, around 2% of total assets.
4. IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND YIELD: in 2019 financial year, JAYA TIASA did not declare a dividend payout to shareholders.
b. CONSISTENCY: the dividend payout was not consistent, dividend
paid to shareholders in last five years (2014-2019) ranged from 0 to
1.3 sen per share.
c. DIVIDEND PAYOUT RATIO: N/A
5. IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN ON EQUITY (ROE): in 2019 financial year, JAYA TIASA
achieved a low return of shareholders’ equity, at -22.7%. Last five
years ROE ranged from -22.7 to 3%.
b. COST-TO-INCOME RATIO: N/A
6. OTHER INDICATORS:
a. CASH FLOW: cash flow is negative, around RM -131.4 million, equivalent to RM -0.14 per share
b. SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well
supported by institutional investors, there are only 17 institutional
investors at top 30 major shareholders list, including SOCSO (1.06%) and
few insurance companies and investment funds. Its major shareholder is
Tiong Toh Siong Holdings Sdn Bhd (21.36%).
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only. Readers are encouraged to carry out further research and analysis
as well as follow up latest update information before making any
investment decisions.
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