Sector : Plantation
Sub
Sector :
Plantation
With the current benchmark price (July
2020 CPO Futures contact) had plunge below RM 2000 / MT strong support these
week. Let us take a look into Palm Oil Plantation public listed companies in
Malaysia. Not surprising as the world second largest oil palm producer just
behind Indonesia there are well over 40 palm oil plantation companies list on
Bursa Malaysia. We would do comparison for top 30 companies in term of palm oil
related revenue for the year 2018. These comparison would split into 4 parts.
Part I – Top 10 palm oil companies in
term of 2018 revenue
Part II –11 – 20 palm oil companies in
term of 2018 revenue
Part III – 21 – 30 palm oil companies in
term of 2018 revenue
Part IV – Summary of comparison based on
2018
Top 10 palm oil companies listed in
Bursa base on 2018 revenue are:
Competitiveness
Market shares is
an importance indicator to determine the competitiveness of the company. Total
revenue make from palm oil plantation and refinery for the year 2018 is RM 60,890,571,870.00.
|
COMPANY
|
REVENUE (OIL PALM) 2018 (RM)
|
MARKET SHARE (%)
|
|
SIMEPLT (5285)
|
20,521,806,000
|
33.70
|
|
FGV (5222)
|
8,547,271,000
|
14.04
|
|
BKAWAN (1899)
|
7,825,894,000
|
12.85
|
|
KLK (2445)
|
6,250,774,000
|
10.27
|
|
SOP (5126)
|
3,588,490,000
|
5.89
|
|
BLDPLNT (5069)
|
2,183,942,112
|
3.59
|
|
GENP (2291)
|
1,772,766,000
|
2.91
|
|
UTDPLT (2089)
|
1,171,593,000
|
1.92
|
|
KMLOONG (5027)
|
1,075,331,845
|
1.77
|
|
TSH (9059)
|
769,461,000
|
1.26
|
From the table above, Top 5 companies
had 76.75 % of the total market share for 2018.
Dependency
Many palm oil companies had other
investment such as properties development, logistic, sugar, manufacturing and
etc which is not subjected to the price change on the palm oil. Table below
shown the dependency of palm oil for each company
|
COMPANY
|
PERCENTAGE OF REVENUE FROM PALM OIL (%)
|
|
SIMEPLT (5285)
|
98.14
|
|
FGV (5222)
|
63.74
|
|
BKAWAN (1899)
|
41.29
|
|
KLK (2445)
|
42.08
|
|
SOP (5126)
|
99.57
|
|
BLDPLNT (5069)
|
99.99
|
|
GENP (2291)
|
93.17
|
|
UTDPLT (2089)
|
99.87
|
|
KMLOONG (5027)
|
100.00
|
|
TSH (9059)
|
84.88
|
From the table FGV, BKAWAN, KLK had less
than 80% of their revenue from palm oil. Other businesses which they are
involve;
1) FGV
– Sugar Sector, Logistic and Support Sector
2) BKAWAN
– Manufacturing , Property Development
3) KLK
– Manufacturing, Property Development
Operational
For operational, operating income of the companies had been review. Operating
income determine how much the companies’ revenue had turn into profit after
reduction cost of operating expense.
Besides operating income, operatingmargin ratio is
also calculated. Companies with higher operating margin ratio have more
probability to survive in today financial crisis.
|
COMPANY
|
2018 OPERATING INCOME (RM)
|
2018 OPERATING MARGIN RATIO
|
|
SIMEPLT (5285)
|
3,206,847,000
|
15.63
|
|
FGV (5222)
|
(770,283,000)
|
-9.01
|
|
BKAWAN (1899)
|
870,130,000
|
11.12
|
|
KLK (2445)
|
838,908,000
|
10.84
|
|
SOP (5126)
|
165,048,000
|
4.60
|
|
BLDPLNT (5069)
|
(48,487,474)
|
-2.22
|
|
GENP (2291)
|
401,131,000
|
22.63
|
|
UTDPLT (2089)
|
468,724,000
|
35.95
|
|
KMLOONG (5027)
|
157,208,215
|
14.62
|
|
TSH (9059)
|
167,967,000
|
21.83
|
FGV and BLDPLNT would be disqualified to
analyst further because they having negative operation income. In general oil
palm business had high operating margin in 2018 as most of the companies had over
10 % of operating margin, UTDPLNT even had 35.95 % of operating margin.
Sustainability
For the sustainability of the business,
debt of the companies is being review. There are two criteria to look at
interest coverage ratio ,
which is used to determine how easy the companies able to pay off the interest
of outstanding debt and debt ratio.
|
COMPANY
|
2018 INTEREST COVERAGE RATIO
|
2018 DEBT RATIO
|
|
SIMEPLT (5285)
|
10.93
|
0.45
|
|
FGV (5222)
|
-4.07
|
0.65
|
|
BKAWAN (1899)
|
4.46
|
0.36
|
|
KLK (2445)
|
4.80
|
0.36
|
|
SOP (5126)
|
2.65
|
0.45
|
|
BLDPLNT (5069)
|
-233.30
|
0.09
|
|
GENP (2291)
|
3.66
|
0.45
|
|
UTDPLT (2089)
|
18748.96
|
0.11
|
|
KMLOONG (5027)
|
111.76
|
0.20
|
|
TSH (9059)
|
3.81
|
0.53
|
UTDPLT and KMLOONG had low financial
cost.
Summary of Industry Comparison
https://ivkls.blogspot.com/2020/05/industry-comparison-palm-oil-part-1.html
