A POWERFUL BULL RUN IN PALM OIL STOCKS HAS COMMENCED: CHINTECK FANTASTIC RESULTS SHOW THE WAY, Calvin Tan Research
Hi guys,
We are now at the start of another Bull Trend: this time is Palm Oil stocks (Medical Glove bull run was triggered in April 2020 by Covid 19)
Floods, China Bread Basket of Heilongjiang, floods in maharastha the bread basket of India, drought in Argentina & Brazil have all converged into a Food Crisis & panic buy of Soybean - leading to Palm Oil going into Multi Year High
THE CAUSE OF MEDICAL GLOVE SUPERBULL IS COVID 19
AND THE CAUSE FOR PALM OIL BULL RUN IS LA NINA (TOO MUCH WATER IN CERTAIN PARTS & TOO DRY IN OTHER PARTS - LEADING TO PANIC BUY OF SOY OIL & PALM OIL NOW!)
As a result Palm OIl Prices Nov future has crossed Rm3,400 a tonne today
Since production cost is Rm1600 to Rm1800 (Average Rm1700 Palm Oil selling price is now up 100%)
Let's take a look at Chinteck Plantation result
SUMMARY OF KEY FINANCIAL INFORMATION
31 Aug 2020
|
INDIVIDUAL PERIOD |
CUMULATIVE PERIOD |
||||
|
CURRENT YEAR QUARTER |
PRECEDING YEAR |
CURRENT YEAR TO DATE |
PRECEDING YEAR |
||
|
31 Aug 2020 |
31 Aug 2019 |
31 Aug 2020 |
31 Aug 2019 |
||
|
$$'000 |
$$'000 |
$$'000 |
$$'000 |
||
| 1 | Revenue |
39,155 |
30,055 |
129,813 |
122,120 |
| 2 | Profit/(loss) before tax |
17,725 |
8,128 |
47,241 |
42,221 |
| 3 | Profit/(loss) for the period |
13,715 |
6,524 |
35,987 |
32,103 |
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
13,715 |
6,524 |
35,987 |
32,103 |
| 5 | Basic earnings/(loss) per share (Subunit) |
15.01 |
7.14 |
39.39 |
35.14 |
| 6 | Proposed/Declared dividend per share (Subunit) |
0.00 |
0.00 |
16.00 |
20.00 |
|
AS AT END OF CURRENT QUARTER |
AS AT PRECEDING FINANCIAL YEAR END |
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
7.4400 |
7.3600 |
||
Note: Revenue has increased from Rm30,055,000 to Rm39,155,000 or up 30%
But Profit has gone up from 7.14 sen to 15.01 sen or up a Whopping 111%
Why?
Answer: BECAUSE CPO SELLING PRICES HAVE JUMPED FROM RM2000 TO RM2700
And look again
SUMMARY OF KEY FINANCIAL INFORMATION
31 Aug 2020
CHIN TECK FANTASTIC 111% JUMP IN PROFIT WAS UNTIL 31 Aug 2020 (From June, July & August harvest when CPO was still around Rm2500 to Rm2700)
In September 2020 CPO has reached Rm2900
October 2020 it has crossed RM3000
As of Nov 2020 it has crossed Rm3100 and still powering up & up
So Chin teck September, October & until now 5th Nov 2020 results should be even far better as CPO has gone up another Rm400 a tonne. By Feb 2021 Chin teck will have reported 2 fantastic quarters of growth
When we studied Gloves performance early in April, May, June & July 2020 we expected to see Gloves earning more and more by increasing production an ASP
And we were Chun Chun on Supermax
Smack in the very heart of Glove Super Boom we bought Supermax at Rm1.73 & Sold above Rm18.00 for 1,000% profit
This was what happened in the year 2000 Dot Com Bull when MPI jumped from Rm5.00 to Rm50.00 (Up 1,000%)
Now how high & how far This Cpo Bull Run will depend on these Factors
1) To what extent 5 Major Floods have Wiped Off All China Maize & Soy-bean this year
2) To what extent Typhoon Haishen have wiped off the Corn & Soy Crop of Koreas & Japan
3) To what extent have many Typhoons destroyed the crops in Thailand & Vietnam this year
4) To what extent Hurricane have destroyed the crops of Greece, France & Italy
5) To what extent have Hurricanes wiped off the crops in Mexico & South-east USA
Drought
To what extent Drought has destroyed Soy beans in USA High Plains, Argentina & Brazil
The Cause of La Lina with Its World-wide Floods & Drought have destroyed both wheat, Maize & Soy-bean like never before
Compounded with MCO many nations have banned seasonal harvestors
A HUGE FOOD SHORTAGE HAS COMMENCED
JUST LIKE IN EARLY MONTHS OF MAY, JUNE, JULY & AUGUST THERE WAS AN ACUTE SHORTAGE OF MEDICAL GLOVES
BOTH FAMINE & COVID 19 ARE LIFE THREATENING
WHILE SUPERMAX HAS ALREADY SHOT UP BY MORE THAN 1,000% & IB BANKS ARE STILL NEUTRAL ON PALM OIL STOCKS NOW IS OUR OPPORTUNITY
Since we gave P/E for Medical Gloves shall also assign 30 P/E to Palm Oil Stocks (For Tech bloated stock prices they gave 50 P/E to 200 P/E)
So let's see
This quater Chun Teck earned
15.01 sen
Annualized 15.01 x 4 = 60.04 sen
If P/E 30 then 60.04 x 30 = Rm18.01
WAHAHA!
IS CHIN TECK WORTH RM18.01 (If we assign Top Glove & Supermax with 30 P/E why not Oil Palm Stocks?)
Of course Chin teck at Rm6.07 is still far from Rm18.01 as the market is still skeptical
Skeptical?
YESSS! THAT IS STILL TIME TO BUY
ALL IB BANKS AS OF NOW ARE NEUTRAL (SKEPTICAL) ON PALM OIL STOCKS
SO TIME TO BUY
For Medical Gloves they are now hovering between Optimism & Euphoria (so no longer cheap & so we have taken our profits (and great profits indeed! more than 1,000%)
Will Palm Oil give us another 1,000% profit??
No need
300% to 500% upside will do
Best regards
Calvin Tan Research
Disclaimer
All information provided here should be treated for informational
purposes only. It is solely reflecting author's personal views and the
author should not be held liable for any actions taken in reliance on
information contained herein.
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-11-05-story-h1535654774-A_POWERFUL_BULL_RUN_IN_PALM_OIL_STOCKS_HAS_COMMENCED_CHINTECK_FANTASTIC.jsp
