Industry Comparison – Palm Oil Part II

Sector                 : Plantation

Sub Sector         : Plantation

Part I – Top 10 palm oil companies interm of 2018 revenue

Part II –11 – 20 palm oil companies in term of 2018 revenue

Part III – 21 – 30 palm oil companies interm of 2018 revenue

Part IV – Summary of comparison based on 2018

11 - 20 palm oil companies listed in Bursa base on 2018 revenue are:

11) TSH (9059) - TSH RESOURCE BERHAD
12) KWANTAS(6572) – KWANTAS CORPORATION BERHAD

13) IJMPLNT(2216) – IJM PLANTATION BERHAD

14) BPLANT(5254) – BOUSTEAD PLANTATION BERHAD

15) TAANN(5012) – TA ANN HOLDING BERHAD

16) THPLANT (5112) - TH PLANTATION BHD
17) KRETAM(1996) – KRETAM HOLDINGS BERHAD

18) JTIASA(4383) – JAYA TIASA HOLDING BHD

19) HSPLANT(5138) – HAP SENG PLANTATIONS HOLDINGS BERHAD

20) FAREAST(5029) – FAR EAST HOLDING BERHAD

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 68,524,704,870.00.

COMPANY	REVENUE (OIL PALM) 2018 (RM)	MARKET SHARE (%)
TSH (9059)	769,461,000	1.12
KWANTAS (6572)	769,138,000	1.12
IJMPLNT (2216)	747,217,000	1.09
BPLANT (5254)	582,886,000	0.85
TAANN (5012)	578,991,011	0.84
THPLANT (5112)	519,178,000	0.76
KRETAM (1996)	508,994,000	0.74
JTIASA (4383)	457,299,000	0.67
HSPLANT (5138)	390,756,000	0.57
FAREAST (5029)	379,078,547	0.55

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 (%)
TSH (9059)	84.88
KWANTAS (6572)	99.72
IJMPLNT (2216)	100.00
BPLANT (5254)	99.79
TAANN (5012)	59.86
THPLANT (5112)	100.00
KRETAM (1996)	99.99
JTIASA (4383)	65.76
HSPLANT (5138)	100.00
FAREAST (5029)	100.00

From the table TAANN and JTIASA had less than 80% of their revenue from palm oil. Other businesses which they are involve;

1) TAANN – Timber products, Property Development

2) JTIASA – Log Trading, Manufacturing Timber Products, Transportation

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
TSH (9059)	167,967,000	21.83
KWANTAS (6572)	(53,498,000)	-6.96
IJMPLNT (2216)	97,326,000	13.03
BPLANT (5254)	(22,114,000)	-3.79
TAANN (5012)	134,031,876	23.15
THPLANT (5112)	164,067,000	31.60
KRETAM (1996)	(32,661,000)	-6.42
JTIASA (4383)	24,225,000	4.38
HSPLANT (5138)	37,151,000	9.51
FAREAST (5029)	82,711,036	21.82

KWANTAS, BPLANT, and  KRETAM would be disqualified to analyst further because they having negative operation income. TAANN and FAREAST had high operation margin ratio in 2018.

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
TSH (9059)	3.81	0.53
KWANTAS (6572)	-2.18	0.37
IJMPLNT (2216)	2.09	0.40
BPLANT (5254)	-0.60	0.37
TAANN (5012)	5.25	0.39
THPLANT (5112)	2.45	0.62
KRETAM (1996)	-6.84	0.25
JTIASA (4383)	0.45	0.44
HSPLANT (5138)	No Financial Cost	0.21
FAREAST (5029)	18620.22	0.09

HSPLANT and FAREAST had no financial cost or low financial cost in 2018.

Summary of Stock Reviews

Summary of Industry Comparison