When Crude Palm Oil price is rising to historical high, it is advisable to buy plantation stock because they have very good profit growth prospect.
The CPO price chart above shows that the CPO price started to go up from Rm 4,000 per ton in Oct 2021 to peak at historical record high of Rm 7.108. In fact, CPO price has been below Rm 2.500 per ton for many years before. The price of crude palm oil (CPO) will continue to trade above RM5,000 per tonne level for the first half of 2022 amid a shortage of edible oil supply – sunflower oil – due to the Russia-Ukraine war, Malaysian Palm Oil Board (MPOB) said.
All plantation companies will report record profit for the quarter ending March 2022 which will be announced before the end of May.
The table below is a comparison of 8 leading plantation stocks which shows that Jaya Tiasa is the cheapest stock to buy, costing Rm 14,100 per hectare or Rm 5,600 per acre. Where can you buy oil palm plantation at Rm 5,600 per acre?
|
Name |
Hectares |
Market Cap. |
MC÷Hectares |
|
Jaya Tiasa |
70,000 |
Rm 984m |
Rm 14,100 |
|
MHC |
11,400 |
Rm 226 m |
Rm 20,000 |
|
Sarawak Pl |
35,000 |
Rm 784 m |
Rm 21,600 |
|
Subur |
13,000 |
Rm 322 m |
Rm 24,600 |
|
Boustead Pl |
75,000 |
Rm 2,240m |
Rm 30,000 |
|
Cepatwawasa |
10,000 |
Rm 315 m |
Rm 31,500 |
|
SOP |
88,000 |
Rm 3,250m |
Rm 37,000 |
|
Hap Seng |
35,000 |
Rm 2,040 m |
Rm 58,300 |
Back ground of Jaya Tiasa
Jaya Tiasa Holdings Bhd is an investment holding company, operates as a timber producer in Malaysia. Business activity of the group is breakdown into various segments which include logs trading, manufacturing, oil palm, and others. Through its subsidiaries, the company manufactures a product such as sawn timber, blockboard, plywood, veneer and related products which are sold in the market of Asia Pacific, Middle East, Europe and Latin America. In addition, the firm also provides air transportation services and it is further engaged in the development of oil palm plantations.
The controlling shareholder is the family of Tan Sri Tiong Hiew King who is one of the richest men in Malaysia.
