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Overview
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Business Background United Plantation Berhad cultivates and processes palm oil, coconuts, and other plantation crops. Its subsidiaries process and manufacture palm oil until it is ready to be packaged and distributed to customers worldwide. It owns light railway to transport products from palm trees to a handful of mills located on its property. Coconuts can be sold at a young age for drinking purposes, or as mature nuts to help produce milk, powders, and other products. End products produced by the company include cooking oils, ready-to-eat oils, soaps, and specialty fats. The remaining waste water and discharge from mill operations are used to produce fertilizers or shipped to ponds where it can be purified and released to rivers and waterways.
  ooihk899 This year profit and div will probably be the same. Hedge more than 4K/ ton for 191 ton. 27/02/2023 9:33 AM ooihk899 Opps!!! wrong info. correction: It's 153Ton hedge at 4K/ton for less than 12 months, 38ton hedge at 4.31k/ton for more than 12 months 27/02/2023 10:10 AM Sardin Dear All, this year AGM will be held at Dewan Sanmarka Orang India. Any of you attended the AGM before? Was the previous AGM held at the same place? Would you please share some experience in the past AGMs. I might want to attend but it is a bit far from my place. 27/02/2023 11:02 AM ooihk899 I've attended the virtual AGM before. The meeting minutes posted on the website will have all the Q&A in it. Only downside is you get the info much more later. 27/02/2023 11:15 AM Sardin Hi Pinky, you visited the plantation before? Need special request? They arrange the plantation tour every AGM pre-Covid years? Normally they arrange before or after the meeting? 27/02/2023 12:15 PM Peace99 Should UTDPLT branch out into Durian as well? If can cater to Europeans' taste, boy, we will get 10 times the dividends! 27/02/2023 2:51 PM D197btg @Peace99 durian burn cash like incinerator for first 10 years, not so easy. See Ekovest take over of PLS plantation, they will get their handburn. 27/02/2023 5:13 PM Peace99 @D197btg I think if UP wants, it can do as they have research lab, fund and organization. And access to Europe. If mainland Chinese can acquire the durian taste bud recently, why can't the Europeans? It can start small and scale up later. No risk no big gain. 01/03/2023 9:49 AM Sardin Hi Peace99, the most difficult part is when some of the lab workers from overseas cant stand durian smell. And if the top management has to check the quality of the fruit personally to qualify the seedling but fainted due to the unique aroma. It may be a great torture to them. 01/03/2023 10:04 AM ooihk899 Those who plan to attend the AGM may ask the management on diversification into durian plantation. 01/03/2023 11:48 AM Peace99 Hi Sardin haha, may be may be. But there are several orang kita on top management....Yeah, as ooihk899 said, can some one ask at AGM? Isn't good to diversify? UP has great ESG and European connections, lets have a 10 year plan! 01/03/2023 8:40 PM Fabien _the efficient capital allocator Going forward, there are nevertheless 4 factors which must be monitored closely as the development of these will have an impact on the supply and demand fundamentals and thereby price developments going forward. Firstly, the wet weather conditions towards the end of last year together with the resumption of guest worker inflow to Malaysia is expected to help increase palm oil production in 2023 as the nationwide field losses experienced during 2022 will be minimised.In Indonesia production is poised to increase more strongly in 2023 than in 2022 subject to weather patterns normalising. Secondly, the world production of biodiesel including HVO is estimated to further increase by 9% to reach 55.9 million MT in 2023 from the all-time record level of in 2022 of 51.3Million MT. This was and will continue to be propelled by fiscal incentives in the US as well as rising decarbonisation targets in the EU transport sector. In addition, the Indonesian Government’s drive to increase their domestic palm oil consumption through not only food and oleochemical uses but evermore so through the Government supported biodiesel programme compelling all diesel to contain an admixture of up to 35% of palm oil from 1 February 2023 is expected to increase the current usage by 1.3 million MT during the year. Thirdly, the global economic growth sentiments for 2023 are largely negative due to the higher interest rate levels imposed by major central banks to curb inflation, coupled with Russia´s invasion of Ukraine causing much volatility in supply chains around the world. This is expected to dampen demand for vegetable oils from key buying nations. Finally, weather developments will continue to play an important role for production and price directions and must be closely monitored. Whilst the La-Nina has brought dry weather to particularly Argentina and caused a downward revision in the coming soybean crop harvest, the overall South America production is expected to increase to well-above 2022 levels due to larger planting intentions and the recent favourable weather. This is likely to replenish global stocks. 04/03/2023 9:12 PM Fabien _the efficient capital allocator With the world’s population crossing the eight billion mark, the demand for palm oil for edible usage remains firm and growing in markets like India, China, Bangladesh, Turkey and the MPOB is strengthening its research and development activities to increase the usage of palm oil for the production of high value-added products for the export markets. 04/03/2023 9:14 PM nicholas99 Export to Europe: 2022 Grand Total 1,467,013 2021 Grand Total 1,638,999 04/03/2023 10:04 PM Sardin Anyone know the average cost and selling price for one coconut? Couldn't find in the annual report. Appreciate if someone is able to find out. 21/03/2023 4:25 PM Sardin Hi Ooihk899, it could be significant depending on the selling price and cost. If not significant utdplt won't bother to plant. 22/03/2023 12:05 PM Sardin Hi Ahlian, it is definitely more than 10% but less than 15%. According to my research, profit margin could be considerably larger. And yes Ahlian, I also found that coconut price (wholesale price) is very stable over the years. The cost and earnings from the coconut plantation helps to answer many questions in my mind before and that's why I asked. Ahlian, mind to share the average cost of small planter in Malaysia to manage a single Ha of matured palm oil plantation, including labour, fertiliser, fuel and everything? Thanks. 23/03/2023 1:32 PM GS such world class listed company, i wonder why no fund is buying ? https://www.theedgemarkets.com/node/660356 23/03/2023 4:35 PM Sardin Hi Ooihk, because I like to interact with other bright investors and get their thoughts too. And I think this is one of the many purposes to have this forum. 23/03/2023 4:59 PM observatory @GS, many funds own UP. EPF, KWAP, ASM, Aberdeen ... Perhaps they don't actively trade, at least not in large volume. Maybe due to liquidity constraint. 24/03/2023 12:45 AM observatory @Sardin, they produce 6 to 8 million coconuts a month. So <100m a year. I don't know their ASP. But I can get RM3 coconut from the roadside. Wholesale price should be much lower. Multiply the two you get a ballpark figure. Unless UP coconuts are very different from the roadside coconuts, I guess revenue is less than 10% of FY22 revenue at RM2.5b. Besides, if not mistaken, UP will have to list coconut plantation as a separate segment from plantation segment in the Segmental Information if revenue exceeds 10%. Actually I also have a coconut question. Why is production output stagnant or even decline? 24/03/2023 12:50 AM ooihk899 They also faced worker shortage for the last two year, they may use some of the coconut plantation's worker to support the palm operation. This might be one the reason why coconut output is declining. 24/03/2023 10:06 AM Sardin Hi Observatory, cant expect production output increase because the matured planted area of coconut slightly reduced. Total planted area however remains the same. 24/03/2023 10:07 AM ooihk899 Please read the AGM meeting minutes. What happen to ppl nowaday. Just want everything handed to them in a silver platter. Haiz... 24/03/2023 6:45 PM Sardin Actually I did read the minute before I posted my question. So please don't simply comment. Not only that, I did attend the AGM and asked a few questions. 27/03/2023 12:21 AM Sardin So you should instead appreciate that when you read the minute, if you really did read it. 27/03/2023 12:22 AM ooihk899 Opps, my bad, maybe it's mention in year 2021. The 2021 AGM meeting minutes is not shown in website. You can write to them and ask. I attended the both AGM in 2021 n 2022. In one of the meeting the CEO did mention about it. Nation average is 8 ha/worker, UP is 12ha. 27/03/2023 10:33 AM ooihk899 Also, their coconut price selling price is mention in all the AR except year 2022 is being left out or maybe misprint. 27/03/2023 10:37 AM GS Online Questions 3 https://unitedplantations.com/wp-content/uploads/2021/05/Minutes-of-AGM-22-April-2021-.pdf 27/03/2023 10:44 AM Sardin Hi Ooi & GS, thanks for the info. Then here are my findings/question: 1. Sime Darby said they now 1 worker for 15 Ha and want to push up to 17 Ha. Quite unbelievable as they are not so profitable. https://www.theedgemarkets.com/node/658064 2. If we sum up the number of guest worker in Malaysia and PTSSS (3231 + 1151 = 4382) divide by matured planted area for both palm oil and coconut plantation (42789 + 3847 = 46636 Ha) give us 9.4 Ha, which is less than 12 Ha. That means, coconut plantation is more labour intensive than palm oil plantation. 27/03/2023 12:19 PM Sardin Hi Pinky, I think probably because initially the profitability of palm oil plantation is higher than coconut plantation and it takes time to switch more back to coconut and the newly planted area should be close to the existing estate in order to be cost effective. Also, if coconut requires more labour it also discourage the company to do so when in the past years facing labour shortage. 27/03/2023 12:30 PM Sardin Hi Ooi, ya they missed out coconut selling price for 2022. I tried to ask a local planter here they say wholesale price is RM 1.50 so probably the same or higher for UTDPLT as the quality might be higher and more bargaining power as a much bigger supplier. Of course I could write to them but I don't think they bother to answer because I tried to ask other questions before but received no reply. Maybe I didn't buy much enough of the shares. :) 27/03/2023 12:38 PM ooihk899 Sardin, I wrote to them twice, if memory serve me right, it's the commercial dir who replied. response very fast.. Regarding ha/worker, there are workers in R&D n palm oil mill too. No need to calculate yourself. the figure given during AGM should be reliable. They are not like Sime Darby, dare not even provide yield info in their AR. Can you believe these guys. 27/03/2023 5:51 PM ooihk899 UP sold coconut at 1.24 in 2021, so 1.5 is reasonable. Most probably the soil is not suitable to for palm oil, that's why coconut is planted. When West coast highway start operation, the value of Pantai Remis coconut plantation will skyrocket. 27/03/2023 5:57 PM  | |
