Tuesday, January 31, 2012

Chin Teck Plantation 1Q2012

1. 1Q12 net profit down 5.3% YoY to RM15.3m.
2. CPO prices from Sep11-Nov11 averaged at RM2990 or YoY increase of about 2%.
3. Why Chin Teck net profit down 5.3% then? According to the Company announcement, other income is lower this quarter due to forex loss incurred (vs. forex gain in 1Q11) and absence of replanting incentives from MPOB this quarter.
4. Dividend of 16 sen (less 25% tax) was announced, representing 96% dividend payout from its 1Q11 EPS of 16.74 sen. However, this is 11% lower than last year dividend of 18sen.
5. Closing price of RM8.75 yesterday represents historical PE of 10.5x and historical gross dividend yield of 5.5%.