SARAWAK PLANTATION (SWKPLNT) – a horse with latent potential + the right jockey = a CHAMPION racehorse
SARAWAK PLANTATION (SWKPLNT) – a horse with latent potential + the right jockey = a CHAMPION racehorse Stock symbol: SWKPLNT (5135) Stock price: RM1.99 Market cap: RM555.27mil Shares outstanding: 279.03mil Part 1: A horse with huge latent potential CPO prices have been bullish, recently breaching the RM4,000/tonne mark for the 2 nd time in 3 months. A number of positive factors will continue to drive and support CPO prices. But why are most plantation stocks not rallying? That’s because they are trading at expensive valuations of around 30x P/E with low production growth of only of 3-6%, while some even have negative production growth. However, there is an exception … One rare species. One with double-digit production growth and an attractive single-digit P/E . This jewel is little-known Sarawak Plantation Bhd (SPB) , an undervalued company with explosive earnings growth . SPB is a pure-play Sarawak-based upstream plantation company. As of end-2019, its total la