TDM, considered one of the cheapest plantation stocks in Malaysia, closed up nearly 3 per cent to RM2.92 yesterday. Its net profit more than doubled to RM32 million for the quarter ended June 30 2011.
The improved stock performance of the Terengganu state government outfit was in line with other plantation stocks on the market, which collectively increased by 121.54 per cent yesterday.
Plantation stocks are in the limelight this results season as companies like TDM post stellar profits on higher crude palm oil (CPO) prices.
TDM posted a net profit of RM32 million on revenue of RM126.9 million for its second quarter due to higher crude palm oil production, which increased 26 per cent.
Hong Leong Investment Bank said TDM is one of the laggard plays within the plantation sector and was worth a second look due to a clearer business strategy, improving financial performance and standing, as well as continued dividend payouts.
"We are projecting TDM's net profit to rise from RM92 million in 2010 to RM129.1 million, RM105.2 million and RM100.2 million in 2011, 2012 and 2013 respectively, mainly on the back of higher CPO price assumptions of RM3,200 a tonne in 2011 and RM3,000 a tonne in 2012-2013," it said in a research report.
The above article is an excerpt from Business Times
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3 comments:
cheap but share price do not move up alot...
can easily be priced at RM5 for TDM
No matter how well TDM perform, it's not worth in investing because it is a politcal party counter. These politician will screw up the company. Just look at how MAS is being screw up. Do so research and see for yourself how many companies these politician have screw up. Small investor is always at the losing side. After 30 years in the market I have seen enough of all this. Just look at these counter how they screw up and the directors are all walking free. Example George Town, Datuk Keramat, Idris (where they sold off a building which is unaccounted for) and many more counter.
Political party counter, which GLC is not ?
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