Jaya Tiasa Holdings Bhd

$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD)

Declares 3 sen dividend, or about 20% of PAT.

Net cash position currently stands at RM 272mil from RM 107.2mil vs last Q. After further reducing an additional RM 60mil of debt, the current debt outstanding is about ~ RM 62 mil. YTD, they have paid off about RM 130mil of debt while paying out RM 34mil dividends. The 3 sen recently declared amounts to about another RM 29mil.

I doubt the management would totally clear off all their debt just to keep trade lines active, so with the current debt outstanding at RM~60mil, this effectively implies that their debt repayment cycle has completed. So, we shall see how much additional dividend the management deems fit to declare in August, or if they will transition to a quarterly policy since their debt has been mostly paid off. This is just speculation, however. Guidance has always only been at least 20% of PAT, while they paid out 40% last year.

Profit wise, this is their best 1H performance since listing, and in these 2Q alone they are almost beating their best full year results too.

Are you disappointed at the lower dividends declared? It might be too early to jump to conclusions.

Titan Trading Notes for Thursday [13/2/2025]

KLCI had a decent breakout back towards the 1603 points region with an overall positive market sentiment. Overall daily trading volume also saw an improvement as we hovered back towards the 3.15 billion mark.

Main stocks that showed strong buying momentum would be the likes of MYEG, RGB, PBBANK, YTL, INARI, YTLPOWR, YBS, SUPERMX, SRIDGE, SET, RL, SIMEPROP, and MAYBANK. All of which were able to sustain their rallies throughout the day on the top volumes list.

$RGB / 0037 (RGB INTERNATIONAL BHD) was definitely the star performer today as it broke out from its RM 0.415+ main downtrend resistance and rallied all the way towards the RM 0.44 regions with huge volume and buying momentum.

So far looking quite bullish here and as long as able to sustain above its RM 0.415+ immediate support levels on the daily chart, could continue on towards its RM 0.45+ major resistance levels soon until its next pullback happens.

Will be monitoring RGB closely here as looking quite strong.

$MYEG / 0138 (MY E.G. SERVICES BERHAD) on the other hand also had a decent breakout towards the RM 1.05 regions with good volume and buying momentum today on the daily chart.

This came after it broke out from its RM 1+ major resistance levels earlier last week. For now looking strong and as long as able to hold above its RM 1 support, could continue towards and beyond its RM 1.07 regions soon in the coming weeks.

Will be monitoring MYEG closely here.

With FCPO prices coming up, $JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) had a decent breakout towards the RM 1.35 regions with good volume and buying momentum today, even closing on its intraday high here, which is a very good signal.

For now looking quite bullish and as long as able to hold above its RM 1.30 immediate support level, could continue on towards and beyond its RM 1.40+ major resistance levels soon in the coming weeks for an uptrend continuation pattern.

Will be monitoring JTIASA closely here as seems to be leading the plantation sector.

$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) AGM 2024 Summary

1. How does the new minimum wage hike, CPO export tax, and revised windfall profit levy impact the company?
a. The new CPO export tax does not negatively impact the company because they sell CPO locally.
b. Revised windfall profit levy is favourable to the planters. Using FY2024 sales as an example, the revised levy would have saved the company up to RM 5mil.
c. Increment in minimum wage would have minimal impact to the group as only a small portion (<10%) of the workforce is at minimum wage levels.
d. The group will continue to reduce dependency on manpower by investing in technologies which can improve operational efficiencies and productivity.

2. What are the estimated replanting costs?
a. About RM 18mil, 25mil, and 32mil in FY 25, 26, and 27 respectively, to clear and plant about 2000-4000 ha per year.

3. The company raises their own seedlings in their in house nursery, and is expected to have an oil yield of between 3.5-4.5 MT per ha.

4. Fertilizer cost is budgeted at about RM 120mil for FY25-27.

5. Over 90% of FFB are sourced from own estates, while <10% of FFB were bought from external.

6. Timber division breakeven price is about RM 700 per m3 of logs. For now, the company is not focusing on the log business unless opportunity arises.

7. What are the company’s plans for future cash since no more new lands are allowed to be opened for oil palm plantations?
a. Capex allocated for replanting as mentioned before.
b. Any potential new businesses if the opportunity arises.
c. Reward shareholders with dividends depending on performance and cash flow.

8. Forward selling of CPO?
a. The company’s ASP is typically based on MPOB average price. Nevertheless, sometimes the company does engage in forward selling if the market prices are favourable.

9. So far, the company has done about 94% of the targeted YTD FFB production. For reminder, the full year FY2025 budgeted FFB production is 1,211,852 MT.

10. RPT between the company and Borneo Edible Oils; any contracts? Does the price follow market?
a. No contractual agreements. Pricing is based on market prices.

11. Why did the company acquire wealth houses development?
a. To expand total plantation land bank. 55% stake to own controlling interest, so that the company can make decisions regards to management of the land.

12. Why no sharebuybacks?
a. Company believes dividend to be a better way of rewarding shareholders than share buybacks.

13. The company believes that FY2025 is expected to be another good year for Jtiasa.

$MGB / 7595 (MGB BERHAD) 50%
$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) 25%
$DAYANG / 5141 (DAYANG ENTERPRISE HOLDINGS BERHAD) 25%

Titan Trading Notes for Tuesday [10/12/2024]

$KLCI retraced back towards the 1611 points region with an overall negative market sentiment as we saw over 660 counters closing red for the day. Daily trading volume settled slightly over the 3 billion mark, which is still ok for current conditions.

Main stocks that showed strong buying momentum would be the likes of MYEG, DSONIC, GFM, DIALOG, CORAZA, and JTIASA. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.

$MYEG / 0138 (MY E.G. SERVICES BERHAD) since breaking out towards the RM 1.15 major resistance levels during June, had been retracing and consolidating over the past 5-6 months without much volume and action here on the daily chart.

Today, it was able to breakout strong from its RM 0.925+ main downtrend resistance on the daily chart with huge volume and buying momentum, rallying all the way towards the RM 0.95+ regions here despite the weak market.

So far looking quite strong here and will be monitoring MYEG closely as could be the start of a new uptrend.

$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) on the other hand although retraced back towards the RM 1.40 support levels, was able to rebound and breakout strong all the way towards the RM 1.50 regions with huge volume and buying momentum despite being massively overbought here.

For now definitely looking parabolic and as long as able to sustain above its RM 1.40+ immediate support on the daily chart, could be testing its RM 1.53+ major resistance levels very soon here.

Will be monitoring JTIASA closely as something big seems to be brewing here.

$CORAZA / 0240 (CORAZA INTEGRATED TECHNOLOGY BERHAD) since breaking out from its RM 0.48+ major downtrend resistance, had been able to hold well and even broke out all the way towards the RM 0.56 regions with huge volume and buying momentum today.

Looking very bullish here on the daily chart despite being slightly overbought. As long as able to hold above its RM 0.52+ immediate support, could trend back up towards the RM 0.585 - RM 0.60+ major resistance levels soon for an uptrend continuation pattern.

Will be monitoring CORAZA closely as seems to be starting a new uptrend wave.

Titan Trading Notes For Friday [1/11/2024]:

$KLCI retraced back towards the 1601 points region during Wednesday with an overall bearish market sentiment as we saw over 670 counters closing red for the day along with it. KLCI is quite bearish now and is expected to consolidate around the 1600 points region in the short-mid term.

Daily trading volume settled around the 2.5 billion mark, which is still pretty low and mainly dominated by selling activities. Main stocks that showed strong buying momentum would be the likes of NICE, HAWK, BPURI, GAMUDA, VTC, SDCG, and 99SMART. All of which were able to sustain their rallies throughout the day on the top volumes list.

$NICE / 7139 (NICHE CAPITAL EMAS HOLDINGS BERHAD) after retracing back towards the RM 0.18+ main support levels earlier this week, had been able to hold well above it and broke out strong towards the RM 0.205 regions with huge volume and buying momentum.

For now looking quite bullish here and as long as able to hold above its RM 0.185+ immediate support levels, could continue on towards and beyond its RM 0.205+ regions for a further bullish continuation pattern.

Will be monitoring NICE closely here. The surge likely attributed by rising gold prices.

$SKHAWK / 03049 (STEEL HAWK BERHAD) since retracing back towards the RM 0.265+ major support levels earlier this month, had been able to recover well over the past few weeks, breaking out back towards the RM 0.36 regions on Wednesday with good volume.

For now looking quite strong here and as long as able to hold above its RM 0.35+ immediate support levels, could continue on towards and beyond the RM 0.41 all time high regions soon.

Will be monitoring HAWK closely here as didn't expect this stock to surge up despite the weak market sentiment.

$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) , following the FCPO's breakout was able to hold steadily above its RM 1.17+ immediate support earlier this week and broke out strong towards the RM 1.24 regions with good volume and buying momentum during Wednesday.

For now it's looking quite bullish and expected to be one of the leading plantation counters to monitor here. Following FCPO's breakout from its major resistance levels earlier this week, will be expecting a potential bull run here if able to hold support of RM 1.17.

Will be monitoring JTIASA closely here as I believe the plantation sector is coming next.

Jaya Tiasa Holdings Bhd jumped past a hurdle at RM1.19 yesterday, breaking free of a resistance that has kept a lid on gains since May this year.

🚀 BUDGET 2025 MALAYSIA THEME STOCKS 🚀



💥 Pre-Rally Alert 💥: Stocks to watch in anticipation of Budget 2025 on 18 Oct 2024:

1️⃣ Infrastructure 🏗
Transportation Projects → MRT 3, Penang LRT 🚆
Water Infrastructure → Pipe replacements, filtration, flood control 💧
Key Stocks: SUNCON, GAMUDA, IJM, RESINTC, ENGTEX, MCEMENT

2️⃣ Sarawak 🌴
More Allocations → Infrastructure and energy projects in Sarawak 🌱
Renewable Energy → Focus on East Malaysia's green projects ♻️
Key Stocks: IBRACO, PANSAR, CMSB, AFFIN

3️⃣ Johor 🏙
Tax Incentives → Johor-Singapore Special Economic Zone and Special Financial Zone 🏭
First-Time Homebuyer Discounts 🏡
Key Stocks: UEMS, IOIPG, KSL, CRESNDO

4️⃣ Cybersecurity 🔒
Cybersecurity initiatives → More funding and subsidies for cybersecurity measures.🖥
Key Stocks: LGMS, CLOUDPT, INFOTEC

5️⃣ Food 🍗
Subsidy Removals → potential removal of egg and sugar price subsidies and ceiling prices 🍳
Tax Hike → Sugar-sweetened beverage taxes 🥤
Key Stocks: TEOSENG, PWF, MSM

6️⃣ Palm Oil 🌴
Windfall Tax Cut → Likely increase in threshold 📉
Key Stocks: SOP, TAANN, JTIASA

7️⃣ Electronic Invoices 🧾
Phased Rollout → eInvoice for businesses 💼
Key Stocks: ADB, PANDA, IFCAMSC

8️⃣ Renewable Energy 🌞
Growth in Renewables → LSS5, Floating solar, EV charging 🌱
Key Stocks: SLVEST, SAMAIDEN, SCGBHD

9️⃣ Tech & Manufacturing 💻
Incentives for High-End Manufacturing → Semiconductor industry growth 🔧
Key Stocks: KGB, AME, INARI, MPI

$IBRACO / 5084 (IBRACO BERHAD) $SCGBHD / 0225 (SOUTHERN CABLE GROUP BERHAD) $JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) $TEOSENG / 7252 (TEO SENG CAPITAL BERHAD) $UEMS / 5148 (UEM SUNRISE BERHAD)

$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) - Hit by impairment, write offs, and taxes; yet declares a record high dividend as cash flows through.

Let's just get right into it.

1. Gross profit for the qtr stands at RM 45.5mil, with a GPM of roughly 20%.
2. PBT is RM 31mil, with a PBT margin of about 13.8%. This quarter they had to pay RM 15.4mil of taxes. Why? Probably because of the weird way taxation works. If anyone runs their own business, you'd understand. Basically, you'd have to pay what the government thinks you should pay first; and the following year if there's any discrepancies then you'd get refunded or added on.

3. Cash on hand stands at RM 283mil, against short and long term borrowings of RM 57.6mil and RM 136.6mil respectively. 283-57.6-136.6= net cash of roughly RM 88.8mil.

4. The cash flow statement is where things get really interesting. NOCF for FY2024 hits RM 360mil while FCF was RM 241mil this year. If we exclude the acquisition of wealth houses estates and mill and evaluate more on the normal capex, the FCF is about RM 290mil. Out of this, they pared down their debts by RM 153mil, and then declared a total of 6sen dividend this FY (2.5sen in Feb, and 3.5sen in Aug), roughly amounting to RM 59mil.

5. The bottomline profit and the cash flow statements are in quite stark contrast with each other, with one giving rather disappointing results while the other showing very strong numbers. It's clear that the PAT numbers were largely affected by the impairments and PPE written off-- I presume the bulk of this comes from the timber division. Bear in mind that these are non cash items.

6. The management guided for an even stronger oil palm operational performance in 2025, aiming to raise their FFB production to 1.2mil MT, with an FFB yield of 17.8 ton per hectare. This should also help with the mill utilization rates and subsequently the efficiency.

7. It's also worth noting that the management is replanting around ~ 1000 hectares of trees.

Are the results satisfactory to you? In my personal opinion, I think they were OK. The underperformance of the timber division was worse than I was prepared for, but the oil palm division is still carrying the performance.

With a record high dividend declared, I think it's a good sign that the management isn't too tight pursed and is willing to declare out the profits in stages while they pare down their debts. For the full year, the payout ratio increased to about 40% from their dividend policy of at least 20%.

All my sharing here is purely for information only based on my understanding. Look through the numbers in detail, do your own valuations, filter through the noise, and then make a decision you can stand proudly by.

@terence775 possible. the bursa plantation index is seeing signs of recovery. now that other sectors are consolidating, maybe it's finally planters turn to shine.

I am still waiting for $JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) QR to see if they will start declaring more dividends haha. Could be a nice yield play in times like this when recession fears are on the horizon.

@realalvinang collectively, there are a bunch of reasons why and I think you covered some of the main ones. However, zoom in a bit from just a "plantation sector" into "selected plantation companies" and you might find some that are performing very well indeed.

For better or for worse, a lot of the "largest cap" plantation companies are no longer pure planters, but instead more like conglomerates including sime darby, ioi, klk, genp, and so on, with arms in solar, property, oleochems, etc. With them being so big cap, they carry the highest weightage in the plantation index.

Focusing on more pure planters, for example $UTDPLT / 2089 (UNITED PLANTATIONS BERHAD) , $KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD) $TAANN / 5012 (TA ANN HOLDINGS BERHAD) $JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) $TSH / 9059 (TSH RESOURCES BERHAD) , you would see that their share price gains range from amazing to not too bad in the recent few years.

What happened with utdplt, compared to the rest? And which other company could potentially replicate what utdplt has done in the past few years? I think that's worth studying.

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

DISCLOSURE ON QUARTERLY PRODUCTION

$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) just announced their qtrly production for the Q4 of FY24; briefly it's about +13% QoQ and about +3% MoM and +7% YoY. As a whole, they have slightly surpassed their target for FY24.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - GENINE CHAIN LIMITED

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR CHANG MENG

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR HO CHEUNG CHOI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR CHANG MENG

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - GENINE CHAIN LIMITED

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR HO CHEUNG CHOI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR HO CHEUNG CHOI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - GENINE CHAIN LIMITED

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR CHANG MENG

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR HO CHEUNG CHOI

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - GENINE CHAIN LIMITED

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR CHANG MENG

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

$JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) - Disappointing Profit Numbers Hides Improving Operational Performance

Typically Calendar year Q1 is the low season, and you can check and compare most plantations to see this trend. I've also mentioned this many times over the past months, so I hoped nobody was taken by surprise at the "bad" quarter. In fact, plantation companies release their production numbers every month via announcement on Bursa, so for those following the plantation sector I believe we must at bare minimum keep track of these numbers.

For the record, Jtiasa produced ~216.8k tons of FFB and 41.7k tons of CPO with a below average OER of 18.6%.

YoY, they have improved quite a bit from 190.3k tons of FFB and 36k tons of CPO in 2023, and the improvements become even more apparent if we compare it to 2022 where they only produced 151.2k tons of FFB and 25.9k tons of CPO.

When tracking plantations, bottomline profit numbers by themselves can often be very misleading as they are very heavily dependent on the underlying commodity; but only by digging more into the operational numbers can we see how a company is improving or not.

Anyhow, with that out of the way, let's quickly just go through the QR and what I think stand out to me.

1. Gross Profit hits RM 36mil, with GPM of about 17%. They knock off another 3mil on the fair value of their biological assets. Meanwhile, in spite of the lower revenue, they had incurred higher administrative expenses. This could be due to multiple reasons, but it's generally not a good thing. That being said, it's not unheard of for staff bonuses and the like to be given during Q1 (especially like CNY ang pao and so on), so as long as the number doesn't balloon, I wouldn't immediately raise any flags yet. It's also worth nothing that Jtiasa has frequently mentioned that they are increasing manpower to improve harvests, and this rising expense could simply just be part of that. (They have improved their manpower from 50%, 75%, and now close to 90% of their required manpower according to the AGM).

2. In this Qtr, Jtiasa had written down their goodwill, amounting to around ~RM 11.6mil. Their investment securities seem to be doing somewhat well, and I believe this is from their shares in $RSAWIT / 5113 (RIMBUNAN SAWIT BERHAD) back in 2015. I'm not sure when they will sell their shares, if ever.

3. C&CE stands at RM 270.3mil, vs debt of RM 56.3+185.9 = RM 242.2mil. Net cash position stands at RM 28.1 mil, which is a ~RM 12mil increase QoQ in spite of paying out an additional ~RM 24mil of dividends. This is good.

4. In 3Q, their NOCF hits RM 282.2mil, increasing by RM 54mil qoq, while they spent around RM 18mil on capex, thus leading FCF this qtr at around RM RM 36mil. Cumulatively, the FCF generated this 9M is close to RM 190mil, including the acquisition of their subsidiary. Not bad at all. They have also continued to pare down their debt, which should provide interest savings over time.

5. A few people angrily highlight the purchase of aircraft and motor vehicles, and asked me whether this is a misappropriation of company funds and compare it with another company who also recently bought a private jet for RM 200+mil. Coming from the plantation industry, it is very normal to have a small plane or two (even small ships sometimes) as most of the time the estates are located in very rural and hard to access areas, and for the management (whom are mostly quite senior people) to visit the estates and mills, it's not reasonable to expect them to sleep in the jungles and go through a 20-30 hour ride by 4x4 just for a single visit. So, this is a non issue to me.

6. With having passed low season now, Jtiasa's management expects to have gradual output recovery and this is in line with most players as well.


***

So far, operationally Jtiasa has shown continued improvement yoy and the management under the new CEO seems to be walking the talk. Cash flow has been great, and the final mark will be to see how generous the company will be in distributing dividends come August above the 20% payout policy they have in light of their improved financial position.

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)