"Kuala Lumpur Kepong Bhd (KLK)'s share price, for instance, rose from RM9.50 in late June to RM11.60 on Friday, its highest in at least 10 years. That raised its price/earnings (PE) ratio valuation to 20 times its earnings last year and about 17 times its projected earnings this year. That's fairly typical of the big plantation stocks now
So far, one of the best-performing large plantation stocks is PPB Oil Palms Bhd, a member of the Kuok group. The stock hit its all-time high of RM8.10 on Friday, about 100% higher than its price of RM4.00 a year ago.
A plantation company that has similar features is Tradewinds Plantation Bhd, a product of the merger of Tradewinds (M) Bhd and Johore Tenggara Oil Palm Bhd or JTop. In a circular to Tradewinds' shareholders last year, it was stated that it was the country's fifth largest plantation group by virtue of its planted acreage of 240,000 acres. " -biz.thestar.com.my
Seems like Plantation stocks have rose to their highs...
Any of you have any ideas whether rise in plantation stocks impacts timber too or just coincidence?
"Unexpectedly, there was also a strong rally among the large timber stocks last week. Subur Tiasa Holdings Bhd, for instance, closed at a record high of RM3.80 on Friday while WTK Holdings Bhd's price of RM5.65 was a five-year high.
At the same time, Ta Ann Holdings Bhd hovered at RM7.10, just a shade below its 52-week high. That raised its PE valuation to about 12 times its estimated earnings this year. "-biz.thestar.com.my