Latest news with #JohorPlantations
Yahoo
02-06-2025
- Business
- Yahoo
Only Three Days Left To Cash In On Johor Plantations Group Berhad's (KLSE:JPG) Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Johor Plantations Group Berhad (KLSE:JPG) is about to trade ex-dividend in the next three days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. In other words, investors can purchase Johor Plantations Group Berhad's shares before the 6th of June in order to be eligible for the dividend, which will be paid on the 24th of June. The company's upcoming dividend is RM00.01 a share, following on from the last 12 months, when the company distributed a total of RM0.052 per share to shareholders. Based on the last year's worth of payments, Johor Plantations Group Berhad has a trailing yield of 4.5% on the current stock price of RM01.17. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Johor Plantations Group Berhad is paying out an acceptable 53% of its profit, a common payout level among most companies. A useful secondary check can be to evaluate whether Johor Plantations Group Berhad generated enough free cash flow to afford its dividend. Fortunately, it paid out only 36% of its free cash flow in the past year. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Check out our latest analysis for Johor Plantations Group Berhad Click here to see the company's payout ratio, plus analyst estimates of its future dividends. When earnings decline, dividend companies become much harder to analyse and own safely. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. Johor Plantations Group Berhad's earnings per share have plummeted approximately 36% a year over the previous five years. We'd also point out that Johor Plantations Group Berhad issued a meaningful number of new shares in the past year. It's hard to grow dividends per share when a company keeps creating new shares. Given that Johor Plantations Group Berhad has only been paying a dividend for a year, there's not much of a past history to draw insight from. Has Johor Plantations Group Berhad got what it takes to maintain its dividend payments? We're not enthused by the declining earnings per share, although at least the company's payout ratio is within a reasonable range, meaning it may not be at imminent risk of a dividend cut. All things considered, we are not particularly enthused about Johor Plantations Group Berhad from a dividend perspective. With that being said, if dividends aren't your biggest concern with Johor Plantations Group Berhad, you should know about the other risks facing this business. Our analysis shows 1 warning sign for Johor Plantations Group Berhad and you should be aware of it before buying any shares. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
07-05-2025
- Business
- The Star
Positive stance on Johor Plantations' business outlook, expansion plan
PETALING JAYA: Johor Plantations Group Bhd is well-positioned to capitalise on the current elevated crude palm oil (CPO) prices at RM4,000 to RM5,000 per tonne, supported by limited supply growth and solid export demand. Following a recent visit to the group's plantation in Kluang, Johor, MIDF Research said it came away feeling positive about Johor Plantations' business outlook and its expansion plan. From a valuation standpoint, the research house believes that United Plantations Bhd , Hap Seng Plantations Holdings Bhd, Kim Loong Resources Bhd , TSH Resources Bhd and United Malacca Bhd are the closest peers to Johor Plantations due to similarities in their business models as well as the total planted area. 'These peers and Johor Plantations' planted area are relatively the same circa 40,000 ha to 50,000 ha,' it added. According to MIDF Research, Johor Plantations has the second-highest CPO yield after United Plantations, which is the most important single indicator of performance for a plantation company. The sector five-year historical mean price-to-earnings ratio is about 15 times, and it is currently trading at 10.5 times. 'Considering all these factors, we believe a reasonable price-to-earnings ratio for Johor Plantations would fall between 10 times to 13 times,' it noted. Based on the financial year 2025 (FY25) profit forecast of RM290.1mil or earnings per share of 11.6 sen, MIDF Research estimated that the stock's fair value to range between RM1.16 and RM1.51 per share. Johor Plantations' strong financial performance in the fourth quarter (4Q24) of financial year 2024 (FY24), with a core net profit of RM92.1mil, has lifted its FY24 net profit to RM254.8mil. 'These results surpassed expectations, representing over 100% of consensus full-year forecasts, and we expect the positive momentum to continue into 1Q25 and FY25, driven by sustained high average CPO prices realised and CPO delivery,' MIDF Research noted. The group's management also expects CPO production cost to stabilise at RM2,100 to RM2,000 per tonne for FY25 to FY26. 'This is in line with our estimates, following a reduction of fertiliser costs that will be imputed (generally accounts 15% to 20% of cost of production), due to softened components fertiliser prices that have been seen in the past months. 'As a result, operating profit margins should be stabilised above 30%, over FY25 to FY27 forecasts, with the profit after tax margin ranging 24% to 27% in the same period,' noted the research house. On the group's competitive strengths, MIDF Research said Johor Plantations is a long-established Roundtable on Sustainable Palm Oil (RSPO)-certified palm oil producer committed to sustainability, with all its mills and plantations meeting RSPO standards. Operating across nearly 60,000ha in Johor, the company benefits from economies of scale, reducing costs in areas like fertilisers and machinery.
