Latest news with #UnitedPlantations
Yahoo
15-05-2025
- Business
- Yahoo
Why We Like The Returns At United Plantations Berhad (KLSE:UTDPLT)
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Speaking of which, we noticed some great changes in United Plantations Berhad's (KLSE:UTDPLT) returns on capital, so let's have a look. Our free stock report includes 1 warning sign investors should be aware of before investing in United Plantations Berhad. Read for free now. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for United Plantations Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.29 = RM936m ÷ (RM3.4b - RM195m) (Based on the trailing twelve months to March 2025). Therefore, United Plantations Berhad has an ROCE of 29%. In absolute terms that's a great return and it's even better than the Food industry average of 9.1%. See our latest analysis for United Plantations Berhad Above you can see how the current ROCE for United Plantations Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering United Plantations Berhad for free. United Plantations Berhad is showing promise given that its ROCE is trending up and to the right. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 127% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects. As discussed above, United Plantations Berhad appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. Since the stock has returned a staggering 260% to shareholders over the last five years, it looks like investors are recognizing these changes. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. If you want to continue researching United Plantations Berhad, you might be interested to know about the 1 warning sign that our analysis has discovered. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. 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.
The Star
14-05-2025
- Business
- The Star
Profit-taking drags FBM KLCI into the red at midday
KUALA LUMPUR: The FBM KLCI turned lower at midday, reversing recent gains as profit-taking activity emerged following yesterday's strong run-up. At lunch break, the benchmark FBM KLCI fell 3.55 points, or 0.22%, to 1,578.84, rebounding from an intramorning low of 1,573.44. There were 489 gainers, 401 losers and 470 counters traded unchanged on the Bursa Malaysia. Turnover stood at 2.43 billion shares valued at RM1.42bil. The top loser on Bursa Malaysia was United Plantations, which lost 48 sen to RM22.50. Carlsberg fell 28 sen to RM19.20, Nestle eased 24 sen to RM84.76 and PETRONAS Dagangan declined 20 sen to RM20.28. Among the gainers, Malaysian Pacific Industries rose 34 sen to RM21.32, SAM Engineering added 32 sen to RM4.42, DKSH gained 27 sen to RM5.26 and Hengyuan climbed 26 sen to RM1.90. TA Securities said stocks are likely to extend gains as the improvement in US-China trade relations has abated concerns of a global trade war and is expected to support risk-on sentiment in the near term. 'Immediate support has been revised higher to 1,526, representing the 50% Fibonacci retracement (FR) of the rally from the 1,369 low (June 2023) to the 1,684 peak (August 2024), with stronger support seen at the 38.2% FR (1,490) and 23.6% FR (1,444). 'Immediate resistance is also revised upwards to the 76.4% FR (1,610) with tougher upside hurdles at 1,644 and the 29/08/24 high of 1,684,' TA said. Meanwhile, Malacca Securities expects further upside in Malaysia's technology sector, following the rally on Wall Street and renewed optimism after the US-China tariff truce. The research house said sentiment was also lifted by news that the Trump administration has formally rescinded the Biden-era AI Diffusion Rule, which supported gains in local tech counters. On the flip side, Malacca Securities said the US-China trade deal is seen as negative for Malaysian glove players, as it makes Chinese gloves more competitively priced and may hurt demand for Malaysian gloves. 'Besides, we believe trading opportunities will extend within the Steel sector like Hiap Teck, Hiap Teck and Malaysia Steel Works, as Malaysia is set to impose anti-dumping duties on steel and tinplate from China and other Asian nations,' it said.
The Star
12-05-2025
- Business
- The Star
United Plantations set on remaining competitive
PETALING JAYA: United Plantations Bhd will remain alert and adapt to the changing environment for this year. Chairman Datuk Mohamad Nasir Abdul Latif believes two key themes will likely shape the global economy in 2025, namely the normalisation of inflation rates and the loosening of monetary policy. Both of these, he said, should offer some support to gross domestic product growth. 'Nevertheless, central banks remain cautious about loosening policies too rapidly as inflation is stickier than expected, which could indicate that rates may stay higher for longer,' he said in the company's annual report. 'Furthermore, the escalating conflicts in the Middle East and Ukraine as well as the slowdown in the Chinese economy may provide setbacks in global trade, which in turn would impact the supply and demand equation for vegetable oils, hereunder palm oil,' Mohamad Nasir added. He noted that the recent price increase in vegetable oils should not be taken for granted. 'In the United Plantations Group we will therefore continue to focus on raising productivity and cost efficiencies to remain competitive when prices head south again. 'With the board and management's focus I am confident that we will remain alert and adapt to the changing environment by having an open mind, remaining agile and by having the courage to innovate and stimulate progress whilst ultimately preserving our core values,' he said. Reflecting on the past year, Mohamad Nasir said the global economy led by the United States has been resilient amidst an environment of high interest rates introduced to curb inflation. Commenting on the group's performance, Mohamad Nasir said United Plantations has remained resilient amidst the global uncertainty and achieved a new record after-tax profit of RM719mil for the financial year 2024. 'This represents an increase of RM8mil equal to a 1.1% improvement when compared with the result of RM711mil in 2023. 'This record result was primarily driven by the higher commodity prices achieved by United Plantations, along with the continued efforts of our estates to optimise yields wherever possible using our in-house high-yielding planting materials and by further strengthening and implementing our proven management practices.' Separately, he said the group's plantations in Indonesia were significantly compounded by weather conditions during the year, where rainfall on most of its estates was 50% to 60% higher than the norm. 'This and others resulted in our production declining 11% in 2024 compared to 2023, thus impacting the overall group production for the year.' He added that the group's downstream refinery sector also encountered challenges in 2024. This was mainly in the form of increased competition from Indonesia and margin pressure. 'Even so, we achieved a commendable result, driven by our unwavering commitment and focus on high quality and sustainability, which has ensured stability and sustained partnerships with both local and global customers,' he said.
New Straits Times
23-04-2025
- Business
- New Straits Times
United Plantations 1Q 2025 net profit rises to RM163.26 mil
KUALA LUMPUR: United Plantations Bhd posted a higher net profit of RM163.26 million for the first quarter ended March 31, 2025 (1Q 2025), up from RM133.54 million a year earlier. Revenue for the quarter rose by 8.6 per cent to RM517.63 million from RM476.75 million previously. In a filing with Bursa Malaysia today, the company said that revenue growth was mainly driven by increases in the plantation and refinery segments during the quarter, primarily due to higher crude palm oil and palm kernel production and prices. "The company's profit before tax at RM222.4 million for the current quarter was also higher by 24.6 per cent compared to RM178.4 million in the corresponding quarter, mainly due to a higher contribution from the plantation segment," United Plantations said. On prospects, the company said that it remains focused on operations and is undertaking various measures to improve yields and productivity through ongoing mechanisation initiatives, and the replanting of older, less productive oil palm stands with its latest in-house high-yielding planting materials. "Looking ahead, we remain mindful of the challenges for the remainder of the year. However, based on the performance to date, a stable labour situation, and the company's strong commitment to securing the budgeted crop, the board of directors expects the results for 2025 to be satisfactory," it added.
