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SOP

Sarawak Oil Palms BerhadKLSE:SOP Stock Report

Market Cap

RM2.2b

7D

-0.5%

1Y

9.3%

Updated

25 Oct, 2021

Data

Company Financials +
SOP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends4/6

SOP Overview

Sarawak Oil Palms Berhad, an investment holding company, cultivates oil palms and operates palm oil mills in Malaysia, the Asia Pacific, and internationally.

Sarawak Oil Palms Berhad Competitors

IOI Corporation Berhad

KLSE:IOICORP

RM25.2b

Kuala Lumpur Kepong Berhad

KLSE:KLK

RM24.7b

Genting Plantations Berhad

KLSE:GENP

RM6.7b

United Plantations Berhad

KLSE:UTDPLT

RM5.9b

Price History & Performance

Summary of all time highs, changes and price drops for Sarawak Oil Palms Berhad
Historical stock prices
Current Share PriceRM3.88
52 Week HighRM3.30
52 Week LowRM4.44
Beta1.16
1 Month Change11.82%
3 Month Change7.18%
1 Year Change9.30%
3 Year Change49.23%
5 Year Change4.02%
Change since IPO812.94%

Recent News & Updates

Shareholder Returns

SOPMY FoodMY Market
7D-0.5%-0.3%-0.8%
1Y9.3%-2.3%9.6%

Return vs Industry: SOP exceeded the MY Food industry which returned -1.5% over the past year.

Return vs Market: SOP matched the MY Market which returned 9.3% over the past year.

Price Volatility

Is SOP's price volatile compared to industry and market?
SOP volatility
SOP Beta1.16
Industry Beta0.51
Market Beta1

Stable Share Price: SOP is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SOP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19689,489Hee Wonghttps://www.sop.com.my

Sarawak Oil Palms Berhad, an investment holding company, cultivates oil palms and operates palm oil mills in Malaysia, the Asia Pacific, and internationally. It operates through two segments, Oil Palm and Property Development. The company processes fresh fruit bunches into crude palm oil.

Sarawak Oil Palms Berhad Fundamentals Summary

How do Sarawak Oil Palms Berhad's earnings and revenue compare to its market cap?
SOP fundamental statistics
Market CapRM2.23b
Earnings (TTM)RM271.95m
Revenue (TTM)RM3.37b

8.2x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOP income statement (TTM)
RevenueRM3.37b
Cost of RevenueRM2.64b
Gross ProfitRM733.59m
ExpensesRM461.64m
EarningsRM271.95m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.48
Gross Margin21.76%
Net Profit Margin8.07%
Debt/Equity Ratio39.2%

How did SOP perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is Sarawak Oil Palms Berhad undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOP (MYR3.88) is trading below our estimate of fair value (MYR9.91)

Significantly Below Fair Value: SOP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SOP is good value based on its PE Ratio (8.2x) compared to the MY Food industry average (15.2x).

PE vs Market: SOP is good value based on its PE Ratio (8.2x) compared to the MY market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: SOP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SOP is good value based on its PB Ratio (0.9x) compared to the MY Food industry average (1.1x).


Future Growth

How is Sarawak Oil Palms Berhad forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOP's earnings are forecast to decline over the next 3 years (-14% per year).

Earnings vs Market: SOP's earnings are forecast to decline over the next 3 years (-14% per year).

High Growth Earnings: SOP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SOP's revenue is expected to decline over the next 3 years (-6.5% per year).

High Growth Revenue: SOP's revenue is forecast to decline over the next 3 years (-6.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOP's Return on Equity is forecast to be low in 3 years time (9%).


Past Performance

How has Sarawak Oil Palms Berhad performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOP has high quality earnings.

Growing Profit Margin: SOP's current net profit margins (8.1%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: SOP's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: SOP's earnings growth over the past year (43.9%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: SOP earnings growth over the past year (43.9%) underperformed the Food industry 55.6%.


Return on Equity

High ROE: SOP's Return on Equity (11.1%) is considered low.


Financial Health

How is Sarawak Oil Palms Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: SOP's short term assets (MYR1.6B) exceed its short term liabilities (MYR983.6M).

Long Term Liabilities: SOP's short term assets (MYR1.6B) exceed its long term liabilities (MYR735.2M).


Debt to Equity History and Analysis

Debt Level: SOP's debt to equity ratio (39.2%) is considered satisfactory.

Reducing Debt: SOP's debt to equity ratio has reduced from 56.9% to 39.2% over the past 5 years.

Debt Coverage: SOP's debt is well covered by operating cash flow (33.5%).

Interest Coverage: SOP's interest payments on its debt are well covered by EBIT (24.1x coverage).


Balance Sheet


Dividend

What is Sarawak Oil Palms Berhad current dividend yield, its reliability and sustainability?

1.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOP's dividend (1.55%) is higher than the bottom 25% of dividend payers in the MY market (1.51%).

High Dividend: SOP's dividend (1.55%) is low compared to the top 25% of dividend payers in the MY market (4.23%).


Stability and Growth of Payments

Stable Dividend: SOP's dividend payments have been volatile in the past 10 years.

Growing Dividend: SOP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.6%), SOP's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SOP's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

18.8yrs

Average management tenure


CEO

Hee Wong (59 yo)

23.75yrs

Tenure

Mr. Hee Kwong Wong has been the Group Chief Executive Officer of Sarawak Oil Palms Bhd since 2010. Mr. Wong served as Chief Executive Officer of Sarawak Oil Palms Berhad Group since 1998 until 2010. He wor...


Leadership Team

Experienced Management: SOP's management team is seasoned and experienced (18.8 years average tenure).


Board Members

Experienced Board: SOP's board of directors are seasoned and experienced ( 11.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sarawak Oil Palms Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Sarawak Oil Palms Berhad
  • Ticker: SOP
  • Exchange: KLSE
  • Founded: 1968
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: RM2.230b
  • Shares outstanding: 571.68m
  • Website: https://www.sop.com.my

Number of Employees


Location

  • Sarawak Oil Palms Berhad
  • No. 124-126, Jalan Bendahara
  • PO Box 547
  • Miri
  • Sarawak
  • 98007
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:41
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.