Sarawak Plantation Berhad (KLSE:SWKPLNT) - Share price, News & Analysis

Q: What is the Fair Price of SWKPLNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SWKPLNT (MYR2.09) is trading below our estimate of [[fair value]] (MYR24.33)

SWKPLNT fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	6/6
Financial Health	6/6
Dividends	5/6

SWKPLNT Stock Overview

Sarawak Plantation Berhad, an investment holding company, cultivates oil palm plantations in Malaysia.

Rewards

Trading at 91.4% below our estimate of its fair value

Earnings grew by 85.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 30.4% per year for the next 3 years

Unstable dividend track record

Sarawak Plantation Berhad Competitors

Innoprise Plantations Berhad

KLSE:INNO

RM670.4m

TH Plantations Berhad

KLSE:THPLANT

RM543.6m

PLS Plantations Berhad

KLSE:PLS

RM371.7m

Rimbunan Sawit Berhad

KLSE:RSAWIT

RM357.3m

Price History & Performance

Summary of all time highs, changes and price drops for Sarawak Plantation Berhad
Historical stock prices
Current Share Price	RM2.09
52 Week High	RM3.38
52 Week Low	RM1.99
Beta	0.37
1 Month Change	-20.83%
3 Month Change	-21.13%
1 Year Change	-0.48%
3 Year Change	27.44%
5 Year Change	32.28%
Change since IPO	-34.69%

Recent News & Updates

May 23

Sarawak Plantation Berhad (KLSE:SWKPLNT) Will Pay A Dividend Of RM0.05

Sarawak Plantation Berhad ( KLSE:SWKPLNT ) has announced that it will pay a dividend of RM0.05 per share on the 24th of...

May 13

Returns on Capital Paint A Bright Future For Sarawak Plantation Berhad (KLSE:SWKPLNT)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Shareholder Returns

	SWKPLNT	MY Food	MY Market
7D	-2.8%	-2.4%	-1.2%
1Y	-0.5%	-1.8%	-8.7%

Return vs Industry: SWKPLNT exceeded the MY Food industry which returned -1.8% over the past year.

Return vs Market: SWKPLNT exceeded the MY Market which returned -8.7% over the past year.

Price Volatility

Is SWKPLNT's price volatile compared to industry and market?
SWKPLNT volatility
SWKPLNT Average Weekly Movement	4.4%
Food Industry Average Movement	5.0%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.9%

Stable Share Price: SWKPLNT is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SWKPLNT's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	n/a	n/a	https://spbgroup.com.my

Sarawak Plantation Berhad, an investment holding company, cultivates oil palm plantations in Malaysia. The company operates through three segments: Investment Holding, Oil Palm Operations, and Management Services and Rental. It is involved in processing oil palm into crude palm oil and palm kernel; processing fresh fruit bunches; the provision of management, marketing, agronomic, and consultancy services; and provision of cattle integration services.

Sarawak Plantation Berhad Fundamentals Summary

How do Sarawak Plantation Berhad's earnings and revenue compare to its market cap?
SWKPLNT fundamental statistics
Market Cap	RM583.18m
Earnings (TTM)	RM147.39m
Revenue (TTM)	RM828.88m

4.0x

P/E Ratio

0.7x

P/S Ratio

Is SWKPLNT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SWKPLNT income statement (TTM)
Revenue	RM828.88m
Cost of Revenue	RM566.51m
Gross Profit	RM262.37m
Other Expenses	RM114.99m
Earnings	RM147.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.53
Gross Margin	31.65%
Net Profit Margin	17.78%
Debt/Equity Ratio	7.3%

How did SWKPLNT perform over the long term?

See historical performance and comparison

Dividends

9.6%

Current Dividend Yield

38%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SWKPLNT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SWKPLNT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SWKPLNT. This is calculated by dividing SWKPLNT's market cap by their current preferred multiple.
What is SWKPLNT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM583.18m

SWKPLNT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	2.1x
PEG Ratio	-0.1x

Price to Earnings Ratio vs Peers

How does SWKPLNT's PE Ratio compare to its peers?

SWKPLNT PE Ratio vs Peers

The above table shows the PE ratio for SWKPLNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.7x
INNO Innoprise Plantations Berhad	6.3x	n/a	RM670.4m
THPLANT TH Plantations Berhad	7.1x	-26.9%	RM543.6m
PLS PLS Plantations Berhad	12.2x	n/a	RM371.7m
RSAWIT Rimbunan Sawit Berhad	45.2x	n/a	RM357.3m
SWKPLNT Sarawak Plantation Berhad	4x	-30.4%	RM583.2m

Forward PE

Price-To-Earnings vs Peers: SWKPLNT is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (17.7x).

Price to Earnings Ratio vs Industry

How does SWKPLNT's PE Ratio compare vs other companies in the MY Food Industry?

Price-To-Earnings vs Industry: SWKPLNT is good value based on its Price-To-Earnings Ratio (4x) compared to the MY Food industry average (12.2x)

Price to Earnings Ratio vs Fair Ratio

What is SWKPLNT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SWKPLNT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4x
Fair PE Ratio	8.3x

Price-To-Earnings vs Fair Ratio: SWKPLNT is good value based on its Price-To-Earnings Ratio (4x) compared to the estimated Fair Price-To-Earnings Ratio (8.3x).

Share Price vs Fair Value

What is the Fair Price of SWKPLNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SWKPLNT (MYR2.09) is trading below our estimate of fair value (MYR24.33)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-30.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWKPLNT's earnings are forecast to decline over the next 3 years (-30.4% per year).

Earnings vs Market: SWKPLNT's earnings are forecast to decline over the next 3 years (-30.4% per year).

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

Revenue vs Market: SWKPLNT's revenue is expected to decline over the next 3 years (-10.8% per year).

High Growth Revenue: SWKPLNT's revenue is forecast to decline over the next 3 years (-10.8% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SWKPLNT's Return on Equity is forecast to be low in 3 years time (9.9%).

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Past Performance

How has Sarawak Plantation Berhad performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

51.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SWKPLNT has high quality earnings.

Growing Profit Margin: SWKPLNT's current net profit margins (17.8%) are higher than last year (15.5%).

Past Earnings Growth Analysis

Earnings Trend: SWKPLNT's earnings have grown significantly by 51.7% per year over the past 5 years.

Accelerating Growth: SWKPLNT's earnings growth over the past year (85.7%) exceeds its 5-year average (51.7% per year).

Earnings vs Industry: SWKPLNT earnings growth over the past year (85.7%) exceeded the Food industry 35.1%.

Return on Equity

High ROE: SWKPLNT's Return on Equity (21.3%) is considered high.

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Financial Health

How is Sarawak Plantation Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SWKPLNT's short term assets (MYR272.8M) exceed its short term liabilities (MYR137.7M).

Long Term Liabilities: SWKPLNT's short term assets (MYR272.8M) exceed its long term liabilities (MYR132.7M).

Debt to Equity History and Analysis

Debt Level: SWKPLNT has more cash than its total debt.

Reducing Debt: SWKPLNT's debt to equity ratio has reduced from 22.9% to 7.3% over the past 5 years.

Debt Coverage: SWKPLNT's debt is well covered by operating cash flow (341.6%).

Interest Coverage: SWKPLNT earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

9.57%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SWKPLNT's dividend (9.57%) is higher than the bottom 25% of dividend payers in the MY market (2.15%).

High Dividend: SWKPLNT's dividend (9.57%) is in the top 25% of dividend payers in the MY market (4.94%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.9%), SWKPLNT's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (39%), SWKPLNT's dividend payments are well covered by cash flows.

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Management

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

6.2yrs

Average management tenure

CEO

Sarawak Plantation Berhad has no CEO, or we have no data on them.

Leadership Team

Experienced Management: SWKPLNT's management team is seasoned and experienced (6.2 years average tenure).

Board Members

Experienced Board: SWKPLNT's board of directors are considered experienced (3.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31