CARS & BUKI - Expecting Good Performance From Oil Palm Plantation Segment

I know, I do not collect any SHAL , INDO GOOD SELI shares . Thanks Sayon for reminding..

Hedge against commodity price volatility - Carson’s thrust into palm oil based manufacture in Malaysia & India


Carson Cumberbatch PLC, a major player in the global palm oil industry, last week announced the acquisition of a Malaysian oils and fats group with a strong presence in India in a Rs. 4.27 billion deal which gives it presence in value added products manufactured from palm oil.

The Sunday Island last week exclusively reported that this deal was in the pipeline and awaiting regulatory clearance.

A senior director of the Carsons Group said that this was the biggest recent acquisition of the group, remarking ``I can’t think of anything bigger we’ve done’’ and said that the investment will be part funded by internally generated cash and part by debt.

The acquisition involves the takeover of 100% of three of the operating entities of Premium Nutrients Bhd., a specialty fats manufacturer with operations in Malaysia and India.

The acquired entities are Premium Vegetable Oils Sdn. Bhd. and Premium Fats Sdn. Bhd., each with manufacturing facilities in Malaysia and Arani Agro Oil Industries Ltd. with a manufacturing plant in Andra Pradesh in India.

Carson’s said that Premium Nutrients is a pioneer in the edible oils and fats industry with a 25-year expertise in the manufacture of specialty fats for the bakery, confectionary, creamers and ice cream industries.

A total of 60,000 ha, of oil palm plantation have been developed by Carson’s in Malaysia and Indonesia with 40,000 ha. now mature. Crude palm oil production last year ran at 170,000 mt. and with expansion of plantations especially in Indonesia now slowing, larger players in the industry are sourcing new locations in other regions for land banks, Carson’s said in its latest annual report.

Entry into the downstream value addition chain will give Carson’s protection against volatile commodity price risks and also enable the company to earn better margins and value addition through specialty products, the company said.

The manufacturing facilities acquired encompass solvent extraction of palm kernel oil, refining of crude palm oil, palm kernel oil and coconut oil in addition to the manufacture of specialty fats, margarines and butter blends as well as servicing the animal feed industry.

The Premium Group exports specialty products to over 55 countries catering directly and indirectly to multinational players as well as regional brand leaders in chocolates, confectionary and bakery industries.

This group’s primary markets cut across the Middle East, CIS, Australia, China, North America India and Europe.

"A majority of the products are tailor made to customer requirements as food ingredients for reputed international brands,’’ Carson’s said.

seyon wrote:Hedge against commodity price volatility - Carson’s thrust into palm oil based manufacture in Malaysia & India


Carson Cumberbatch PLC, a major player in the global palm oil industry, last week announced the acquisition of a Malaysian oils and fats group with a strong presence in India in a Rs. 4.27 billion deal which gives it presence in value added products manufactured from palm oil.

The Sunday Island last week exclusively reported that this deal was in the pipeline and awaiting regulatory clearance.

A senior director of the Carsons Group said that this was the biggest recent acquisition of the group, remarking ``I can’t think of anything bigger we’ve done’’ and said that the investment will be part funded by internally generated cash and part by debt.

The acquisition involves the takeover of 100% of three of the operating entities of Premium Nutrients Bhd., a specialty fats manufacturer with operations in Malaysia and India.

The acquired entities are Premium Vegetable Oils Sdn. Bhd. and Premium Fats Sdn. Bhd., each with manufacturing facilities in Malaysia and Arani Agro Oil Industries Ltd. with a manufacturing plant in Andra Pradesh in India.

Carson’s said that Premium Nutrients is a pioneer in the edible oils and fats industry with a 25-year expertise in the manufacture of specialty fats for the bakery, confectionary, creamers and ice cream industries.

A total of 60,000 ha, of oil palm plantation have been developed by Carson’s in Malaysia and Indonesia with 40,000 ha. now mature. Crude palm oil production last year ran at 170,000 mt. and with expansion of plantations especially in Indonesia now slowing, larger players in the industry are sourcing new locations in other regions for land banks, Carson’s said in its latest annual report.

Entry into the downstream value addition chain will give Carson’s protection against volatile commodity price risks and also enable the company to earn better margins and value addition through specialty products, the company said.

The manufacturing facilities acquired encompass solvent extraction of palm kernel oil, refining of crude palm oil, palm kernel oil and coconut oil in addition to the manufacture of specialty fats, margarines and butter blends as well as servicing the animal feed industry.

The Premium Group exports specialty products to over 55 countries catering directly and indirectly to multinational players as well as regional brand leaders in chocolates, confectionary and bakery industries.

This group’s primary markets cut across the Middle East, CIS, Australia, China, North America India and Europe.

"A majority of the products are tailor made to customer requirements as food ingredients for reputed international brands,’’ Carson’s said.

…observed large volumes of GUAR and CARS traded and stayed green ...while most of the stocks were struggling with funds....

Some interesting info, i picked about Carsons recent acquisition. ( Premium Nutrition Bhd, which is listed in Malaysia stock exchange trading @ RM 0.245

Find the stock Name as " PREMIUM "
http://www.bursamalaysia.com/website/bm/market_information/prices/index.jsp

Find out Company audited account 31.12.2010

http://announcements.bursamalaysia.com/EDMS/subweb.nsf/all/69710D624CC34B8F4825788E003D0A89/$File/Premium%20Nutrients%20Berhad%20YE31%2012%202010%20dated%2012.5.2011%202.pdf

Annual Report
http://www.bursamalaysia.com/website/bm/listed_companies/company_announcements/annual_reports/index.jsp

Company website

http://www.premiumveg.com/premiumgroup.html

@sayon

Premium Nutrients Bhd. (PRNB MK), a palm oil processor, advanced 18 percent to 23.5 sen, the most since December 2009, after completing the sale of three of its main businesses to Agro Asia Pacific Ltd. for 118 million ringgit.



http://thingstodoinbostonthisweekend.com/malaysian-stocks-cahya-mata-lpi-premium-nutrients-ytl-power/

Aamiable wrote:
@sayon

Premium Nutrients Bhd. (PRNB MK), a palm oil processor, advanced 18 percent to 23.5 sen, the most since December 2009, after completing the sale of three of its main businesses to Agro Asia Pacific Ltd. for 118 million ringgit.

http://thingstodoinbostonthisweekend.com/malaysian-stocks-cahya-mata-lpi-premium-nutrients-ytl-power/

Agro Asia Pacific Ltd is wholly owned subsidiary of Goodhope Asia Holding.

seyon wrote:

Aamiable wrote:
@sayon

Premium Nutrients Bhd. (PRNB MK), a palm oil processor, advanced 18 percent to 23.5 sen, the most since December 2009, after completing the sale of three of its main businesses to Agro Asia Pacific Ltd. for 118 million ringgit.

http://thingstodoinbostonthisweekend.com/malaysian-stocks-cahya-mata-lpi-premium-nutrients-ytl-power/

Agro Asia Pacific Ltd is wholly owned subsidiary of Goodhope Asia Holding.

@sayon

Good hope did not move…observed again...large volumes of other stocks traded and stayed green ...while market badly needed new funds.......

CARS GUAR and BUKI have performed well today after a period of stabilization during the period of clearance. Few stocks survived during that period….waiting for next financials…

seyon wrote:Hedge against commodity price volatility - Carson’s thrust into palm oil based manufacture in Malaysia & India


Carson Cumberbatch PLC, a major player in the global palm oil industry, last week announced the acquisition of a Malaysian oils and fats group with a strong presence in India in a Rs. 4.27 billion deal which gives it presence in value added products manufactured from palm oil.

The Sunday Island last week exclusively reported that this deal was in the pipeline and awaiting regulatory clearance.

A senior director of the Carsons Group said that this was the biggest recent acquisition of the group, remarking ``I can’t think of anything bigger we’ve done’’ and said that the investment will be part funded by internally generated cash and part by debt.

The acquisition involves the takeover of 100% of three of the operating entities of Premium Nutrients Bhd., a specialty fats manufacturer with operations in Malaysia and India.

The acquired entities are Premium Vegetable Oils Sdn. Bhd. and Premium Fats Sdn. Bhd., each with manufacturing facilities in Malaysia and Arani Agro Oil Industries Ltd. with a manufacturing plant in Andra Pradesh in India.

Carson’s said that Premium Nutrients is a pioneer in the edible oils and fats industry with a 25-year expertise in the manufacture of specialty fats for the bakery, confectionary, creamers and ice cream industries.

A total of 60,000 ha, of oil palm plantation have been developed by Carson’s in Malaysia and Indonesia with 40,000 ha. now mature. Crude palm oil production last year ran at 170,000 mt. and with expansion of plantations especially in Indonesia now slowing, larger players in the industry are sourcing new locations in other regions for land banks, Carson’s said in its latest annual report.

Entry into the downstream value addition chain will give Carson’s protection against volatile commodity price risks and also enable the company to earn better margins and value addition through specialty products, the company said.

The manufacturing facilities acquired encompass solvent extraction of palm kernel oil, refining of crude palm oil, palm kernel oil and coconut oil in addition to the manufacture of specialty fats, margarines and butter blends as well as servicing the animal feed industry.

The Premium Group exports specialty products to over 55 countries catering directly and indirectly to multinational players as well as regional brand leaders in chocolates, confectionary and bakery industries.

This group’s primary markets cut across the Middle East, CIS, Australia, China, North America India and Europe.

"A majority of the products are tailor made to customer requirements as food ingredients for reputed international brands,’’ Carson’s said.

can these stocks come out with good financials next quarter ? BRWN seem to be good. banks may do well. what about investment trusts...like CINV..

Yes, CARS and BUKI we can expect good performance from the Group, However the next quarter would be very much impressive as performance from the premium nutrition group ( newly acquired) will be consolidated with CARS.

Further CINV and GUAR look very attractive price level ( at discount ) compare to their NAV . SHL capital gain will be highlighted in next quarter.

seyon wrote:Yes, CARS and BUKI we can expect good performance from the Group, However the next quarter would be very much impressive as performance from the premium nutrition group ( newly acquired) will be consolidated with CARS.

Further CINV and GUAR look very attractive price level ( at discount ) compare to their NAV . SHL capital gain will be highlighted in next quarter.

@sayon

Your genuine opinion is always respected……. Hope financials are not misguiding like BFL. ….I always go by corporate earnings and NAPV of investment funds….. Hope financials would be good as you predict…… I know that, no body can predict 100 percent accurately…… According to past performance, ....previous levels of financial positions may continue to be maintained…..GUAR and CINV are picking up..

@sayon

Thanks sayon for your genuine and reliable analysis..... As you have predicted CARS has made extraordinary 5.77bn profits 182% increase and BUKI after tax profit of Rs.6.85bn 147% increase for the period. .....No wonder entire Colombo stock market shows an upward momentum.

Aamiable wrote:@sayon

Thanks sayon for your genuine and reliable analysis..... As you have predicted CARS has made extraordinary 5.77bn profits 182% increase and BUKI after tax profit of Rs.6.85bn 147% increase for the period. .....No wonder entire Colombo stock market shows an upward momentum.

Yes We already predicted about the outstanding performance, Next quarters we expects outstanding performance from these group, since new acquisition of premium nutrition will be consolidated with CARS Further sale SHL also will boost the company performance.

If u really analyze 5.7Bn profit, 1.4Bn is capital gain from their restructuring palm oil companies, so the balance would be around 4.3Bn it is doubled comparing with previous year quarter

However, at present CARS and BUKI are stagnating for nearly 6 Months, that may be due to Some of these shares were given to minority share holders of Oil Palm companies ( GOOD,SHAL,INDO,SELI) for the restructure. Those shares are on selling side.Thurston Investments Limited Pershing LLC S/A Averbach Grauson & Co. Employees Provident Fund and Some HNWI are collecting side.

Definitely CARS group time to time have a run, Will see the next run.

@sayon ....EPS, some invertors and foreign buyers seem be interested…. Recent foreign buying was mainly on these sectors. ……….Their excessive cash position and capital gains makes them an added strength to CSE. ………..Large capitalization can push the ASI up in few days. ...most of the stocks in the group recorded increasing profits…………….CSE need more funds to move up....Overall it is good for the CSE if foreign and local investments, more funds can be attracted at this time of slow recovering phase to consolidate stock market…..

seyon wrote:

Aamiable wrote:

@sayon

As you have expected entire group seem to perform well.

May have to keep an eye on CARS BUKI GUAR and GOOD.N as well, CARS 9.72 billion profits , Bukit Darah 10.15 profits, GUAR 3.01 billion profits, cumulative over twenty billion profits recorded within a group. Largest in the CSE.... They also recovered ownership of their own shares recently..... and new strategic investments made after registering record levels of profits..... Acquisition and expansion of businesses brings immense value addition to group as well as for the PLC The Good Hope....

http://www.cse.lk/cmt/uploadAnnounceFiles/8421309752365_502.pdf


http://www.cse.lk/cmt/uploadAnnounceFiles/1721310035471_456.pdf

Watch the investment arm GUAR as well. GOOD.N also becomes a larger entity.


It is possible to keep very good hopes.

Hi Aamiable

Are there any special reasons for u to have interest on GOOD ( Goodhope Plc), I think u may confuse on the names. as per my understanding Goodhope Plc and GoodHope Asis Holding are the different entity, CARS restructured their plantation companies ( SHAL, INDO ,SELI and GOOD ) under the umbrella of GoodHope Aisa Holding (GHAL), which is incorporated in Singapore. the new acquisition also made through this company (GHAL). I was told that these four companies ( SHAL,INDO,SELI and GOOD) are going to be delisted in CSE and planning to list GHAL stake partly in Singapore and Sri Lanaka. ( I am not sure about this info)

Anyhow CARS,BUKI,GUAR and CINV are good long term investment. I am sure that, oneday CARS would be 1st MarketCap in CSE.

Happy Trading.

Thanks for recap. SHAL, INDO, SELI are going to be de -listed.

Aamiable wrote:@sayon ....EPS, some invertors and foreign buyers seem be interested…. Recent foreign buying was mainly on these sectors. ……….Their excessive cash position and capital gains makes them an added strength to CSE. ………..Large capitalization can push the ASI up in few days. ...most of the stocks in the group recorded increasing profits…………….CSE need more funds to move up....Overall it is good for the CSE if foreign and local investments, more funds can be attracted at this time of slow recovering phase to consolidate stock market…..

My guess is outstanding quarter results will give good impact to the share price for the CARS group, Some of the HNWI and Institutional share holders are collection board. Will see.

Crown for Carson

Achieves Rs. 4.37 b profit in 1Q from core business; With one-off gain Group post-tax profit a staggering Rs. 5.7 b; Net profit attributable to equity holders up 195% to Rs. 3.5 b

Carson Cumberbatch Plc has established a record for the highest ever profit for a quarter by a listed entity.
The Group recorded a profit after tax of Rs.5.77 billion, which includes a one off book gain of Rs. 1.4 billion resulting from a Group restructuring exercise carried out during the quarter.
The restructure involved an offer to acquire shares of the minority shareholders of the Malaysian oil palm firms, in exchange for Bukit Darah shares held by Carson on a pre-agreed basis.

The transfer of these Bukit Darah shares to minority shareholders during the restructure process, resulted in the parent company booking a capital gain of Rs.1.4 billion.
However in a review accompanying interim results Carsons said: “These profits do not form part of the recurring profits of the core businesses and is a one off gain recorded due to the restructure.” The profits arising from the core businesses amounted to Rs.4.37 billion, it added.
Analysts said that within this Rs. 4.37 billion is a further Rs. 1.4 billion which originated from capital gains from the sale of long-held strategic stakes as part of investment portfolio.
Even if this figure was discounted, Carsons ending the first quarter with Rs. 2.9 billion up from Rs. 2 billion is a noteworthy achievement according to company analysts.
Net profit attributable to equity holders was Rs. 3.5 billion, up by 195% over the first quarter of last year.
In 2010/11 financial year Carson produced its best results with a bottom line of Rs. 4.6 billion whilst after-tax profit was Rs. 9.72 billion and pre-tax amounted to Rs. 12.3 billion.
The current year’s first quarter of Carson profit figure from different levels is the best ever produced in a quarter analysts added. The core profit of Rs. 4.3 billion is also above the biggest ever profit (Rs. 4 billion) reported by a listed entity in the first half – Commercial Bank. Premier blue chip JKH reported a Rs. 1.3 billion net profit (up 35%) in the first quarter which is not a traditionally strong period whilst its best quarters are usually third and fourth.
Carsons said the core businesses all recorded good growth in profits reflecting both the vibrant emerging economic opportunities in Sri Lanka and buoyant global commodity prices. The investment and brewery businesses each felt the benefits of the strong resurgence in investor and consumer confidence which translated to buoyant conditions on the Bourse and greater spending power amongst consumers. The brewery business, however, decided to exit from its investment in India and recover its investment cost on the basis that it would be preferable to focus on the Sri Lankan market which offers immediate prospects for growth, as opposed to India which requires continued capital commitments over the long term to establish a market presence. The transaction is awaiting regulatory clearance. The leisure sector recorded an encouraging performance which is expected to gather momentum in the latter part of the year, led by the strong performance of the Sri Lankan tourism industry.
Global commodity prices and improved efficiencies and cost savings in the plantation business translated to better earnings from this sector. The plantation business ventured into the downstream segment of the oil palm industry with the acquisition of three operating entities held by Premium Nutrients Berhad, a specialty fats manufacturer, with operations in Malaysia and India. This acquisition which took place in July, is expected to strengthen the business model of the plantation business by enhancing its scope for value addition and enabling better risk management by mitigation of the risk exposure to commodity prices.
The consolidated net assets attributable to Carsons shareholders stood at Rs.25 billion, while its market capitalisation stood at Rs.118 billion as at the end of the quarter.

http://www.ft.lk/2011/08/16/crown-for-carson/

Carson Cumberbatch Plc has established a record for the highest ever profit for a quarter by a listed entity.


Market is green CARS GUAR and BUKI....again three of the main contributes to an up trend...

Aamiable wrote:Carson Cumberbatch Plc has established a record for the highest ever profit for a quarter by a listed entity.


Market is green CARS GUAR and BUKI....again three of the main contributes to an up trend...

Certainly, this group will have good run in very short time, CINV and GUAR are very attractive price, once the bluship companies started to run, these value also will get boosted.

So we can expect good run from these companies, this would be the good time.