Sunday, 9 August 2020

Kim Loong (8th Sep 2020) - EP 1.40

 Main Area

1) Plantation Operation

2) Milling Operation


LandBank -  Plantation 15,826 hectares


Operation

Johor (Kota Tinggi)

- Palm oil mill (100MT FFB/HR) 

- Oil Palm Estate (1,133 Ha)

Sabah (Telupid)

- Palm oil mill (60MT FFB/HR) 

- Palm Oil Estate (1,996 Ha)

Sabah (Keningau)

- Palm oil mill (90MT FFB/HR) 

- Palm Oil Estate (7,191 Ha)

Sabah (Sandakan)

- Palm Oil Estate (2,731 Ha)

Sarawak (Sg.Tenggang/Kranggas)

- Palm Oil Estate (10,471 Ha)

General Info

• 1 acre is generally planted with 55 palms. 

• 1 hectare is generally planted with 135 palms. 

• 1 acre of mature palm can generally produce an average 0.8 MT of Fresh Fruit Bunch/month. 

• 1 hectare of mature palm can generally produce an average 2 MT of Fresh Fruit Bunch/Month. 

• 1 Metric Ton (MT) of Fresh Fruit Bunch (FFB) can generally produce 200 kg or 20% of Crude Palm Oil (CPO) and 50kg or 5% of Kernel

>> Malaysia National FFB - 17.2 MT/Ha

>> Malaysia National CPO - 3.47 MT/Ha

Calculation:

Unit cost of production - RM1600 / MT CPO

15,826 * 1MT (conservative) = 15,826 MT FFB/month

15,826 MT FFB * 15% = 2373.9 MT CPO/month

2374 MT * (RM2400 -RM1600) =  RM1.9 million / month        


Conclusion:

Kim Loong had acquired 2862 acres in sabah, it will continues to bring revenue to the company.

Pros- From the figure, we can see that extraction rate of CPO and PK is way above Msia standard. 

Biodiesel generates another revenue to the company, Indonesia is encouraging on B30, it will place a cushion on the CPO price. 

Net-Cash company


Cons- This company very depending on the CPO price, if CPO price above Rm2k, it will benefited.

High Capex company.