Dear Friends of i3 Forum,

For few years now Investment Banks/ Malaysian Media have been constantly posting NEUTRAL Calls on Palm oil

Time after time; article after article telling us Palm oil cannot. It has high labour cost. High fertilizer cost, so on and so forth

In other words, telling all to stay away from palm oil shares of Malaysia

No wonder that aside from Malaysian Palm oil companies languishing in comparison to Palm oil shares listed in Singapore, Indonesia, Thailand, Nigeria & Ghana are all performing well

Now May 2023 Quarter Results are out for Palm Oil Companies

Let us take a Look at what These Malaysia Palm Oil Company Directors/Insiders are saying (Sorry, Media don't bother to post them except what Outsiders Research House forcast only

1) TSH RESOURCES (Refer KLSE BURSA WEBSITE)

TSH RESOURCES BERHAD Registration No : 197901005269 (49548-D) (Incorporated in Malaysia) 11

 Commentary on the prospects CPO price has been downtrending since May 2023 and is currently hovering around RM3,700 per MT. However, the direction of CPO price for the rest of the year will depend on how various influencing factors pan out.

The Indonesian government had recently announced that they will gradually ease palm oil domestic sales rules, which will allow more export of palm oil, and thus potentially lowering CPO price. On the other hand, weather related phenomenon such as El Nino may also impact edible oil supplies and prices, depending on the severity and timing of such occurrences.

Notwithstanding the uncertainty in the near term CPO price outlook, the Group remains optimistic on the long term prospect of the palm oil industry. Restrained hectarage growth in oil palm planting over the last few years due to RSPO regulations and Indonesian Government’s moratorium on deforestation, will have an impact over global palm oil supply.

Global population and per capita income growth as well as the many health qualities of palm oil are expected to drive greater demand for palm products. This augurs well for the Group as palm products segment will remain the core contributor to the Group. Underpinned by its strong financial position, the Group will strive to progressively increase the planted hectarage to maintain production growth. Barring any unforeseen circumstances, the Group is optimistic of achieving satisfactory performance for year 2023.

TSH remain optismistic

a) Restrained hectarage growth (no more extra competition unlike glove expansion in China)

b) Global population growth drive demand

c) Strong financial position (Cash inflows pared down TSH debt from Rm1.5 Billions to Rm95 mil only)

 Barring any unforeseen circumstances, the Group is optimistic of achieving satisfactory performance for year 2023.

Calvin comments:

Above is more sanguine than neutral

2. JAYA TIASA

JAYA TIASA HOLDINGS BHD [Registration No. 196001000095 ( 3751-V )] THIRD QUARTERLY REPORT FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2023 Explanatory notes pursuant to MFRS 134 and Appendix 9B of the Listing Requirements 12 19

Group’s Prospects Average price of CPO is expected to remain volatile in the near term due to strong competition from other edible oils coupled with improving crop production ahead of seasonal peak condition

Demand for CPO is expected to be affected due to slower spending patterns as a result of global inflation. The Group continues to emphasize on sustainable management of resources, effective cost control and improving productivity to lower the unit production cost. Barring any unforeseen circumstances

, the Group anticipates to achieve a satisfactory financial performance in the last quarter of financial year 2023

SATISFACTORY

3. TAANN (refer Bursa Website)

TA ANN HOLDINGS BERHAD Notes to the interim financial report 8 18

Current Year Prospects

Given the reduced supply base coupled with the stringent environmental control over logs harvesting against a post-Covid economy recovery in the region, it is anticipated that the demand for both tropical logs and plywood to be greater than the market supply, hence the timber price trend to remain stable.

The Group's emphasis on sustainable resource management, the Group has achieved an important milestone with the award of the long term FMU license valid from 2023 to 2053 covering a total areas of 346,021 hectares granted by the State Authority recently. For the palm oil division, the Group expects CPO price to remain firm over a longer term.

Meanwhile, the Group also stands to benefit from the current lower fertiliser prices as the manuring activities are ramping up. With the Group's continuous improvement mindset, operational efficiency and productivity remain our utmost priority. Barring from any unforeseen circumstances, the Board of Directors anticipates a satisfactory financial performance for the financial year 2023.

See these

a) it is anticipated that the demand for both tropical logs and plywood to be greater than the market supply, hence the timber price trend to remain stable.

b)  the Group expects CPO price to remain firm over a longer term.

c) Meanwhile, the Group also stands to benefit from the current lower fertiliser prices as the manuring activities are ramping up.

(FERTILIZER PRICES DROPPING!!!)

d)  With the Group's continuous improvement mindset, operational efficiency and productivity remain our utmost priority. Barring from any unforeseen circumstances, the Board of Directors anticipates a satisfactory financial performance for the financial year 2023.

4. THPLANT

Prospects

The performance of the Group would continue to be driven by the FFB production which is affected by labour shortage and global world edible oil price movement. As the country’s labour shortage continues to be addressed with the arrival of more foreign workers into Malaysia, particularly harvesters, the Group expects its Fresh Fruit Bunch (“FFB”) production in Malaysia to continue to improve in 2023 after a challenging two years.

However, demand may be impacted by the global economic outlook, which remains wary, because of continuing geopolitical uncertainties, inflationary pressures from high food and energy prices and an increase in the production of alternative oils. Nevertheless, the Group is cautiously optimistic mainly due to its well-established strategies to address the issues, and ongoing efforts to mitigate such challenges. The Group has also ramped up operational improvement initiatives to plug any leakages and reduce wastage. Barring any unforeseen circumstances, the Group expects to perform satisfactorily in FY2023.

5. BOUSTEAD PLANT

BOUSTEAD PLANTATIONS BERHAD 194601000012 (1245-M) 12 17.

Prospects for Rest of the Year

The Group’s profitability for this year is dependent on the price direction for CPO and crop production. Palm oil production in the first Quarter of 2023 had been adversely impacted by the heavy rainfall and flooding phenomenon in parts of Malaysia.

However, CPO production is forecasted to trend higher in second half of 2023 following the expected improvement in weather condition in the months ahead. Palm oil prices remained favourable in the first Quarter of 2023 driven by lower production of other vegetable oil in Ukraine due to ongoing war with Russia, rising biodiesel demand and increase in edible oil imports by China, among others

. Nevertheless, CPO prices are forecasted to weaken in the second half of 2023 due to expected higher CPO production season, high inventory level and subdue demand. The Group is optimistic that the gradual return of foreign workers would lift the FFB yield, which could partially offset the impact of lower CPO prices and rising costs.

The Group is optimistic that the gradual return of foreign workers would lift the FFB yield, which could partially offset the impact of lower CPO prices and rising costs.

RISING BIODISEL DEMAND!

INCREASE IN EDIBLE OIL DEMAND FROM CHINA

RETURN OF FOREIGN LABOUR LIFT UP FFB YIELD

BPLANT IS OPTIMISTIC!!!

So in Conclusion

EVERYTHING IS FINE WITH THE PALM OIL INDUSTRIES

What is wrong with Malaysia Research Houses & Media downgrading Palm OIl to Neutral???

Any Answers???

With Kind Regards

Calvin Tan

Please buy or sell after doing your own due diligence or consult your Fund Manager