JTIASA (4383) - Fundamental & Technical Analysis

November 12, 2019 | Hong Wei Giet

Technical Analysis

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 - JTIASA shares price has been slashed by 85% since its historical high which indicated Palm Oil counters' shares price is led by economic cyclical.

- It is not recommended to hold for the long term. More suitable to speculate method due to their company

More: https://www.fundamental-technical-analysis.com

JTIASA (4383) - 基本与技术分析

November 12, 2019 | Hong Wei Giet

技术分析

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- JTIASA的股价自其历史高位以来已下跌了85％，该历史高点表明棕榈油的股票价格受经济周期的影响。

- 不建议长期持有。其股票更适合于投机，因为公司业绩与棕榈油价格走势具有高度相关性。

更多： https://www.fundamental-technical-analysis.com

JTIASA

Based on a PER of 7x, JTIASA is worth RM 1.03.

While often used interchangeably, there are differences between trading and investing.  Firstly, they have different goals.

• Traders focus on generating short-term profits by taking advantage of price fluctuations
• Investors aim to build wealth over the long term by investing in fundamentally sound assets.

But there have been successful traders who incorporate fundamentals into their trading analysis

I would like to offer the ROE trend vs the share price trend as one toolkit for the traders.

The example for JTiasa below is one example.

While this is classified as under the Bursa Plantation sector, its ROE is worst than my 2 reference companies – BPlant and KLK. So I would not hunt here to look for long-term investment opportunity from a fundamental perspective.

But if you are a stock trader, wouldn’t you consider a rising ROE without a corresponding uptrend in price yet a trading opportunity?

Jaya Tiasa – tough to be profitable when firing on one cylinder

Jaya Tiasa has undergone a significant transformation since its inception as a timber company in the 1980s. The diversification into oil palm has shifted the Group's primary revenue source.

But without this shift, the company would be in trouble today.  Currently, the oil palm operation is the main profit driver. The timber segment faces declining production volumes due to policy shifts toward sustainable practices. The Group's reliance on oil palm highlights the critical need for a turnaround in the timber operations.

Looking ahead, the focus must be on improving operational efficiencies. This hinges on the readiness of the forest plantations to contribute to log supply. While the company has 2 business segments, only one is contributing to its bottom line. It is tough to be profitable when running one one cylinder with a 2 cylinder engine.