CBIP (7076) : CB INDUSTRIAL PRODUCT HOLDING BERHAD

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CBIP (7076) : CB INDUSTRIAL PRODUCT HOLDING BERHAD
okass87 Posts: 176 Joined: Dec 2011	20 Mar 2014, 10:05 PMPost #21
	http://www.cbip.com.my/main/pdf/post-fourth-quater-2013-results-update.pdf
okass87 Posts: 176 Joined: Dec 2011	23 Mar 2014, 08:09 PMPost #22
	CB工业新合约陆续有来 (吉隆坡18日讯)CB工业產品（CBIP，7076，主板工业股）获得在巴布亚新几內亚兴建棕油厂合约的消息，激励股价走高，分析员普遍认为这是一个好的开端，更多的合约將陆续有来。 CB工业產品今日一度上涨至4.43令吉，最终收在4.40令吉，上涨11仙，或2.56%，是今日第23大上升股，全天成交量达77万9700股。 CB工业產品获得常青（PNG）集团子公司Gilford有限公司，颁发一项价值4600万令吉，在巴布亚新几內亚兴建每小时60公吨持续杀酵的棕油厂。肯纳格研究分析员指出，这是CB工业產品获得来自常青集团的第一项工厂合约。由于常青集团旗下还有其他已经成熟的园丘，因此，更多的合约相信將陆续有来。假设这项计划的息税前赚幅是23%，有关合约將为CB工业產品带来970万令吉的净利。分析员认为，以CB工业產品的棕油厂製造业务，在2013財政年的25.7%赚幅而言，23%的赚幅预测相信仍是保守的。提升订单总额分析员指出，这项合约將提升CB工业產品的订单总额，估计约为4亿8000万令吉。这也表示，其棕油厂製造业务至2015年第3季的净利都已经有著落。而丰隆投行分析员则指出，由于种植土地规模扩大，兴建棕油厂的需求也隨之增加，因此，获得这项新合约是在市场的预期之中，他也指出，这项4600万令吉的合约，预计將在2014及2015財政年陆续认列。至今为止，CB工业產品已经公佈的合约，预计將提高该公司棕油厂工程部门的未入账销售至4亿8570万令吉，相等于该部门在2013年营业额的1.53倍。丰隆投行分析员將CB工业產品2014及2015財政年的净利预测上调1-14%，以反映该公司將获得更多的合约，以及特別用途工具部门更高的息税前赚幅。分析员预计该公司2 0 1 4 及2015財政年可获得的合约，分別达到4亿令吉，及3亿5000万令吉。而肯纳格研究分析员维持2014及2015財政年的核心净利预测，分別在9800万及1亿令吉。分析员相信，CB工业產品在2014年將可获得更多棕油厂的建筑合约，而赚幅相信也將会进一步改善。分析员维持「超越大市」的评级以及4.42令吉的目標价，並指出，由于该股目前的市值已经超越11亿令吉，因此，近期內有望吸引更大型基金的投资。此外，棕油价格走势是影响该公司表现关键因素。丰隆投行分析员则將该股的目標价上调19.6%，至4.48令吉，以反映该公司更高的净利预测，以及印尼种植地更高的估值。分析员指出，CB工业產品的优势是，盈利可见度高及有强稳的资產负债表。但由于股价今年以来已经上涨33.2%，因此，进一步上涨的空间有限，分析员维持「守住」建议。 http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=106450:cb&Itemid=198[/url]
okass87 Posts: 176 Joined: Dec 2011	08 Apr 2014, 10:27 PMPost #23
	CB工业获3850万合约（吉隆坡7日讯）CB工业产品（CBIP，7076，主板工业产品股）向马交所报备，获森那美种植私人有限公司颁发，总值3850万令吉的建筑合约。根据文告，CB工业产品独资子公司Modipalm工程私人有限公司将为森那美种植的利比里亚种植地上，兴建棕油处理厂房。 http://www.nanyang.com/node/612554?tid=462
okass87 Posts: 176 Joined: Dec 2011	08 Apr 2014, 10:31 PMPost #24
	CB Industrial Product - Won RM38.5m Contract In Liberia News CB Industrial Product Holding (CBIP) has announced that it has been awarded a contract from Sime Darby (SIME) to build a 30 MT/hour Continuous Sterilisation (CS) palm oil mill in Liberia. We gather that the total value of the contract is RM38.5m. Comments We are positive on the news as this should further strengthen CBIP’s order book. Assuming EBIT margin of 23% for this project, this should translate into RM8.9m to CBIP’s bottom line. Our assumptions are considered conservative as compared to CBIP’s POMM division margin of 25.7% in FY13. Outlook This contract should further boost CBIP’s total outstanding orderbook to an estimated level of RM500m, which means earnings visibility until 3QFY15 for its palm oil mill manufacturing (POMM) division. Forecast Maintain our core earnings forecast for both FY14E (RM98m) and FY15E (RM100m) as we have factored in the potential contract win in our assumption. Rating Maintain OUTPERFORM We continue to like CBIP as it is poised to capture strong demand for palm oil mills in 2014 and for its steady margin improvement historically. Valuation Increased our Target Price to RM4.80 based on a higher Fwd. PER of 13.0x (from 12.0x) on CY14E EPS of 36.9 sen. Our Fwd. PER of 13.0x reflects a 2.0x premium against Small Cap Fwd. PE of 11.0x. As CBIP’s liquidity and market cap have exceeded RM1.2b, the stock may attract the attention of larger funds in the near-term. Risks Lower-than-expected contract win for its POMM division. Lower-than-expected margin for retrofitting special purpose vehicle (RSPV) division. Lower-than- expected CPO prices. Source: Kenanga http://klse.i3investor.com/servlets/ptres/22329.jsp
okass87 Posts: 176 Joined: Dec 2011	19 Apr 2014, 04:14 PMPost #25
	http://www.thestar.com.my/Business/Business-News/2014/04/19/Big-firms-taking-notice-of-CBIP-Companys-growth-underpinned-by-new-clients-and-markets/
Asriel Posts: 149 Joined: May 2012	20 Apr 2014, 05:47 PMPost #26
	...okass87 @ 19 Apr 2014, 04:14 PM Thanks Okass87 for sharing the QUOTE.
okass87 Posts: 176 Joined: Dec 2011	24 Apr 2014, 09:58 PMPost #27
	http://www.theedgemalaysia.com/business-news/286670-hot-stock-cbip-rises-4-on-expectation-to-win-more-contracts.html
okass87 Posts: 176 Joined: Dec 2011	30 May 2014, 12:24 PMPost #28
	KUALA LUMPUR: CB Industrial Product Holding Bhd (CBIP) said contributions from its plantation and milling divisions will be increasingly significant in future. “We have a plantation development plan over the next 10 to 15 years to develop 6,000ha of land per year to create more stable future income,” CBIP director Mak Chee Meng told reporters after the company’s annual general meeting yesterday. With some 5,000ha of land planted in the first quarter ended March 31, 2014 (1QFY14), CBIP’s plantation segment recorded revenue of RM193,000. This was a remarkable surge from RM7,000 a year ago. Already the landlord of 65,000ha of land in Kalimantan Tengah Indonesia, CBIP is also planning an expansion of its plantation landbank to 80,000ha. The company is already “half way in the process” of negotiating with Indonesian authorities for the additional 15,000ha land. “We are waiting for authorities’ approval and going through the legal process,” said Mak. Meanwhile, the equipment and engineering division will continue to be the biggest contributor to the company’s earnings at 56% in 2013. CBIP hopes to extend its lead in the global market with a 30% increase in palm oil mills by acquiring clients. “Many plantation owners are starting to realise that [our milling process] is superior [to] others. [Many] medium-sized and small plantation companies are coming to us,” said managing director Lim Chai Beng. The company is also planning to use its engineering expertise to venture into a “very specialised area” of the oil and gas (O&G) business, having acquired a 100% stake in TPG Oil & Gas Sdn Bhd in January this year. Its plans in the O&G sector remain in the shadows but Mak said: “We are not going into oil exploration, we are not going into oil rigs but we could be at a certain level start in ‘support services’.” The duo, however, expects that the O&G segment will contribute positively to the company’s earnings as early as 2015. CBIP’s 1QFY14 results showed a year-on-year increase of 25% in profit to RM23.29 million despite a 12% decrease in revenue to RM121 million. Its earnings per share went up 25% to 8.78 sen and shareholders can enjoy an interim dividend of five sen declared in the quarter. CBIP’s share price closed at RM4.54 yesterday. This article first appeared in The Edge Financial Daily, on May 30, 2014.
okass87 Posts: 176 Joined: Dec 2011	30 May 2014, 12:55 PMPost #29
	CB Industrial - Growing order book BUY - Maintain BUY on CB Industrial Product Holding Bhd (CBIP) with an unchanged fair value of RM5.15/share. Our fair value is based on an FY15F PE of 13x. - We consider CBIP’s 1QFY14 results to be within consensus estimates and our expectations. The group normally recognises the bulk of its progress billings in 2H of the financial year. Included in CBIP’s net profit was an RM2.9mil fair value gain on short-term investments. - CBIP’s 1QFY14 net profit grew by 24.7% YoY to RM23.3mil in spite of an 18.4% fall in turnover. The retro-fitting division recorded a 57.7% YoY slide in revenue in 1QFY14 due to lower number of contracts. - In contrast, turnover of the manufacturing division climbed by 22.6% YoY to RM88.7mil in 1QFY14 as the group received more jobs last year. - CBIP secured RM330mil contracts in FY13 against RM280mil in FY12. Earnings contribution from the contracts won in FY13 is expected to be reflected in FY14F’s financials. - Unbilled sales of the manufacturing division stood at RM440mil as at end-FY13. In FY14F, CBIP is anticipated to win more than RM350mil worth of mill construction contracts. - Pre-tax profit margin of the manufacturing division rose from 25.4% in 1QFY13 to 26.7% in 1QFY14 on the back of higher selling price and lower steel costs. We believe that the selling price of CBIP’s palm oil mills has risen a few percentage points over the past few years. - According to Bloomberg, the average price of cold-rolled steel declined by 2.7% from US$710/short tonne in 1QFY13 to US$690.77/short tonne in 1QFY14. - Earnings of the retro-fitting division fell by 56.9% YoY to RM2.3mil in 1QFY14. However, pre-tax margin of the division remained resilient, inching up from 7.0% in 1QFY13 to 7.2% in 1QFY14. - We believe that the retro-fitting division received only RM136.8mil in contracts in FY13. - In FY14F, the division is expected to win more than RM150mil worth of contracts, which imply that the unit’s profit growth would resume from FY15F onwards. - Unbilled sales of the retro-fitting division stood at RM215mil as at end-FY13. Source: AmeSecurities
okass87 Posts: 176 Joined: Dec 2011	30 May 2014, 10:35 PMPost #30
	（吉隆坡29日讯）棕油设备和工程，以及种植业务推动，CB工业产品（CBIP，7076，主板工业产品股）冀望在3年内取得10亿令吉营业额。该公司2013财年营业额达5亿9044万1000令吉。 CB工业产品董事经理林再明在股东大会后向媒体表示，棕油设备和工程的订单目前达4亿5000万令吉，预计今年杪至少达5亿令吉。同时，料该业务的市占率能够从去年的20%，在未来2年提高至30%。印尼拓油棕园 “不少业者认为我们提供的科技比其他公司卓越，包括节省劳工、棕油榨取率偏高等，这让公司在市场上的地位稳固，相信可达到30%市占率。” 此外，有很多中小型种植公司与CB工业产品接洽，尤其是在美国中部的公司。CB工业产品执行董事麦志明预计，种植业务在未来5年带来显著贡献。公司已拟定一项10至15年种植计划，每年种植6000公顷，以取得更稳定收入。 “在这项计划下，希望在印尼种植地库从目前6万5000公顷，扩大至8万公顷。”目前，仍洽谈在印尼收购额外的1万5000公顷的地皮。油气业务明年带来贡献 CB工业产品在今年1月购入一家油气公司后，将开发与市场不同的业务，希望该业务从明年开始为公司带来贡献。股东相当关注公司在油气领域的发展，且积极地向董事局提出相关问题。不过，林再明仅表示，目前仍处于初步阶段，不愿透露太多详情。他强调：“我们不会进行收购，也不会勘探油田，而是利用本身的工程专业知识，开发特别的业务。” 首季净利增25% 棕油设备业务盈利增加，及联号公司带来的贡献提高，CB工业产品截至3月31日首季净利按年增24.74%。公司首季净赚2328万7000令吉或每股8.78仙。不过，营业额减少18.40%，至1亿2103万9000令吉。同时，公司宣布派发每股5仙的第一次单层中期股息。 http://www.nanyang.com/node/624761?tid=462
okass87 Posts: 176 Joined: Dec 2011	24 Jun 2014, 10:17 PMPost #31
	CB 工业产品新收购长期有利 http://www.nanyang.com/node/630395?tid=709
okass87 Posts: 176 Joined: Dec 2011	24 Jun 2014, 10:20 PMPost #32
	CB工业印尼购地长期有利（吉隆坡23日讯）CB工业產品（CBIP，7076，主板工业股）收购印尼地库，逐步加强当地的种植业务，虽然分析员认为，这项收购短期对净利带来的影响不大，不过，长期將为公司带来持续的收入。 CB工业產品上週五宣布，与PT Manyangan Jaya正式签署股权买卖协议，以总值823万令吉收购后者的94%股权。PT Manyangan Jaya在印尼加里曼丹中部的Gunung Mas拥有2片土地，总面积为2万1674公顷。拉昔胡申研究分析员指出，第一幅土地有6267公顷的种植地，並拥有种植业务执照（IUP）；而第二幅土地则有1万3340公顷种植地和2067公顷的其他用途土地。肯纳格研究分析员和拉昔胡申研究分析员均认为，收购价相当於每公顷404令吉，比之前收购加里曼丹东区土地的价格低，不过相信这仍是合理水平，因为在这2万余公顷土地当中，仅有29%的土地，拥有种植业务执照。该公司於去年6月份完成加里曼丹东区的收购，每公顷土地成本达2732令吉，100%的土地均拥有种植业务执照。在CB工业產品完成这次的收购之后，公司的总地库面积將增加33%，至8万6715公顷，这有助于进一步扩大公司的种植业务。丰隆投行研究分析员指出，该收购活动將在2014年末季完成。分析员正面看待这项收购，並相信这符合该公司扩大上游业务，多元收入来源的策略。料获棕油厂合约肯纳格研究分析员表示，棕油树至少需要3岁才开始生產油棕，加上前期准备工作，及申请种植执照將需要耗时两年，因此，这项收购计划对公司短期影响不大。不过，长期而言，在原棕油价格看涨的趋势中，扩大上游业务预料將为公司带来长期持续的收入贡献。肯纳格研究分析员维持公司2014和2015財政年净利预测，分別为9800万令吉和1亿令吉。除此之外，这项收购计划，分析员也看好，CB工业產品短期內將贏得多项兴建棕油厂的工作，这也会带动公司的棕油厂设备业务走高，在2013財政年该业务佔税前盈利的64%。获1879万合约 CB工业產品在週一傍晚宣布，其独资子公司Modipalm工程私人有限公司於6月19日，与Extraceite签署一项价值1879万令吉的合约。负责后者在西班牙瓜地马拉的棕油厂，提供器材及工程，包括监督、安装、试运及启动服务。这家棕油厂初期產能为每小时22.5公吨鲜果串，並可以进一步扩充至每小时45公吨。这项合约预料將对公司2014財政年带来正面的盈利贡献。分析员看好该公司，主要是因为2014年棕油厂需求强劲，同时，CB工业產品盈利赚幅稳健提升，以及公司有1亿3200万令吉净现金，因此，肯纳格研究分析员维持该股「超越大市」投资评级和4.80令吉目標价。拉昔胡申研究分析员认为，这项收购不会对盈利带来及时的影响，因此，维持该股「中和」投资评级和4.95令吉合理价。丰隆投行研究分析员给予「守住」投资评级和4.48令吉目標价。 http://www.orientaldaily.com.my/~oriental/index.php?option=com_k2&view=item&id=123548:cb&Itemid=198[/url]
okass87 Posts: 176 Joined: Dec 2011	07 Aug 2014, 10:16 PMPost #33
	獲印尼棕油廠合約 CB工業盈利可見度佳財經7 Aug 2014 17:39 　（吉隆坡7日訊）市場普遍看好CB工業（CBIP，7076，主要板工業）獲得印尼建築棕油廠合約的消息，進一步推高總訂單數額至約5億2000萬令吉，顯示棕油廠建築的盈利可見度達至2015年末季。　肯納格證券研究正面看待此消息，估計這項價值4110萬令吉新工程具23%稅務與攤銷前盈利（EBIT）賺幅，將為CB工業淨利貢獻870萬令吉。　“我們維持2014和2015財年分別達9600萬令吉和9900萬令吉核心盈利預測，因已在早前注入獲得3億令吉新合約潛能。” 　CB工業持續趁勢于棕油廠的強勁需求，加上賺幅改善備受看好。故該行維持CB工業“跑贏大市”評級，並將合理價從4.85令吉上修至5.60令吉。這反映CB工業市值將超過12億令吉，相信可吸引更多大型機構投資者。　同時，該公司料需至少額外5年時間，才能將種植業務轉為主要盈利貢獻，屆時才可以純種植業者作估值。　另外，大馬投資研究估計CB工業年初至今共獲得1億6100萬令吉建築合約，相信本財年一共可獲取3億5000萬令吉合約，對比2013財年為3億2000萬令吉合約。　報告稱，該公司料從海外獲取更多合約，其中25%到30%的工廠建築合約料源自南美、非洲和巴布亞新幾內亞（Papua New Guinea）。其余70%到75%合約，來自大馬和印尼企業。　CB工業以4.67令吉開市，休市報4.71令吉，起4仙；截至下午4時半報4.71令吉，起4仙，成交量43萬400股。 http://www.chinapress.com.my/node/549815
okass87 Posts: 176 Joined: Dec 2011	17 Aug 2014, 01:10 AMPost #34
	Bonus issues to help improve liquidity of CBIP shares http://www.theedgemalaysia.com/business-news/302496-bonus-issues-to-help-improve-liquidity-of-cbip-shares.html
okass87 Posts: 176 Joined: Dec 2011	17 Aug 2014, 01:12 AMPost #35
	红股计划激励　CB势如破竹飆涨18仙（吉隆坡12日讯）分析员正面看待CB工业產品（CBIP，7076，主板工业股）昨日建议的派送红股与凭单计划，因为可进一步提升其股票流通量。该股在周二势如破竹，全天上涨18仙或3.727%，以5.01令吉掛收，成为第11大上升股。 CB工业產品在昨天宣布，该公司建议以1送1比例派送红股，並以3送1比例配送凭单。该公司在红股及凭单计划下，將发出2亿7200万8473股新股和9066万9491张凭单。该公司在文告中指出，通过以上计划回馈股东，同时提高股票流通量。此外，一旦股东执行凭单转换，將为公司带来额外资金，以充当公司的营运资本和资本开销。在红股计划激励下，CB工业產品今天以5.03令吉高开，並多次上探全天最高水平5.10令吉，涨27仙或5.59%。不过，该股隨后回吐部分涨幅，最终以5.01令吉闭市，全天起18仙或3.73%。其全天成交量为167万3100股，高於昨日的79万6300股。兴业投行分析员表示，CB工业產品5日加权平均价格为每股4.70令吉，而凭单行使价格为每股2.82令吉，相较红股除权后的2.35令吉理论价，高出20%。同时，该分析员指出，若是9067万张凭单皆被股东行使，以每股2.82令吉参阅价计算，料將筹集2亿5570万令吉，以充当公司资本开销及营运资本。有鑑于以上红股和凭单计划，可提升CB工业產品股票流通量，所以兴业投行分析员对该建议抱持正面態度。基本面仍强劲该分析员补充说，假设全部凭单被行使，该公司的每股盈利预料將被稀释16.7%，而从凭单计划所筹集资金，预料將使该公司取得更高的利息收入，这將略微抵消每股盈利被稀释的衝击，所以每股盈利净稀释幅度料为10%至11%。肯纳格研究分析员补充说，CB工业產品的基本面依然强劲。该分析员预测，其原棕油厂製造业务持有总值约5亿2000万令吉的合约订单，可支撑该公司的盈利能见度至2015財政年末季。因此，维持该公司2014及2015財政年的核心净利预测，分別为9600万令吉及9900万令吉。与此同时，肯纳格研究分析员维持该股「跑贏大市」投资评级，及5.60令吉目標价。然而，丰隆投行分析员则表示，虽然该公司有强劲的盈利能见度，但以目前的估值来看，相信其股价上涨空间有限。因此，维持该股「守住」投资评级，目標价为4.48令吉。兴业投行则维持「中和」投资评级，及4.95令吉目標价。 http://www.orientaldaily.com.my/index.php?option=com_k2&view=item&id=131981:cb-18&Itemid=198[/url]
okass87 Posts: 176 Joined: Dec 2011	17 Sep 2014, 09:48 PMPost #36
	CB Industrial Product may face 11% earnings risk in FY15 http://www.theedgemalaysia.com/business-news/307613-cb-industrial-product-may-face-11-earnings-risk-in-fy15.html
okass87 Posts: 176 Joined: Dec 2011	25 Jan 2015, 01:49 PMPost #37
	CB Industrial bags RM31m contract to supply Modipalm mill By Chester Tay / theedgemarkets.com \| January 23, 2015 : 7:09 PM MYT KUALA LUMPUR (Jan 23): CB Industrial Product Holding Bhd (CBIP) ( Financial Dashboard) has received a contract worth RM31.32 million to supply a Modipalm mill to Thai Eastern Trat Co Ltd. According to CBIP (fundamental: 3; valuation: 2.4)’s filing to Bursa Malaysia today, its responsibilities under the contract includes design, supply, fabrication, delivery to site, erection, testing, commissioning and guarantee of performance for construction of 30/45 metric tonnes per hour Modipalm Continuous Sterilization palm oil mill at Mueang Trat, Thailand. CBIP said the contract is expected to contribute positively to its earnings for financial years ending Dec 31, 2015 and 2016. The stock inched up one sen or 0.5% to RM2.02, giving it a market capitalisation of RM1.07 billion. http://www.theedgemarkets.com/my ... m-mill?type=Markets
okass87 Posts: 176 Joined: Dec 2011	27 Feb 2015, 07:29 PMPost #38
	CBIP’s long-term prospects remain bright KUCHING: CB Industrial Product Holding Bhd’s (CBIP) long-term prospects remain bright as it continues to actively bid for contracts to replenish its orderbook. Following a company’s briefing recently, AllianceDBS Research Sdn Bhd (AllianceDBS Research) said CBIP is confident to secure sizeable contracts over the next three to six months’ time. Additionally, the company’s total orderbook remained strong at about RM600 million as at end of 2014. AllianceDBS Research observed that the orderbook comprised of RM500 million for the palm oil engineering division and RM100 million for the special purpose vehicles segment. Besides that, the research firm believes the potential commercialisation of CBIP’s new plantation waste management system with zero discharge by 2016 would serve as another earnings driver for the group. In the meantime, it foresees CBIP’s near term earnings to be moderate as a result of higher effective tax rate. The company’s pioneer status for Modipalm mill will expire end of this month and is unlikely to be renewed. Thus, the research firm expects the company’s effective tax rate for financial year 2015 (FY15) to FY16 to normalise at 23 per cent and 24 per cent respectively. Meanwhile, CBIP which released its fourth quarter 2014 (4Q14) financial results on February 25 saw its earnings dropped 34 per cent year-on-year (y-o-y) to RM25.66 million. At the same time, the company said its revenue in 4Q14 grew 6.2 per cent y-o-y to RM170.5 million. For financial year 2014 (FY14), CBIP’snet profit decreased 5.8 per cent y-o-y to RM92.67 million while turnover fell 4.2 per cent y-o-y to RM565.36 million. In its notes accompanying the financial performance, CBIP explained that the lower turnover generated in FY14 was attributed to lower project billing by the special purpose vehicles segment. Additionally, the reduced profit before tax achieved in FY14 was due to lower contribution by the special purpose vehicles segment, lower share of results from associates as well as higher losses incurred by its oil palm plantation segment as compared with FY13. Read more: http://www.theborneopost.com/2015/02/27/cbips-long-term-prospects-remain-bright/#ixzz3SwaVLPQ1
okass87 Posts: 176 Joined: Dec 2011	25 Apr 2015, 01:46 PMPost #39
	Latest Share Buy Back: 30,000 units Cumulative net outstanding treasury shares as at to-date: 7,268,527 units
okass87 Posts: 176 Joined: Dec 2011	25 Apr 2015, 03:59 PMPost #40
	CBIP shows why it is a leader in extracting oil from the palm fruit THE plantation industry is all about economies of scale and in the palm oil milling process, every drop of oil to be squeezed from the palm fruit counts. A key measure of palm oil milling efficiency is how much oil it can extract from a fruit bunch. The higher the extraction rate, the more money the mill can make, assuming that it can keep production cost down. To improve their milling process, big plantation companies like Sime Darby Bhd, United Plantations Bhd and PT Astra Agro Lestari have turned to specialist CB Industrial Product Holdings Bhd (CBIP), for the company’s Modipalm mill. “We are building on average one mill per month at our plant here,’’ CBIP managing director Lim Chai Beng tells StarBizWeek. “All the prefabrication work for the Modipalm mill, the parts needed for the mill, are all done here. The mill can be shipped and assembled anywhere in the world,’’ he says. Last week, CBIP secured its 100th Modipalm mill order from a client in Indonesia. Lim says the company has a healthy pipeline of new orders coming in from local planters and Indonesian clients. The recent RM25.5mil mill contract lifted the group’s order book for the year to RM106.6mil. Analysts expects the group to secure around RM300mil worth of new orders this year. “The latest job listed CBIP’s total outstanding order book to above RM500mil, which means earnings visibility until the fourth quarter of 2015 for its palm oil mill equipment division,’’ Kenanga Research says. The palm oil engineering business generated about RM400mil in sales last year and commands a healthy margin of 22%, according to Kenanga. But the expiry of the pioneer tax status for its Modipalm continuous sterilisation process this year would dent net profit contribution from the division, analysts say. To boost sales and profits, Lim says the company is focusing on new milling technology, particularly on waste and effluent management for its Modipalm mill. “Over the past decade or so, we have made a lot of refinement and enhancement to the Modipalm continuous sterilisation system, resulting in cleaner, more reliable and efficient mill,” Lim says. CBIP had been selling Modipalm mills since 2003. To overcome an initial issues of chain breakages at its continuous steriliser mechanism, the company has come up with double deck system and strengthened the links from 20 tonnes to 50 tonnes. This increases the service factor by 150%, Lim said, while chain durability is now expected to last five years. Even the layout of the Modipalm mill was changed to comply with the new safety and environmental regulations. “Our new mills are designed and built to same standard in the food processing industry,’’ Lim says. And key players in the industry are taking note of the progress. Earlier this month, the company secured a RM49.8mil contract from United Plantations Bhd to design and build a mill with a processing capacity of 60 tonnes of fresh fruit bunches an hour. Apart from building new mills, Lim says the company is seeing rising demand from plantation owners to convert and upgrade their older mills. He cites key advantages of the Modipalm mill system over conventional mills; higher oil extraction yield, lower operating and maintenace cost, and higher safety standards. Lim claims that Modiplam mill owners could save as much as RM1mil a year compared with a similar sized conventional mill from lower labour cost and maintenance alone. Over the past ten years, Modipalm mills have gained international recognition and are currently operating in countries around the region, to as far as Central America, Africa and Papua New Guinea. There are more than 40 Modipalm mills in Malaysia, which is about 15% of the total number of palm oil processing mills in the country. CBIP made a net profit of RM92.7mil on revenue of RM565.4mil for the financial year ended Dec 31, 2014. The company, however, is facing a tougher year ahead due to the weak CPO selling prices and a higher effective tax rate following the expiry of its pioneer status. Kenanga Research estimates that earnings in financial year 2015 to contract to RM84mil (15.9 sen a share), before recovering to RM105mil (19.9 sen a share) in financial year 2016. Shares in CBIP was last traded at RM2.07 yesterday. The stock was able to command a higher valuation compared with peers because of its orderbook-based earnings, Kenanga says. The downside risk, however, is the unpredictable nature of the group’s retrofitting and maintenance of special vehicles division. Revenue CBIP, through a subsidary, supplies ambulances and fire fighting vehicle to the Government. Last year, the division generated some RM150mil in revenue, down from about RM250mil in financial year 2013. The unit, AVP Engineering (M) Sdn Bhd, supplies about 200 units of vehicles to the Health Ministry a year. CBIP also has its own palm oil plantation business. In Indonesia, the group has 70,000 ha of greenfield project in Kalimantan Tengah. So far, more than 6,000 ha had been planted, but the plantation has yet to make significant contribution to the group. “We continue to plant aggressively in Kalimantan Tengah and expect contribution to commence in 2016,” Lim says. Apart from its Indonesian venture, CBIP is also in a joint venture with Tradewind Plantations with a total planted area of 20,000 ha in Sarawak. Lim says the company is considering exiting from the joint venture to focus on its own greenfield project in Indonesia. Indonesia, the world’s biggest crude palm oil (CPO) producer, reported an output of 33.5 million tonnes in 2014. The figure is projected to increase to 40 million tonnes in 2020. Malaysia produces 19.7 million tonnes of CPO last year. Analysts said rising CPO production worldwide is putting the lid of prices despite growing global demand for edible oil. CPO futures contract prices on Bursa Derivatives, the global benchmark for the product, had fallen 18% over the past one year to settle at RM2,170 a tonne yesterday. Like its plantation peers, shares in CBIP had been hit by the falling prices of CPO. Lim, however, is optimistic that demand for the Modipalm mills will anchor the group’s performance in the coming years. “We are targeting to increase our local market share from 15% to 25% in the near term,’’ he says. Growth, he says, would come from commissioning of new plants as well as conversion jobs at older mills. Indonesia will be another key market as expanding plantation land fuels demand for new mills. http://www.thestar.com.my/Business/Business-News/2015/04/25/Every-drop-counts/?style=biz

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