Whistleblowing
Scholarship
Call Us
+60 6 – 282 3700
Our Location
6th Floor, No. 61, Jalan Melaka Raya 8,
Taman Melaka Raya, 75000 Melaka, Malaysia.
Whistleblowing
Scholarship
Call Us
+60 6 – 282 3700
Our Location
6th Floor, No. 61, Jalan Melaka Raya 8,
Taman Melaka Raya, 75000 Melaka, Malaysia.
September 2023
UMCCA’s 1QFY24 results disappointed as better harvest was more than offset by higher production cost and softer CPO prices realised. The same reasons contributed to a 74% YoY plunge in 1QFY24 core net profit. We cut our FY24-25F net profit by 15% and 18%, respectively, but maintain our asset-based TP of RM5.00 and MARKET PERFORM call.
September 2023
United Malacca Berhad’s (UMCCA) 1QFY24 results came in below expectations. After stripping out exceptional items, the core net profit decreased by 79.9% YoY to RM5.1mn on the back of an 18.8% fall in revenue. The weaker results were mainly due to lower palm oil prices and higher production costs. Higher FFB production was insufficient to offset losses in palm oil prices.
June 2023
United Malacca Berhad’s (UMCCA) 4QFY23 results came in below expectations. After stripping out exceptional items, the group recorded a core net loss of RM7.4mn in 4QFY23, compared to a core profit of RM34.2mn in the previous year. The weaker results were mainly due to lower palm oil prices and higher production costs.
June 2022
United Malacca Berhad (UMCCA) 4QFY22 results came in below ours, but within consensus’ full year estimate. The deviation was mainly due to higher operating costs. After stripping out all exceptional items, 4QFY22 core net profit increased by more than 100% YoY to RM26.6mn on the back of 38.6% surge in revenue. The better results were mainly attributable to higher palm oil prices.
December 2021
United Malacca (UMB) reported one its strongest quarterly earnings in recent history. 2QFY22 CNP of RM30.8m was significantly above ours and market expectation thanks to a fortuitous combination of record CPO prices when FFB production was seasonally high. CPO prices have since eased but labour shortages remain and inventory is improving only gradually. We expect only slightly weaker QoQ earnings in 3Q but staying elevated YoY. Raising FY22- 23E CNP by 43%-23% on CPO prices staying buoyant longer than earlier anticipated and raising TP from RM5.20 to RM5.40 at FY22 P/BV of 0.8x but maintain MP as relative valuations are already at or above peers. ESG score is 55%.
Sept 2019
1Q20 CNL of RM18.3m is deemed within our, but below consensus, expectation. No dividend was declared, as expected. No changes to FY20-21 estimates as we expect earnings to improve in subsequent quarter on higher CPO prices (QTD 2Q20: +9%) and higher FFB output leading up to peak production season. Maintain MARKET PERFORM with unchanged Target Price of RM5.00.
