Supply chain disruptions during pandemic has resulted in surging commodity prices (eg. palm oil and other agricultural products, crude oil, metals, etc). The situation becomes worst with recent Russia-Ukraine war, global inflations would be higher in near term, pushing commodity market to even higher optimism.
Instead of worrying about uncertain markets, a smart investor may consider strong commodity giant stocks with protection by rising commodity sector business, a natural way to hedge against high inflation with interest rate hike.
In this article, you will learn from Dr Tee on 76 Singapore Commodity and Malaysia Plantation Stocks to profit in current stock market, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally and high inflations. Bonus for readers who could read every word of the entire article, learning unique strategy to position in 6 Singapore and Malaysia commodity / plantation (mainly palm oil) giant stocks for both passive incomes (dividend) and capital gains with potential share price appreciation. Both Ein55 Optimism levels and intrinsic values will be shared for each giant stock:
3 Singapore Giant Commodity Stocks:
– Wilmar International (SGX: F34), Golden Agri Resources (SGX: E5H), First Resources (SGX: EB5)
3 Malaysia Giant Plantation Stocks:
– United Plantations (Bursa: 2089), Genting Plantations (Bursa: 2291), Kim Loong Resources (Bursa: 5027)
These stocks have plantations and processing factories mainly on palm oil and some also on other agricultural products (eg. sugar, wheat, seeds, etc). Singapore and Malaysia has the most number of palm oil giant stocks in the world with plantations mainly based in Malaysia and Indonesia.
The best time to invest in 35 Singapore commodity stocks and 41 Malaysia plantation stocks (total 76 stocks) is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Commodity stock investing is not based on stock strategy (Buy Low Sell High) alone, may be integrated with dividend investing, growth investing, swing trading, momentum trading, cyclic investing, defensive investing and other Ein55 strategies.
More importantly, commodity stock investing has to be integrated with commodity market itself, eg, riding the uptrend of commodity prices. Since palm oil prices are at very high Ein55 Optimism over 75% (very bullish), most palm oil giant stocks are more suitable for short term to medium term trading, while a few could still be considered for longer term investing. So, alignment with short term prices by Technical Analysis is helpful (eg. ensure higher high and high low in share prices).
There are 76 Singapore commodity stocks and Malaysia plantation stocks (not all are giant stocks with Dr Tee criteria), based on the last price traded (30 Mar 2022), sorted by 3 key Fundamental Criteria:
1) ROE (a criteria for growth stocks, eg. ROE > 5%),
2) Dividend Yield, DY (a criteria for dividend stocks, eg. DY > 3%),
3) Price-to-Book (PB) ratio, Price/NAV (a criteria for undervalue stocks, eg. PB < 1).
From the table sorted below, 50% (38/76 stocks) are undervalue (Price to Book ratio, PB < 1), mainly due to COVID-19 stock crisis, affecting commodity business with bearish share prices a few years ago but trend is reversed currently with bullish commodity market. There are 64% (49/76 stocks) have growing businesses (over 5% ROE, Return on Equity) with rising commodity prices while only 18% (14/76 stocks) were making losses during pandemic in Year 2021. There are nearly 50% (37/76 stocks) were paying dividend but only 20 stocks (26%) having dividend yield over 3%, potential for dividend investing (higher dividend yield may not be better).
| No | 76 SG+MY Commodity Stocks | ROE (%) | PB | DY (%) |
| 1 | Asia Enterprises (SGX: A55) | 3.9 | 0.6 | 5.1 |
| 2 | AsiaPhos (SGX: 5WV) | -8332.5 | 11.3 | – |
| 3 | Bumitama Agri (SGX: P8Z) | 16.7 | 1.4 | 3.2 |
| 4 | China Mining (SGX: BHD) | 27.3 | 0.5 | – |
| 5 | CNMC Goldmine (SGX: 5TP) | 4.2 | 1.7 | 0.9 |
| 6 | Cosmo Steel (SGX: B9S) | 2.9 | 0.6 | 3.2 |
| 7 | Don Agro (SGX: GRQ) | 15.3 | 0.6 | 3.2 |
| 8 | First Resources (SGX: EB5) | 13.5 | 2.0 | 3.1 |
| 9 | Fortress Minerals (SGX: OAJ) | 37.7 | 3.0 | 2.2 |
| 10 | Geo Energy Resources (SGX: RE4) | 51.2 | 1.4 | 19.0 |
| 11 | Global Palm Resources (SGX: BLW) | 9.3 | 0.7 | 7.9 |
| 12 | Golden Agri-Resources (SGX: E5H) | 10.2 | 0.6 | 5.3 |
| 13 | Golden Energy (SGX: AUE) | 23.5 | 1.8 | – |
| 14 | Halcyon Agri (SGX: 5VJ) | 0.6 | 0.6 | – |
| 15 | HG Metal (SGX: BTG) | 10.9 | 0.5 | 9.7 |
| 16 | Indofood Agri (SGX: 5JS) | 6.5 | 0.5 | 2.0 |
| 17 | Intraco (SGX: I06) | -1.6 | 0.7 | – |
| 18 | Jawala (SGX: 1J7) | 14.2 | 1.1 | 2.7 |
| 19 | Kencana Agri (SGX: BNE) | 54.6 | 1.5 | – |
| 20 | Mewah Intl (SGX: MV4) | 11.8 | 0.7 | 2.5 |
| 21 | MSC (SGX: NPW) | 20.3 | 3.1 | 1.6 |
| 22 | Nam Lee Metal (SGX: G0I) | 9.9 | 0.6 | 4.2 |
| 23 | NSL (SGX: N02) | 1.0 | 0.7 | 5.6 |
| 24 | Resources Global (SGX: QSD) | 40.0 | 1.0 | 2.5 |
| 25 | Samko Timber (SGX: E6R) | -23.9 | 12.2 | – |
| 26 | Shen Yao (SGX: A78) | -42.9 | 1.4 | – |
| 27 | Soon Lian (SGX: 5MD) | 17.0 | 0.5 | 1.7 |
| 28 | Southern Alliance (SGX: QNS) | 40.4 | 2.9 | 2.3 |
| 29 | Sri Trang Agro (SGX: NC2) | 34.0 | 0.9 | 15.8 |
| 30 | Union Gas (SGX: 1F2) | 26.6 | 4.3 | 2.4 |
| 31 | Union Steel (SGX: BLA) | 12.4 | 0.4 | 6.0 |
| 32 | USP Group (SGX: BRS) | -5.7 | 0.2 | – |
| 33 | VCPlus (SGX: 43E) | -44.2 | 15.0 | – |
| 34 | Wilmar International (SGX: F34) | 9.5 | 1.1 | 3.3 |
| 35 | Wilton Resources (SGX: 5F7) | 6.2 | 1.9 | – |
| 36 | AASIA (Bursa: 7054) | -3.4 | 0.4 | – |
| 37 | BKAWAN (Bursa: 1899) | 18.1 | 1.6 | 4.2 |
| 38 | BLDPLNT (Bursa: 5069) | 10.3 | 1.3 | 0.3 |
| 39 | BPLANT (Bursa: 5254) | 8.9 | 0.8 | – |
| 40 | CEPAT (Bursa: 8982) | 13.4 | 0.8 | – |
| 41 | CHINTEK (Bursa: 1929) | 9.3 | 1.0 | 3.8 |
| 42 | DUTALND (Bursa: 3948) | 1.1 | 0.2 | 2.9 |
| 43 | FAREAST (Bursa: 5029) | 13.1 | 1.7 | – |
| 44 | FGV (Bursa: 5222) | 21.5 | 1.3 | – |
| 45 | Genting Plantations (GENP) (Bursa: 2291) | 8.4 | 1.5 | – |
| 46 | GLBHD (Bursa: 7382) | -4.9 | 0.3 | – |
| 47 | GOPENG (Bursa: 2135) | -0.9 | 0.6 | – |
| 48 | HARNLEN (Bursa: 7501) | -7.1 | 0.6 | – |
| 49 | HSPLANT (Bursa: 5138) | 11.9 | 1.1 | 6.7 |
| 50 | INCKEN (Bursa: 2607) | -2.0 | 0.3 | – |
| 51 | INNO (Bursa: 6262) | 26.8 | 2.6 | – |
| 52 | IOICORP (Bursa: 1961) | 13.9 | 2.5 | 2.6 |
| 53 | JTIASA (Bursa: 4383) | 2.8 | 0.8 | – |
| 54 | Kim Loong Resources (KMLOONG) (Bursa: 5027) | 12.7 | 2.3 | 3.5 |
| 55 | KLK (Bursa: 2445) | 19.0 | 2.2 | 4.0 |
| 56 | KLUANG (Bursa: 2453) | 4.6 | 0.4 | 0.8 |
| 57 | MALPAC (Bursa: 4936) | 4.3 | 0.5 | – |
| 58 | MATANG (Bursa: 0189) | 1.8 | 0.8 | 2.2 |
| 59 | MHC (Bursa: 5026) | 14.7 | 0.8 | – |
| 60 | NPC (Bursa: 5047) | 2.1 | 0.4 | – |
| 61 | NSOP (Bursa: 2038) | 4.3 | 0.5 | – |
| 62 | PINEPAC (Bursa: 1902) | -5.0 | 0.3 | – |
| 63 | PLS (Bursa: 9695) | 5.1 | 1.4 | – |
| 64 | RSAWIT (Bursa: 5113) | -1.9 | 1.3 | – |
| 65 | RVIEW (Bursa: 2542) | 6.0 | 0.6 | – |
| 66 | SBAGAN (Bursa: 2569) | 7.2 | 0.3 | 2.2 |
| 67 | SHCHAN (Bursa: 4316) | 38.0 | 0.5 | – |
| 68 | SIMEPLT (Bursa: 5285) | 14.9 | 2.3 | – |
| 69 | SOP (Bursa: 5126) | 18.2 | 1.1 | – |
| 70 | SWKPLNT (Bursa: 5135) | 19.0 | 1.1 | – |
| 71 | TAANN (Bursa: 5012) | 17.8 | 1.4 | – |
| 72 | TDM (Bursa: 2054) | -4.4 | 0.7 | – |
| 73 | THPLANT (Bursa: 5112) | 10.8 | 1.2 | – |
| 74 | TSH (Bursa: 9059) | 10.3 | 1.4 | – |
| 75 | UMCCA (Bursa: 2593) | 1.0 | 0.8 | 1.8 |
| 76 | United Plantations (UTDPLT) (Bursa: 2089) | 19.4 | 2.3 | 6.3 |
However, not all the 76 Singapore Commodity and Malaysia Plantation stocks listed are giant stocks. A growing business in the past may not be sustainable during COVID-19 period and an undervalue stock may remain lagging in share prices for many years, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a low PB or low PE or high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies.
Let’s learn these 6 commodity and plantation giant stocks (mainly related to palm oil) in Singapore and Malaysia, understanding the business nature, investment clock and unique strategy.
1) Singapore Commodity Giant Stock – Wilmar International (SGX: F34)
Among the 6 giant stocks studied, Wilmar has the largest market cap (about 10 times more relative to others), also the 6th largest stock in 30 STI component stocks. A giant is not defined by the size, even small cap stock could be a giant stock based on Dr Tee criteria.
The IPO of Wilmar subsidiaries in China and India help Wilmar to grow its market value further. Major shareholder is PPB Group (Bursa: 4065), Perlis Plantations Berhad, controlled by Kuok Family (led by Robert Kuok, the richest person in Malaysia). This is additional bonus with such a strong sponsor.
Wilmar has stronger business, mainly supported by higher commodity prices (eg. palm oil and sugar, etc). However, due to too bullish palm oil prices, when high inflation is tamed in future, it may affect its cyclic stock prices. Therefore, currently Wilmar (as well as other 5 giant stocks studied) is more suitable for short to medium term trading until the commodity market falling down from high optimism one day (likely triggered by another Black Swan).
Wilmar is still at moderate low Ein55 Optimism (<50%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $6/share (about 30% potential upside in medium term). The stock is well balanced, suitable for growth investing (Buy & Hold), cyclic investing (Buy Low Sell High) or even dividend investing (about 3% dividend yield).
2) Singapore Commodity Giant Stock – Golden Agri Resources (SGX: E5H)
Golden Agri Resources is a very cyclic stock, share prices has been bearish over the past 10 years (2010-2020, suitable for shorting then), incurring big loss for long term investors. The business is also more cyclic in nature, currently having upside potential with rising palm oil prces.
Crisis (eg. lower share prices) is an opportunity only for a giant stock. Despite Golden Agri does not have very strong business, its foundation is good, able to recover in share prices after 10 years of “winter” for business and stock prices.
Golden Agri is still at moderate low Ein55 Optimism (about 30%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $0.60/share (about 2X potential upside but at the price of relatively higher risk). The stock is more suitable for cyclic investing (Buy Low Sell High), aligning with palm oil optimism until the bull market has ended.
3) Singapore Commodity Giant Stock – First Resources (SGX: EB5)
First Resources is relatively smaller stock but it is also a giant stock, more suitable for shorter term trading as Ein55 Optimism is at fair price (about 50%). The share price is recovering well from low in pandemic, aiming for short term trading.
The stock is more suitable for swing trading (Buy Low Sell High in weeks or months) or momentum trading (Buy High Sell Higher with price breakout), aligning with palm oil optimism until the bull market has ended. Alignment with short term prices by Technical Analysis is helpful (eg. ensure higher high and high low in share prices).
4) Malaysia Plantation Giant Stock – United Plantations (Bursa: 2089)
United Plantations is a rare giant stock suitable for long term investing (having over 100 years of history with Danish management for several generations in Malaysia). The parent company (UIE) is listed in Denmark, the close connection with Europe market also helps in its business positioning, especially with tighter Europe regulations for palm oil products.
United Plantations has relatively stronger and more defensive business than other peers in the same sector. Therefore, it is one of the few giant commodity stocks which may be considered for long term investing, in addition to short term trading, despite operating under a cyclic commodity market.
United Plantations is at low Ein55 Optimism (<25%) but recovering steadily from low in pandemic, aiming for Ein55 intrinsic value of over $20/share (about 40% potential upside). The stock is more suitable for mudium to long term investing (Buy Low Sell High), entry with consideration of short term trading is helpful to avoid price correction.
5) Malaysia Plantation Giant Stock – Genting Plantations (Bursa: 2291)
Genting Plantation is under Genting Berhad (Bursa: 3182), a giant group under severe crisis during pandemic (casino, cruise, hotel, plantations, etc). However, the strong foundation of parent company has helped to support subsidiaries (except for Genting Hong Kong with cruise business).
As a result, Genting Plantations is suitable for Crisis Investing to Buy Low Sell High, leveraging on very low prices with calculated risks. This is comparable with stock investing in Golden Agri, higher risk for higher gains (Genting Plantations is stronger than Golden Agri for relative business comparison).
Genting Plantations is still at low Ein55 Optimism (<25%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $17/share (about 2X potential upside but at the price of relatively higher risk). The stock is more suitable for cyclic investing (Buy Low Sell High), aligning with palm oil optimism until the bull market has ended.
6) Malaysia Plantation Giant Stock – Kim Loong Resources (Bursa: 5027)
Kim Loong Resources has strong business performance, comparable with United Plantations. It is smaller in size but a strong giant stock internally. However, due to relatively higher optimism than United Plantations, Kim Loong is more suitable for short trading or medium term investing.
Kim Loong Resources is at moderate high Ein55 Optimism (>50%, exceeding Ein55 intrinsic value). The share price is recovering well from low in pandemic, aiming for short term trading.
The stock is more suitable for swing trading (Buy Low Sell High in weeks or months) or momentum trading (Buy High Sell Higher with price breakout), aligning with palm oil optimism until the bull market has ended. Alignment with short term prices by Technical Analysis is helpful (eg. ensure higher high and high low in share prices).
===================================
There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.
Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.
Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:
Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).
Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Integrated Commercial Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.
There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com
View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:
Register Here (Dr Tee Free 4hr Stock Webinar): www.ein55.com
