12-01-2024, 07:21 AM
SHChan is a Bursa Malaysia plantation company. But when you look at the profit contribution over the past 5 years, the majority came from non-palm oil activities such as from the energy and facilities management segment.
From a fundamental perspective, over the past decade, half the time it lost money. At when it was profitable (excluding 2021 with a one-off recognition of negative goodwill) its ROE was less than 6%.
It is ironic when you have non palm oil companies such as MKH and KFIMA diversifying into plantations while SHChan seemed to be growing its non-palm oil segment.
When benchmarking performance, comparing it with the Bursa plantation sector may not make sense. I guess until it articulate a clear business direction, there are better plantation companies to look at.
From a fundamental perspective, over the past decade, half the time it lost money. At when it was profitable (excluding 2021 with a one-off recognition of negative goodwill) its ROE was less than 6%.
It is ironic when you have non palm oil companies such as MKH and KFIMA diversifying into plantations while SHChan seemed to be growing its non-palm oil segment.
When benchmarking performance, comparing it with the Bursa plantation sector may not make sense. I guess until it articulate a clear business direction, there are better plantation companies to look at.