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Keep Holding this stock at lease worth RM1.3 in January 2021 (based on PE 15 : RM1.31, PE 20 : RM 1.74, PE 25: RM2.18, PE30 : RM2.62 ). Since the cpo price keep moving up, previous quarter (Q3) average cpo selling price around RM2,800 only. Forecasting Q4 result's average CPO selling price will be around RM3,100-RM3,200 with the condition of December and January FCPO range around RM3,200 to RM3,500 as well as monthly cpo production must be maintained.
INNO production fall form 23k to 17k. It look bad right, but overall plantation company production is going down (started in Oct) so that the CPO price today stand on RM3,600. Demand still there but supply decrease, Price increase! In my view, I still keep holding it and look forward to another few month production report. If INNO production become lower and lower but another plantation company's production recover back then I will sell.
Palm oil rise mainly due to low production in OCT SEP DEC 2020 and of cause it will benefit INNO because they can sell higher price for their CPO production. But the problem is the production is keep going down, even though the CPO rise, they can't earn much but don't expect a huge net profit on next QR just able to rise a bit or remain the same as previous quarter.
