RE: Low market cap, high revenue18 Jan 2025 07:10
Is there a restricted supply or is DKL simply not prepared pay the price that Sifca/Sania does to get the FFB from Palmci for fear of upsetting its small 'tied' smallholders. Palmci is by far the biggest producer, around 300,000mt cpo and has some 10 mills in the south of the country. and the three companies all have linked shareholdings and behind them are some international groups with very deep pockets ( Kuok, Archer Daniels, Mitsubishi and Tamasek).
So perhaps the availability of ffb to DKL is somewhat restricted especially if the total supply is lower than usual and buying in more means paying higher local prices than they can justify.
Nice to see the late 1m purchase at 1.30