Dekel Agri-vision Share Discussion Threads

[nurdin] 14/6/2017 08:25

Puzzled by this continuous decline..

[rivaldo] 07/6/2017 15:36

The chart is showing a nice long-term uptrend.....

Good to see a tick up now.

[pugugly] 07/6/2017 15:15

Chart is misleading Rember there was a 10 for 1 Share Consolidation last year



so share price is only 1.35p pre consolidation - The price of the last placing was 1.325p so virtaully no change -

[greenroom78] 07/6/2017 11:03

Shame no one is biting with these broker targets, even the SCSW mention made little impact. Is there a big background seller or is it purely a lack of interest in Palm Oil?

Maybe get the election out of the way and (assuming a positive outcome) things will wake up a little - especially with a decent Q2 statement.

[rivaldo] 07/6/2017 09:13

Here's Beaufort Securities' view - they say Buy with a 23p target price. Note the P/E's of just 6.8 falling to 5 for this this year and next year:

"Our view:

DekelOil delivered strong results for the FY2016 with record production and over ten-fold increase in post-tax profit, despite the fall in average CPO prices and FFB yield. Looking ahead, in FY2017, the Group said market prices for both CPO and PKO has improved in the H1, therefore is on track to deliver further increases in sales. This year will also expect materially lower financing costs as the Group will see the first full year benefit of the revised debt term. Altogether, this enables the Group to commence maiden dividend in FY2017 which the management said it expect to pay a total of £500,000, implying c.0.17p per share.

For the medium-term, as the company-owned estates reaching maturity, as well as improvement in farming practices of the smallholders supported by the World Bank scheme, these are expected to result in increased volumes of feedstock. Together with this, the Group’s investment in improved extraction rate and increased CPO storage capacity (to 8,000 tonnes) will further support the future sales growth. DekelOil has also invested in back-up facilities during the year which is now in place to minimise the operational risk.

Beaufort believe DekelOil’s current share price yet to truly appreciate the potential upsides from ramp up of its CPO production from now wholly-owned Ayenouan, where c.30% of the operational capacity at the CPO extraction mill is yet utilised (maximum capacity 70,000 tonnes per annum).

Moreover, the management confirmed on 10 May 2017 that it is currently in discussion with Norpalm Ghana Limited (subsidiary of Norpalm AS) and certain Norpalm AS shareholders in relation to the potential acquisition of all or the majority of the shares in Norpalm by DekelOil to build out its operations in neighbouring Ghana. Norpalm is an owner and operator of c.4,000 hectares of mature palm plantations and operates a 30 tn/hr mill which also purchases FFB from local producers. Norpalm sells 15,000 tonnes of crude palm oil sold into the domestic Ghanaian market, and also operates a PKO press which produces c.2,000 tn of PKO in the Ghanaian market. Such discussions are still ongoing and therefore there can be no guarantee that it will proceed. The Board intend, however, that it would be financed through a combination of DekelOil’s existing cash resources, new equity partners at project level and debt financing. The potential acquisition, if it were to proceed, would not constitute a Reverse Takeover, and so publication of a prospectus is not required. The Group will make further announcements in due course.

Overall, given the Group has strengthened balance sheet and revenue profile while set to transform itself into a list of dividend paying company with a progressive policy in place, upsides for the shareholders are increasing on this obviously undervalued investment. The Shares are currently valued at FY2017E and FY2018E P/E multiple of 6.8x and 5.0x, along with dividend yield of 1.3% for both, respectively. Beaufort retains its Buy rating on the Shares with target price of 23p."

[catsick] 07/6/2017 03:32

Bit odd that the year end results caused a sell off when we already had q1 numbers which are a big improvement on q1 of 2016 and probably had almost as much net profit as the whole of 2016

[chadders] 06/6/2017 21:24

It will get there in my view. The results will have significantly derisked the proposition and now I reckon it just needs the Norpalm negotiations to be resolved in a satisfactory manner and we will be on our way. Jusy my view and no advice intended.

[113mike] 06/6/2017 12:27

25p? ....be nice just to get to 20p!

[shauney2] 06/6/2017 12:20

From proactiveinvestors

What the house brokers says about DekelOil

Joint house broker Optiva Securities said that growing production and profitability in 2016 in a low pricing environment demonstrated “real management credibility”.

The broker raised its target price for DekelOil from 32p to 34p; the shares currently trade at 12.8p, up 18% year-to-date but down 0.95p today.

“The introduction of the 60t/day kernel crushing plant … has added significant value to revenue streams and has delivered a payback period of less than 12 months. We also take comfort that the World Bank has commenced an initiative which subsidises the cost to buy DKL’s products to boost further palm oil plantations in the region, thereby enhancing DKL’s underlying revenues,” the broker said.

Optiva is expecting significant growth momentum in 2017, forecasting 45,590 tonnes of CPO production, with the kernel crushing plant contributing a further 7,500 tonnes of palm kernel oil and palm kernel cake.

It has pencilled in a CPO price of €690 per tonne of CPO and €850 per tonne of palm kernel oil.

These assumption lead to a forecast of substantially increased revenues of €31mln and more than doubled EBITDA of €10.6mln.

DekelOil’s nominated adviser Cantor Fitzgerald said the results showed the significant progress made in moving the mill towards full production while expanding its capabilities.

DekelOil said the mill is currently working at about 70% of its capacity.

“This year has also seen a significant financial simplification of the business leaving shareholders more clearly exposed to the growth potential of the company in our view. The margin impact of lower volumes in Q4 now looks like a genuine aberration and we remain confident in the underlying picture going forward,” Cantor said, as it reiterated its ‘buy’ recommendation and cut its target price to 25p from 29p.

“We have adjusted our figures for a lower CPO price but with a stronger balance sheet position our valuation is only modestly affected,” the broker said, explaining the cut in target price.

[greenroom78] 06/6/2017 10:20

I've added a few at 12.75p (averaged down).

[empirestate] 06/6/2017 09:26

am certainly holding here, Q2 production numbers 1 month away, not sure about impact of potential Norpalm purchase though ie definition of project equity and possible consequence, if any

[cheshire man] 06/6/2017 09:19

Another one happy to hold here the future looks pretty bright to me :-)

[rivaldo] 06/6/2017 08:42

Agreed, I'm happy to hold too. I think headline results were indeed down on expectations.

But the outlook for this year is excellent, as already evidenced by the Q1 trading update. The maiden dividend is also evidence of confidence going forward. There's news flow to come on Guitry and hopefully the Ghana acquisition, and expansion in Ivory Coast continues apace.

Cantor say Buy and have reduced their target price to 25p - this is still more than 100% up on the current share price.

The company seems to be well run, is well financed and is expanding sensibly. Except for exceptional circumstances like weather, politics etc I can see DKL continuing to thrive and eventually being acquired.

[poleaxe] 06/6/2017 08:37

Typical AIM company, management giving themselves a pay rise, no details about the dividend other than what we were told before. Why the sudden drop, is there something we have not been told.

[greenroom78] 06/6/2017 08:27

Yes, I'm holding (which is rare for me) and will add on further weakness if I can.

[nurdin] 06/6/2017 08:25

I think they fell well short on PAT against expectations but for good reasons.The outlook for this year is excellent imo

[greenroom78] 06/6/2017 08:17

Disappointing market reaction but they read ok to me? What was the market expectations?

[113mike] 06/6/2017 07:58

Results out!

[113mike] 05/6/2017 10:03

Grim isn't it?

[empirestate] 05/6/2017 10:03

bloody hell, becoming a serial disappointment.

[nurdin] 05/6/2017 09:46

Price still dropping..very odd.All the recent announcements have been quite positive imo so expect them to at least meet

[mach100] 31/5/2017 22:30

Two large sales empire account for why we are pegged at this level. It is surprising that more damage wasn't done to the share price and they may yet be a tick down in the morning.

[empirestate] 31/5/2017 12:53

good to see the buy side interest continuing today, it's amazing how the share price has still not started improving, which is a real disappointment.

[malcolmmm] 30/5/2017 16:55

bought some earlier ahead of results but not showing up as a buy or sell 67911 shares bought
I see the broker target is 29p . Palm oil unlike rapeseed , linseed etc doesn't neeed replanting for 25years,world prices for palm are up 35% and zero vat