Dekel Agri-vision Share Discussion Threads

[2magpies] 13/12/2023 17:31

rivaldo

How on earth can WHI 'retain' their 'fair value at 9.5p', when the market values it at 2p?

Ought not WHI be piling their discretionary clients into this?

Does their valuation really pass the credibility test?

[rivaldo] 12/12/2023 09:38

WH Ireland's update note out today is unsurprisingly rather positive given the November update.

They note that DKL are "well on track to exceed our production estimates for the full year".

The CPO division alone is forecast to achieve around €6.0m of EBITDA this year, before cashew division initial costs, against the £11.5m m/cap.

They summarise:

"November production update: Another record month sets up strong end to FY2023

Yesterday’s production update from DKL illustrates another exceptional month for the group this year, with November’s crude palm oil (“CPO”) production up over 150% YoY – a record performance – putting the group well on track to exceed our production estimates for the full year. Strong CPO production in the month was a result of both above-average availability of fresh fruit bunches (“FFBs”) from local producers and excellent extraction rates achieved at DKL’s mill (21.7%), resulting in production of 3,875 tonnes for the month, a 152.4% increase on FY2022. While we note that CPO pricing has decreased from the near-record levels seen last year, down from €1,042 to €778 / tonne, prices remain supportive of healthy gross margins at these levels and only marginally below our long-term target of
€850/tonne.

Looking ahead, we anticipate positive developments for the group as it continues to ramp up production at its cashew project going into FY2024E and await further
updates in Q1 2024. With a strong performance from the palm oil project expected this year (anticipated ca. €6.0m of EBITDA at a divisional level in FY2023) and the cashew project expected to swing to a positive cash contribution next year, we view DKL as well placed ahead of its full year update in January and retain our current fair value target of 9.5p."

"Forecasts / Valuation

Yesterday’s update underpins expectations for a strong performance from the palm oil project this year and we leave our FY2023 forecasts unchanged this morning. With the palm oil business continuing to perform strongly and significant upside in the cashew project as production increases, we retain our fair value at 9.5p."

[royalalbert] 11/12/2023 10:06

Will be reported in January update. Three monthly intervals as stated.

[farrugia] 11/12/2023 09:09

what about their cashew operation?

[rugs3] 11/12/2023 08:59

Agreed. income close to E 3.4m compared to E 1.8m last November. Augurs well for the final years numbers.

[royalalbert] 11/12/2023 08:07

Nothing wrong with those results.

[2vdm] 11/12/2023 07:39

Agreed Rivaldo. I'm tempted to add,but am already above the % I allow in any one stock. Hopefully this will continue into the high season and we'll get a favourable report on cashew production as well

[rivaldo] 11/12/2023 07:35

Terrific November production update.

Sales and FFBs processed are both hugely up on last year. Extraction rates are back up. Prices achieved are stable at high historic levels and margins are good.

The CPO results for the year were already going to be good - these should further enhance those numbers:

[royalalbert] 08/12/2023 07:38

CPO production news Monday, hopefully should be good if bad they would have probably released today.

[harry the haddock] 27/11/2023 21:36

another disappointing tweet from DKL as we head ever further from that 9p target price

[2vdm] 27/11/2023 08:01

Bodes well Riv.

[rivaldo] 23/11/2023 14:05

The CPO price is now up to $985, the highest since September 1st.

[rivaldo] 17/11/2023 11:02

Agreed, and potentially much more with a reasonable CPO season.

Meanwhile the CPO price has continued to steam ahead and was at $975 as of Wednesday - up $100 since October 31st.

[royalalbert] 16/11/2023 15:17

Riv if the cashews are sorted PBT should be more than 1.5m euros next year in my view.

[2magpies] 16/11/2023 12:11

harry

Indeed.

No one believes WHI, it would seem.

Or else they would be piling in at sub 2p, surely?

By now DKL should have been making profit, to such an extent, that even dividend payments would have been possible.

Could be, imo, a combination of incompetence, ignorance, complacency ...... or, well...just add your own word.........

Bottom line is the share price has crashed.

[harry the haddock] 16/11/2023 11:35

can't help but agree with you Magpies.

And Ireland have been touting their 9p target price for years now, and we are further away than ever. Does nobody hold the Board to account for their underperformance?

[royalalbert] 16/11/2023 11:35

2mag I don't fall in love with shares, sort the cashews this is a bargain even you would agree with that surely.

[2magpies] 16/11/2023 11:30

read the previous posts, re previous RNSs.

DKL has repeatedly blamed this or that delay/hitch/non-delivery/prices high/prices low/bumper crop/bad harvest

But, they always say it's going to get better .. but always tomorrow.

Just look at the share price

Market has stopped believing them it would seem.

Best not to 'fall in love' with a stock, eh!

[royalalbert] 16/11/2023 11:17

"Annddddddd, there you go: equipment underperforms.."

No agenda ??????

[2magpies] 16/11/2023 11:07

bertie

no agenda

chart speaks for itself

[royalalbert] 16/11/2023 11:01

2mag that was in the RNS so no bearing today, you know that but it suits your agenda.

[cousinit] 16/11/2023 10:35

Same old, yes, but also old news

[2magpies] 16/11/2023 10:16

Annddddddd, there you go: equipment underperforms..



'twas ever thus.

So, now they expect the situation will 'improve'.

As I said before, in the furure... always.

[cousinit] 16/11/2023 10:13

Miton have a liquidation pot to work through from the MINI tender, so may be them