PETALING JAYA: Kim Loong Resources Bhd hopes to reward shareholders more in the second quarter, following its 23 sen dividend pay-out in its first quarter ended April 30, 2008.
“We paid 18 sen dividend for the whole of FY08 (ended Jan 31), and for the first quarter of FY09, we already paid out a higher dividend of 23 sen,” its managing director Gooi Seong Heen told reporters after its AGM here yesterday.
The company’s dividend yield is 8%, and its net cash position is between RM70 million and RM80 million.
On another matter, its chairman Gooi Seong Lim said the company was looking to carve a niche in the food supplements market by being a provider of quality Vitamin E capsule.
“We plan to sell the Vitamin E soft gels in bulks for export. We will export 80% of our products and are looking at the United States and Japan,” said Seong Lim.
Towards this end, the company has commissioned a RM10 million plant to produce tocotrienal concentrate (a type of Vitamin E) in January this year. The plant in Kota Tinggi is expected to start production by next year. It has an annual capacity of three tonnes.
He said, however, the company had yet to venture into the production of food such as margarine.
Seong Lim also said that Kim Loong was positive and comfortable despite the recent decline in crude palm oil futures below RM3,000 a tonne.
“It is a temporary phenomenon. Demand would pick up during the festive seasons in a few monthsember. Furthermore, vegetable oil supply is tight and the soybean stock is uncertain,” he said, adding that the company has locked in 25% of its total production until December at the price of RM3,400 per tonne.
Kim Loong, which has a landbank of 12,000 hectares, is looking at acquiring plantations and land in east Malaysia. It is currently building its third mill in Sabah.
Saying that the company is not ready to go into Indonesia, Seong Lim said the company would like to have joint ventures with the local people in Sabah.
“They own a lot of undeveloped land and some of the land is near our existing development. We would try to explore and work with the locals. They (the locals) actually have no capital to develop. They need companies like us to come in with working capital to help them to develop the land on a JV basis,” he said.
Kim Loong is also looking at developing plantations in Sarawak.
On the issue of windfall tax, Seong Heen said Malaysian Palm Oil Association (MPOA) was appealing to the government on the matter.
More Recent Palm Oil News 
- Palm Oil Ends Up Higher On Lower Output, Soyoil
- CPO Ends Up On Short Covering; Rising Stocks Cap Gains
- Crude Palm Oil Ends Off Lows On Bargain-Hunting
- Crude Palm Oil Ends Off Highs On Likely Fall In Exports
- Malaysia August Palm Oil Exports Likely Down 14%-15% On Month
- Crude Palm Oil Ends Up On Soyoil, Bullish Forecast
- Analyst Mistry: Palm Oil Prices “Must Rise” To Ration Demand
- Crude Palm Oil Rises 1.8% On Aggressive Short Covering, Soyoil
- Crude Palm Oil Ends 1% Lower On Weak Aug 1-25 Export Data
- CPO Ends Down 2% On Likely Fall In Exports; May Fall More
- Crude Palm Oil Ends Down; Falling Demand, Rising Output
- Crude Palm Oil Ends Lower;Likely Higher Exports Cap Fall
- CPO Falls On Soyoil; Bad Weather In Indonesia May Support
- Crude Palm Oil Ends Down; Stocks To Rise As Exports Fall
- Crude Palm Oil Ends Lower; Price Correction Seen Timely
PRO Palm Oil Live Market News
- China Dalian Commodity Exchange Grain Stocks, Sep 07
- China Soybean Futures Marginally Up, Lose Momentum On Supply
- China Dalian Grain Futures Closing Prices, Volume
- Malaysian Cash Market Prices For Palm Oil – Sep 7
- India Soybean Futures Steady; May Gain On Data
- BMD Crude Palm Oil (CPO) Futures Unchanged Midday; Upside Limited
- BMD Crude Palm Oil (CPO) Futures Little Changed In Thin Trade
- India Soy Futures Likely Steady; May Fall Later
- CPO Futures May Get Only Limited Soyoil Support
- BMD Crude Palm Oil (CPO) Futures To Open MYR15-MYR25 Lower
- Southeast Asia Palm Oil Weather – Sep 6
- Southeast Asia Palm Oil Weather – Sep 6
- Southeast Asia Palm Oil Weather – Sep 6
- Southeast Asia Palm Oil Weather – Sep 6
- European Veg Oil PM Palm Oil & Lauric Oil Prices – Sep 6
