IJM Plantations

IJM Plantation reported its earnings and I thought it was impressive.

Quarterly earnings grew some 40% on a q-q and it was up a whopping 137% on a y-y basis.

   IJM Plantations Bhd (2216.KU) - Malaysia
   1st quarter ended June 30:
   Figures are in Ringgit (MYR).

                                 2007               2006
Revenue                 MYR92,413,000      MYR56,085,000
Pretax Profit              17,227,000          7,593,000
Net Profit                 12,488,000          5,249,000
Earnings Per Share           2.21 Sen           1.02 Sen
Dividend                      Omitted            Omitted 


I was just reading OSK Research report on IJM Plantation. 

The first paragraph caught my attention.

• Below expectation. IJMP’s annualised 1QFY08 earnings of RM12.6m was 58.8% below our full year forecast of RM121.2m and 54.3% consensus estimate. We are nevertheless expecting strong numbers in the subsequent 3 quarters to make up the shortfall. We are happy with the strong improvement in IJMP’s 1Q earnings, which jumped by 40.3% q-o-q and up by 137.5% from the same quarter last year on sharply higher CPO prices coupled with production growth.

This very statement caught my attention. IJMP’s annualised 1QFY08 earnings of RM12.6m was 58.8% below our full year forecast of RM121.2m and 54.3% consensus estimate.

OSK earnings forecast for IJMP's this fiscal year is a whopping 121 million!

Last fiscal year IJMP only managed a net earnings of 43.9 million.

Don't you think that this earnings forecast is simply too optmistic? And more so, considering that IJMP only managed a very impressive earnings of 12 million for its first quarter of its fiscal year 2008.