Priceworth International Bhd

PWorth surged at the opening bell today. It opened with a gap at 19 sens and closed the day at 20 sens with high volume.

So, that is what I have hoped for, it has formed 5 mini up waves, thanks to a report published on Saturday by TheStar. The possibility is high that the 16 sens level is the bottom and PWorth is in a new up-trend cycle.

Click 'Priceworth's Turnaround Plan' for the report mentioned.

From the report, It is interesting to note the following points mentioned by the Executive Director of PWorth, Richard Koo.

1) PWorth is expected to return to the black for the current quarter ending 30th June.

2) With the acquisition of Beta Bumi, which holds a 20,000ha timber concession area in Sabah, Priceworth now has a total of 28,000ha where it will implement a sustainable forest management programme for 50 years.

3) Forest replanting programme was started in 2009 when PWorth has replanted 1,000 ha. To date the company has replanted 4,200 ha.  The remaining 28,000 ha will be replanted within the next 3 to 4 years. They can plant 625 tree in one hectare.

4)With an eight-year harvesting cycle, Koo says Priceworth expects to obtain around 100,000 cu m of timber per month from 2017 onwards. He expects the mills to operate at 'at least' 80% capacity. Currently the mills are operating at 30% capacity.


From another 'Report' by The Sun Daily on 26th May, 2014, the fast growing eucalyptus trees were the type of trees planted by PWorth.

It was reported in 'Tree Farmer Magazine' that 'Eucalyptus tree can reach a harvestable size (up to 70 ft in height and 7 inches in DBH (Diameter at Brest Height) in as little as 6 to 8 years.'

By 2017, that is 8 years from 2009. the first 1,000 ha planted in 2009 will be ready for harvest. The maximum possible volume of a 7 inches diameter x 70 ft tree is about 0.5 cu.m. 1,000 ha with 625 tree an hectare will yield 312,500 cu.m a year or 26,000 cu.m a month.

If the balance 28,000 ha can be planted within next 4 years (by year 2018), that is to say within 9 years from 2009 to 2018, a total area of 32,200 ha would have been planted. For 8-year cycle of harvesting, every year the company can harvest 4,000 ha. And with 26,000 cu.m. a month per 1,000 ha. 4,000 ha. can yield 100,000 cu.m. of log a month. That will be by the year 2023, the earliest.



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