Investment Analysis

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Faculty of Business and Management

BBAP 4103

INVESTMENT ANALYSIS

SEMESTER MAY 2009

TABLE OF CONTENTS Page

QUESTION A

1. Plantation Industry Analysis 1. Plantation History 4 1. Industry Life Cycle 5 1. Competitive Structure in Industry 5

2. Company Analysis 2. BLD Plantation Berhad 5 2. Company Background 6 2. Financial Statements 6 2. Value of Company 7 2. Reason of Choice 8

2. Sarawak Oil Palm Berhad 9 2. Company Background 9 2. Financial Statements 10 2. Value of Company 11 2. Reason of Choice 12

2. Tradewinds Plantation Berhad 13 2. Company Background 13 2. Financial Statements 13 2. Value of Company 14 2. Reason of Choice 15

QUESTION B

1. Weighted Value of Investment 16 1. Expected Return on Portfolio 16 1. Portfolio Beta 17 1. Comment on Portfolio Beta 18
QUESTION C

1. Rationalization of Investment 19

QUESTION D

1. Risk and Return Concept 20

Appendices

Appendix 1: BLD Plantation Berhad Financial Statements

Appendix 2: Sarawak Oil Palm Berhad Financial Statements

Appendix 3: Tradewinds Plantation Berhad Financial Statements

References

QUESTION A

1. Plantation Industry Analysis

1. Plantation History

The oil palm tree originates from West Africa where it grows in the wild and later was developed into an agricultural crop. It was introduced to Malaysia, then Malaya, by the British in early 1870’s as a decorative plant. In 1917, the first commercial planting took place in Tennamaran Estate in Selangor, laying the foundations for the vast oil palm plantations and the palm oil industry in Malaysia.