|Last Price ||Avg Target Price || Upside/Downside ||Price Call |
|1.10 ||2.80 || +1.70 (154.55%) || |
|* Average Target Price, Price Call and Upside/Downside are derived from Price Targets in the past 6 months.|
|** Price Targets are adjusted for Bonus Issue, Shares Split & Shares Consolidation (where applicable).|
|Date ||Open Price ||Target Price ||Upside/Downside ||Price Call ||Source ||News |
| No Price Target available for this stock. |
Xinquan Unplanted oil palm-planted to mature need 7 years to make money.
cpo_ Actually with same amt of money can buy many listed CPO counters which are proven profitable.
cpo_ So it is proving Puncak management is poor.
Jay the land value don't skyrocket just like that. major capex are required. planted land carry much higher value is after taking into account planting cost, maintenance cost (fertilisers, workers etc.) and your interest/opportunity cost over the years.
cpo_ Agree. Otherwise present owner no need to sell if land price can skyrocket so easy.
Posted by Jay > Oct 18, 2016 03:29 PM | Report Abuse
the land value don't skyrocket just like that. major capex are required. planted land carry much higher value is after taking into account planting cost, maintenance cost (fertilisers, workers etc.) and your interest/opportunity cost over the years.
Jay not sure what's the market price for unplanted plantation land but doesn't look like Puncak is overpaying. advantage of planting by your own compared to buying mature plantation is the total lifecycle cost is likely to be cheaper but you will need to incur high capex and long waiting time.
such investment is good for long term but sucks for short to medium term. imagine the first batch of less than 5% of your trees will only produce fruits in 2-3 years time and peak in 5-6 years time. the management should balance short and long term performance even though they have huge cashpile to burn for years
hng33 Puncak acquire planted portion of 9,766.90ha valued at RM18,500 per acre, Unplanted portion value at RM3,500 per acre is very undemanding and attractive price.
Imaging by just plant it in the land, the unplanted value will surge from merely RM 3500 per acre surge to more than 400% increment in value to RM18,500 per acre in less than 2 year.
Of course, some capex needed such as planting cost, maintenance cost (fertilizers, workers). but if you comparing cost and 2 year old tree for plated 1 acres, the value is surge from RM 3500/acre to RM 18,500/acre is still far much much better for Puncak in turn return of assets
Once these planted reach maturity in another 4 year, thees plant will surge another round in value to more than 50,000/acres as it start bearing fruit and harvesting. The return of asset is tremendous.
kahhoeng I would rather Puncak dump all money this fashion... At least I know that land is not overpriced and value will emerge when the trees are matured. At least I know the business deal is real and requires only a performing management team. Of course, hope Puncak can make it.
Jay prime plantation land can sell at >60k/hectare or 24k per acre. the problem is you have to first suffer 4 years of high cost no yield, then another 3 years of high cost low yield. it's an investment. it's not a get rich quick scheme, if not everyone will be planting oil palm and flipping for profit
Jay another potential problem is timing. now CPO price is good, but market already talking about weaker CPO price by 2H next year after El Nino effect is over. so what will be the CPO price when Puncak's plantation matures? that's the huge risk there especially for commodities biz
rogers123 Kahhoeng: if the acquisation is good. The share should fly now. Not down. The land acquired belong to puncak or goverment? Or puncak only acquire the right to plant on the land. Anyone can answer me this?
rogers123 Hng plz answer this
Jay puncak has 1.1b net cash at June. now they spend 270m here. first 6 months of the year net cash outflow almost 100m, annualised will be close to 200m. with planting capex will increase substantially, opex will also increase while income is minimal. if they just rely on existing loss making biz + new plantation biz, they could burn through the cashpile in less than 3 years time. so be careful with the net cash angle when investing in Puncak
kahhoeng roger, jay, yes, you are right, but don't worry, I won't sell my shares so long that the plantation is bought at this price and Puncak is committed to developing them. Would be great if Puncak is a pure plantation stock in a year or two.
And Jay, please go and read the quarter report, for the 6 months in operation, Puncak operation cash flow is a negative RM 45 million, rather than your said RM 100m.
r°Moi Should be ok la
ROI should at the least has been evaluated....
Legitimate expectation of being issued land titles verified by Rozali the lawyer
It is just the time to maturity....
With Pan Borneo Highway bringing accessibility...
And .. all the dams
Sarawak... the country... will be very different in the near future.... be there
r°Moi Roger123... still looking at Sarawak as only jungles... with only native land titles
r°Moi Do a bit of purposeful waiting la....
hng33 Most of Sarawak plantation land are leasehold, you can check wtk, jtiasa, taan landbank, in whcih the land ownership is under state, and private company is given right development eg. 60 year for palm plantation
Puncak today share price down -2 sen in response to these venture into plantations in Sarawak as the benefits will only be realized in the longer term, no short term recovery.
However, the trading volume for puncak is NOT at all active, nor knee jerk selloff. I believe given time, Puncak will resume north later.
Awaiting for Puncak to acquire next target triplc which is immediate earning accretive
Jay net cash outflow is 97m. if just focus on operating cashflow, then capex cost will be ignored
r°Moi Starting from this November... to make the waiting easy... Rozali.... can pay an annual high divvy
Jay at current market cap of 500m, even if 20 times PE will need RM25m annual profit. Existing biz losses easily 60-80m a year plus some losses from the new plantation. to get a biz that immediately contributes RM100m profit with its remaining cash of 800+m is not easy. need to cut down the losses, acquire profitable biz and grow its profit before its share price can move up
r°Moi PUNCAK has ceased most of its existing operations .. coming year still will lose easily 60-80m a year?
rogers123 Sifu Hng holding: I alreay have diversified stock portfolio divided into dual trading account, cash account and margin account. Among the stocks in portfolio are largest stake Gamuda + WE, Wtk, Hsl, ekovest, Malton, mkland, Ksl, Puncak, airasia, kps , IWCITY, bjcrop, Trop, Maybulk, Genting, Drb, ho hup and some smaller stock holding
r°Moi PUNCAK has downsized its O&G... water operation is also small... construction loss due to sub-con screwed up... now remedied
Anyway... has not seen the investment income from its heap of cash pile
r°Moi Is there legitimate expectation to get 38,000,000 ie 950,000,000 × 4% from the King?
rogers123 Hng: ur puncak still north or south?
hng33 paperplane2016 see? complain again, sissy
Hahahaha.... Likeminded get backfire :)
r°Moi Puncak and KPS share lots of same traders.... and KPS more in today
hng33 Every stock have its D- day, today is Kps, next day could be Puncak. So, just be patience when come to time awaiting for reward. Stock with potential will eventually shine :D)
Those keep complaining on everyday share price are typical loser minded-----> clown roger123
rogers123 Hahahaha. I will buy when puncak is below rm1.00 again.
rogers123 Hng: U got so many clown friends in this forum. Im wondering how u gonna defend urself, u get so many enemies shooting u everyday
sell Agree with roger123. Main reason is hng33 sell call in stocks he owned before.
Posted by rogers123 > Oct 20, 2016 07:36 PM | Report Abuse
Hng: U got so many clown friends in this forum. Im wondering how u gonna defend urself, u get so many enemies shooting u everyday
hng33 Hehe.....狗嘴里吐不出象牙 <------clown roger123 + clown gang ------> pity
hng33 Grab more Puncak at 1.10
4444 CIMB said Puncak loss will continue.
SALAM Rozali should be very thankful to our sifu hng33 for keeping the warmth on....
kahhoeng CIMB's report can't even get the fact right, and you are citing his conclusion? LOL...
hng33 hahaha, willing buyer, willing seller ---> bear own risk, enjoy own reward
linges hng33...i believe now u r in paper gain ready :))
firehawk dun believe CIMB lah .... believe the expert here better, know every tiny thing, most important is , tp =2.30, more than 100% gain, very very Good !!
jacklintan If Selangor is won back by BN, what will happen to Puncak stock?
kahhoeng the more I read into the plantation deal, the more I don't like about the deal...
micky92 Tabung haji continue buying..
r°Moi Sarawak Oil Palms
..acquires young estates in a deal worth MYR873m in cash via rights issue and borrowings. Valuation wise, we believe the brownfield estates are fairly priced at an implied EV/planted ha of ~MYR34,000.
Proposes to buy SYOP’s 47,000 ha landbank
Sarawak Oil Palms (SOP) has proposed to acquire a 100% equity stake in Shin Yang Oil Palm (Sarawak) SB (SYOP) from its major shareholder Shin Yang Holding S/B for MYR873m cash. SYOP owns 47,000 ha of land in Sarawak, of which 23,798 ha has been planted with oil palm trees (and another 6,722 ha plantable reserves).
Motivated by scarcity of land and decent pricing
SOP rationalises that there is scarcity of suitable and sizeable land banks for oil palm cultivation in Sarawak which are available for acquisitions. Furthermore, SYOP’s plantations are planted on mineral soil.
Motivated by scarcity of land.... mineral soil.
r°Moi KUALA LUMPUR: Ta Ann Holdings Bhd will boost its plantation land by 5,280ha through the proposed acquisition of the entire equity interest in Agrogreen Ventures Sdn Bhd for RM211.14mil.
In a filing with Bursa Malaysia, the Sarawak-based timber and palm oil producer said it had on Monday inked three separate conditional share sale agreements to acquire 100% equity interest in Agrogreen.
Agrogreen’s main assets are its mineral soil land bank of 5,280ha in Lundu, Sarawak, of which more than 5,090ha have been planted with oil palms age one to five years old. Based on the planted acreage reported in its latest annual report, this would increase its planted area by over 6% to 87,372ha.
One of Agrogreen’s shareholders, Mohamad Sabry Othman (holding a 15% stake), also sits on the boards of two of Ta Ann’s subsidiaries representing the interest of Lembaga Amanah Kebajikan Masjid Negeri Sarawak.
Ta Ann said the proposed acquisition was a strategic investment in vuew of the scarcity of “sizeable suitable” oil palm plantation land in Sarawak.
“With over 90% of the land having been planted with oil palms, the proposed acquisition will contribute to the group’s fresh fruit bunch production and thereby to the futire earnings of the group,” it added.
The proposed purchase is expected to be completed during the first half of next year.
....main assets are its mineral soil land bank....
.....scarcity of “sizeable suitable” oil palm plantation land in Sarawak.
r°Moi ... scarcity of “sizeable suitable” oil palm plantation land in Sarawak..... mineral soil.... this kind of land will fetch a even high price in near future....
Everyone is going to Sarawak.....
r°Moi An even high price in near future.... so hopefully the immediate lack of substantial income will be compensated by appreciation in the land value.....
Looking forward to November.....
kahhoeng i will oppose the deal unless a cash opt-out for shareholders not trusting the management is offered!