Koon Yew Yin's Blog
TDM is ridiculously undervalued, TDM is the best plantation stock to buy - Koon Yew Yin
Koon Yew Yin
Publish date: Thu, 03 Mar 2022, 06:08 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Yesterday I posted my article namely “CPO hits historical high” in which I pointed out the share prices of SOP, Ta Ann and Jaya Tiasa shot through the roof. Many of my readers asked me which plantation stock is safe to buy. That is why I am writing about TDM.
TDM press release as follows:
TDM’S FY2021 PBT LEAPS TO RM81.4 MILLION WITH REVENUE OF RM511 MILLION, HIGHEST IN 10 YEARS
Key Highlights: • Plantation division: Stronger performance from higher average of CPO and PK prices. • Healthcare division: Recovery is inching further towards hitting pre-pandemic level, with a few hospitals already recorded revenue beyond pre-COVID achievement. Kuala Terengganu, 28 February 2022 – TDM Berhad (“TDM” or “the Group”) today announced its financial results for the fourth quarter ended 31 December 2021 (4QFY2021). The Group's revenue for the 4QFY2021 improved by 27% compared to the corresponding quarter. This was mainly due to higher revenue from the plantation division by RM30.8 million or an improvement of 42%, and the healthcare division by RM4.6 million or an increase of 8%. The Group recorded a Profit Before Tax (PBT) of RM67.1 million during the quarter, an increase of 17 times compared to RM3.8 million in the same quarter the year before. For the year ended 31 December 2021 (FY2021), the Group’s revenue improved by 15% compared to the previous year as a result of the revenue growth from its plantation division by RM46.8 million or 19% and healthcare division by RM21.3 million or 11%. The Group also registered a substantial increase in PBT by RM71.8 million, more than 8 times increase recorded during the year ended 31 December 2020 (FY2020). The Group reported an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of RM181.9 million for the FY2021, compared to RM109.6 million the year before. The profit before tax of RM67.2 million and RM81.4 million for 4QFY2021 and FY2021, respectively, are inclusive of a one-off accumulated profits amounting to RM40.4 million from sublessees scheme.
My comment:
Despite TDM’s highest revenue and profit in 10 years, its share price did not shoot up like all the other plantation stocks because it reported a small reduced profit in its latest quarter due to the write off a dis-continued operation. You can see TDM price chart below.
Since TDM wrote off the losses due to a dis-continued operation in its 2021 annual account, TDM should report better profit for the next few quarters due to the historical high CPO price.
TDM has 44,247 Ha of fully planted oil palm plantation and based on Rm 70,000 per Ha, which has an open market value of Rm 3,100,000,000.
TDM has 5 private hospitals. Based on an average cost of Rm 100 million per hospital, TDM’s 5 hospitals has an open market value of Rm 500 million.
TDM has Rm 54,685,000 loan and 216 million trade payable Rm, total debt Rm 270 million.
TDM net asset value is Rm 3100 million from plantation + Rm 500 million from the 5 hospitals – Rm 270 million debt = Rm 3,330 million.
Total number of issued shares is 1,725 million. Net assets value Rm 3,330 million divided by 1,725 shares = Rm 1.93 per share. The last traded price is 31 sen and its NTA is Rm 1.93.
TDM is ridiculously undervalued. TDM should report better profit for the next few quarters due to the historical high CPO price as shown on the CPO price chart above.
I am obliged to inform all my readers that TDM is my largest investment. I am not asking you to buy. But if you decide to buy, you are doing it at your own risk.
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Discussions
Be the first to like this. Showing 50 of 56 comments
buying some wont hurt anyway, ride the sector in play just need to know when to enter and exit
2022-03-03 21:18
Geezer has cunningly excluded pertinent information as usual to deceive readers to buy this stock to profit at higher prices. Please don't take his analysis seriously as school boys can do a better job. It's riddled with inaccurate assumptions and exclusion of material liabilities. Stay invested in well managed companies like JTIASA, BPLANT, HSPLANT and TAANN, among others, cheers.
2022-03-03 21:26
Unker, you always enter so late la. Everyone is already in palm oil since February. Some more the choice of stock you made is really not good at all. Badly managed company. Based on your track record in steel, I think its time for you to try another game.
2022-03-03 21:51
Cannot follow lah. Uncle Koon no more applying his 'Golden Rule' selection.
2022-03-03 22:17
There are three plantation counters that I will never touch, they are TDM, Harnlen and Pinepac. Keck Seng is also grossly undervalued. It has thousands of hectares of plantation land in JB that has not been revalued for 40 years.
2022-03-03 22:28
Dear Mr Koon Yew Yin, if you bought Genting (3182) you would be standing on the shoulder of giants and you would have the cheapest exposure to Genting Plantations but alas, you chose the shortcut, and they always lead astray.....
Sincerely,
emsvsi
2022-03-03 22:33
You all be surprise TDM will make RM90mil - RM100mil 2022. TDM past losses due to wrote off dis-continued operation [Kalimantan estate] & if disposal Kalimantan estate progress well , TDM should report better profit for the next few quarters 2022,due to the historical high CPO price. TDM indeed very undervalue! Fair price RM0.60 above...
2022-03-03 23:09
Dont listen to this kon KYY , i got caught in AT cause of him promoting how good is AT etc. He will start distribute when u guys buying. Just trade carefully and goodluck :)
2022-03-03 23:54
If you are not asking people to buy.why u posted this article ?
Dun talk kok here
2022-03-04 06:40
May be uncle K wants to liquidate his TDM share after seeing disappointing Q4 results? hehehe...
2022-03-04 07:24
What lousy simple minded analysis. Similar to his helicopter hype years ago on JTiasa when it was above RM2.00. He sold his entire holdings when followers bought in and laughed at them subsequently for not getting out quick enough. This is an evil old conman with no conscience. Beware. TDM is cheap for good reason. There may be more large write offs to come from discontinued operations since RM105 million of its assets is still held in the books.
2022-03-04 07:55
For months this fox has been promoting all kinds of steel counters, then suddenly informs his readers that TDM is his largest investment. Readers who take him seriously should contact me first. I know a way to earn 1 billion ringgit, but you must first wire me 10 million first, no questions asked.
2022-03-04 08:26
If you look at the board of directors and management, all are Haji haji make me loss all my appetite and all the confident gone gone and gone. I can't imaging KYY can confidently recommend this stock and he can believe all these Haji2 can do a good job ? KYY intention is christel clear. cheat the poor retail investors and make all these Haji haji making millions in the process of his stealing. So beware guys.
2022-03-04 08:34
i am holding TDM just like Mr Koon Yew Yin. He is a value investor. I aim to double my investment ..lets just see whether i am right or wrong...i am holding 50K shares..not much,,but still some money there..my cost is at 0.32cents which i bought long time ago.
2022-03-04 09:40
well, frankly. a lot of people invest not knowing what they are doing. Mr Koon principal is very simple and easy to use. He is a good old man, perhaps he does have some mistakes..but no one is GOD..not even analyst. My investing principle is simple, buy what you know and buy those company with good earnings growth.. and trading at a reasonable PE valuation or PEG. good luck.
2022-03-04 09:47
When someone tells me that Maybank is his largest investment, I will tell him that "you made the right choice". When someone tells me that TDM is his largest investment, I will tell him "be careful, you may lose all your money!"
2022-03-04 09:54
same pattern like ays prestar leonfb etc. so undervalue. cheapest steel stock. lowest pe. my largest hplding. blaa bla bla. then, stock is hopeless. i have sold. typical granpa conyewyin.
2022-03-04 10:05
Record-high CPO price as well as the continuing rehabilitation TDM oil palm programme, will expedite the divestment Kalimantan estate. If successfully disposal Kalimantan estate, worst is over for TDM 2022! With new experienced CEO & CFO appointed recent months, things look bright for TDM 2022 onwards. Recent media release if investor look carefully, TDM make good profit & revenue, highest in 10years. With CPO 5,000 - 8000, TDM will make fantastic net profit RM100mil - RM200mil 2022! Super-Bull -Run All Palm Oil Stocks 2022, including TDM will make historical net profit & investors will get better dividends & bonus shares. Happy invest in Palm Oil stocks....
2022-03-04 10:59
don't be silly , the monthly cpo production of TDM is merely 4000 ton, revenue received hardly enough for workers and management. tdm should be treated as small holder, not qualified for the mainboard, jaduh standard
2022-03-04 11:19
typical gambler mindset. Hoping for fast buck in the shortest of time at the expense of the innocents ones. That's why i have lost all my respect for you years ago..
2022-03-04 12:04
Few yrs ago uncle strongly recommended Jtiasa, Because of its recommendation, may investors kena burned kau2 . Now he highlighted TDM which lost money for
several yrs. OMG
2022-03-04 12:31
Everyone should sell TDM to KYY.
TDM plantation land are lease or sublease land, no value.
Moreover:
KUALA LUMPUR (Dec 30): The Indonesian government has filed a RM293.67 million lawsuit against TDM Bhd?s oil palm unit PT Rafi Kamajaya Abadi (RKA) for allegedly acting illegally in relation to a fire incident at the subsidiary's land in West Kalimantan province in 2019
2022-03-04 13:27
Back then whatever he touches go up , nowadays MODERN TIMES whatever he touches goes down ~
2022-03-04 14:11
Hehe....two years ago, uncle said he will not buy Government Listed Companies (GLC)) because they are managed by civil servants and politicians. One year later, he recommended KPS (Kumpulan Perangsang Selangor) and now TDM, Terengganu state government GLC.
2022-03-05 09:14
https://sg.yahoo.com/news/unofficial-capacity-pompeo-urges-us-061845536.html
https://sg.yahoo.com/news/china-pledges-peaceful-growth-taiwan-021142174.html
China just said, like Putin said days ago, no interference by outsiders...the war there the Nato better not to send any army/personnel in, the magnitude of the invasion is too much for the Nato to digest.
In the war, it is not unusual for the winning side to even suffered for the casualties...western media/journalists may got shot also if traveled into the war zone, then put the blame on Russia.
Russia is disciplining Ukraine...like fighting between the family/neighbours. No outsiders please, Russia is not bombing Nato members. But if Nato members are supplying arms/ammo to Ukraine...likely it may lead to nuclear war
This Pompeo in Taiwan, if there is anymore of 1 more gram of self-respect or ashamed of himself...
2022-03-05 12:42
These western Amalekites, ganged up on readiness to fight only. Got UN, EU, what else...allied here , allied there.
Many ran away from their authority, violated the laws of their kings, moved to the New World...the idea of freedom, free of speech/badmouthings/divide and rule/provocation/back stabbing, free from God, liberalism, same sex marriage (already in Taiwan),
THE Russians never play anybody out, business is business, you can trust them...they don't produce hand phone but military equipment/fighter jets, fuel/oil, no durians of course.
But those western, filthy and how to trust them? You see the trade war, hong kong, taiwan, south China sea,
During WW2, the Nazi Ukrainians killed many Jews there. I saw the news , got a Monument for the tragic
event. Ukrainians are to pay their price, via this Jewish president, a comedian? Putin also maybe do a favor for them and to protect Russia. Putin got sheltered by a Jewish family during his childhood when facing poverty, he has great respect for them, that's why when Syria got bombed by Israel, Putin is not attacking Israel. But this dumb Zelensky
2022-03-05 13:45
birds of a feather flock together. fascist ,communists dictators all alike.
2022-03-05 14:01
"My stock selection golden rule is that the company must report increased profit for 2 consecutive quarters. " His golden rule seems not so consistent now in TDM
2022-03-08 20:09
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Is FY2022 earning good ? What about the $294 mil lawsuit by the indonesian government which remain outstanding ? What about TDM's track record and managememt quality ?
2022-03-03 19:28