Dear Investors & Traders of i3 Forum,

We are happy to bring you ThPlant (5122).

This is a small Cap Palm Oil stocks of KLSE with huge Palm Oil Land Acreage of over 230,000 acres of Oil Palms. 230,000 acres is larger Singapore land mass of 180,000 acres.

Let's look at Thplant last quarter results

EPS (Earnings per share) is 1.69

Forward 4 qtrs Eps 

= 1.69 x 4 = 6.76 sen

At 47 sen the P/E is 47 divided by 6.76

= 6.95 (P/E)

The yield is 14.3% 

The Price now is undemanding as if all goes according to order you will double your money in less than 7 years

With Fcpo ranging from Rm3300 to Rm4500 recently the August 21 results of ThPlant will be better

since FFB (Fresh Fruit Bunches) have increased for April & May 2021 in comparison to January, February & March 2021

Let's do a break down

Refer to Bursa Website under Thplant

We wish to announce that the production figures of TH Plantations Berhad Group for the month of January 2021 are as follows:

For brevity we only take FFB at 44,983.28 (Metric Tonnes) January 2021

We wish to announce that the production figures of TH Plantations Berhad Group for the month of February 2021 are as follows:

FFB for February is 41,167.04 (Metric Tonnes)

We wish to announce that the production figures of TH Plantations Berhad Group for the month of March 2021 are as follows:

MARCH FFB is 53,071.05 (Metric Tonnes)

From these 3 months we can deduce its average monthly yield by adding all 3 & divide Sum Total by 3

So 44,983.28 + 41,167.04 + 53,071.05

= 139,221.37 (Metric tonnes)

Now divides by 3 to get monthly average

= 46,407.12 (Metric tonnes)

That means Thplant with 46,407.12  (Metric Tonnes) for 3 months have given a profit of 1.69 sen in one quarter

Now look at April & May 2021 FFB 

We wish to announce that the production figures of TH Plantations Berhad Group for the month of April 2021 are as follows:

APRIL 2021 FFB is 56,212.27 (Metric Tonnes)

We wish to announce that the production figures of TH Plantations Berhad Group for the month of May 2021 are as follows:

MAY 2021 is 59,643.10 (Metric Tonnes)

Now June 2021 FFB will only be out after June 30th 2021 (for that we wait. Expected to be more)

Now let's get the average for April & May 2021

56,212.27 + 59.643.10

= 115,855.37

And divides by 2

= 57,927.68 (Metric Tonnes)

NOW WE CALCULATE 1 ST QUARTER TO 2ND QUARTER PROJECTED INCREASE BY PERCENTAGE

57,927.68 less 46,407.12 (1st Qtr average)

= 11,520.56

To get percentage increase divides 11,520.56 by 46,407.12

= 24.82%

Now from here we can "SEE" that THPLANT August Results will be above 2 sen on condition that there is no impairment or currency exchange losses

In any case from Clear cut deduction the "Operation Side" will be good to excellent in coming months

More good news of Value Unlocking

THPLANT intends to Sell 6 Estates to Lock in Gains as well as pare down borrowings

2 Pieces of Palm Oil Lands in Bintulu just got a Boost by the New Mukah Airport which is only 1 1/2 hour away near Bintulu

4 More Pieces for sale are near Kuching where the earliest stretch of Pan Borneo Highway now completed

So from many angles THPLANT looks like a Stock with Great Potential to Rebound

Let's take a look at 10 Year Prices of THPLANT

From STOCK PERFORMANCE GUIDE (2014 Sept Ed) by Dynaquest (page 382)

CRITICAL STOCKMARKET INFORMATION

Year....Price.. Range

2006...0.70....1.13

2007...0.98....1.54

2008...0.78....1.59

2009...0.98....1.48

2010...1.17....1.76

2011...1.54....1.90

2012...1.60....2.49

2013...1.60....2.00

2014...1.64....2.18

In years when Cpo prices were high the Price of Thplant crossed Rm2.00 in 2012, 2013 & 2014 for 3 years

If Cpo can just sustain above Rm2800 to Rm3200 a tonne can we expect THPlant to reach Rm1.00? According to Thplant they said their cost of Cpo production only Rm1,465 (Metric Tonne)

And if CPO maintain above Rm3300 to Rm4000 range we can expect THplant to reach its former glory days of over Rm2.00

Thplant now 47 sen

Target price is 94 sen

A modest 100% upside in one year.

Best Regards

Calvin Tan Research

Please buy or sell after doing your own due research

Or please consult your Remisier, Fund Manager, Accountant & Auditor

Coming up next post

Why TSH Resources is 80% similar to  IjmPlant

After IjmPlant TSH Resources might be  another candidate for Takeover