THE INVESTMENT APPROACH OF CALVIN TAN

SARAWAK OIL PALM (SOP) VERSUS UNITED PLANT & BLD PLANT: Compare their Share Prices & Planted Acreages, Calvin Tan (Part 2)

calvintaneng
Publish date: Thu, 30 Sep 2021, 09:32 AM
calvintaneng
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Hi Guys,

I have An Investment Approach I which I would like to all.

Good morning

In our last post we mentioned that SOP P/E is lower than both Uplant & BLD PLant

SOP is also sellling below Net Book Value while both Uplant & BLD PLant were selling above price to book value

 

Now let's see their Total Plantation lands

 

1) SOP

 

Total Acreage is 87,964 Heactares

To convert to Acres Multiply by 2.471

87,964 x 2.471 = 217,359 Acres

Of these 92% are Now Mature and at Prime Production Age

 

2) UNITED PLANT

46,645 Hectares

Convert to Acres Multiply by 2.471

46,645 x 2.471 = 115,259 Acres

Mature is 91%

 

3) BLD PLANTATION

51,303 Hectares

Acres = 51,303 x 2.471 

= 126,769 Acres

 

From the Above we see

1) SOP - 217,359 Acres (Current Share Price: Rm3.56)

2) UPLANT - 115,259 Acres (Current Share Price: Rm13.66)

3) BLD PLANT - 126,769 Acres (Current Share Price: Rm9.06)

SOP has 47% more Oil Palm lands than UPLANT

SOP has 42% more Oil Palm lands than BLD PLANT

 

 

John Neff quote: I don't read, much less follow, the valuations or  predictions...

 

 

Now take a look again at the Numbers below

 

 

SOP (5126) at Rm3.50 Versus BLD Plant (5069) at Rm9.10 or Versus United Plant (2089) Rm13.60: Compare & Contrast their EPS, Dividend & NTA, Calvin Tan

Author:    |    Publish date: 

 


 

Dear friends (Please read to the end as we type

It is by searching, digging through research & deep study that we find value. Especially hidden Gen of Value. One such Gem is SOP (Sarawak Oil Palm) Why SOP?

The answers are startling

Just see their results below

 

SOP

SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2021

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Jun 2021
30 Jun 2020
30 Jun 2021
30 Jun 2020
$$'000
$$'000
$$'000
$$'000
1 Revenue
949,046
626,060
1,737,368
1,144,144
2 Profit/(loss) before tax
146,620
51,513
259,653
147,823
3 Profit/(loss) for the period
107,918
41,028
194,528
115,337
4 Profit/(loss) attributable to ordinary equity holders of the parent
98,320
38,342
177,377
109,545
5 Basic earnings/(loss) per share (Subunit)
17.20
6.72
31.04
19.19
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
4.4800
4.1600
 

 

SOP latest result is 17.20 sen

Annualised is 4 X 17.20

= 68.80

At Rm3.50 the Forward P/E is

 Rm3.50 divides by 68.80

= 5.08

That means you can double your investment in 5.08 years if earnings are sustained

68.80/Rm3.50 gives a yield of 19.65

More than 10 X (Times) Bank FD at Rm1.75% per year

 

Its NAV is Rm4.48

So SOP is selling at Discount of 22% to Book Value

It gave a dividend of 6 sen

 

2) BLD Plant

SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2021

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Jun 2021
30 Jun 2020
30 Jun 2021
30 Jun 2020
$$'000
$$'000
$$'000
$$'000
1 Revenue
540,488
396,518
540,488
396,518
2 Profit/(loss) before tax
23,644
6,252
23,644
6,252
3 Profit/(loss) for the period
16,802
4,538
16,802
4,538
4 Profit/(loss) attributable to ordinary equity holders of the parent
16,212
4,415
16,212
4,415
5 Basic earnings/(loss) per share (Subunit)
17.34
4.72
17.34
4.72
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
6.9500
6.7800
 

 

At Rm17.34 this Qtr

Annualised 4 X 17.34 = 69.36 sen

Current price is Rm9.10

P/E is Rm9.10 divides by 69.36

= 13.1

Yield is 69.36/Rm9.10

= 7.6%

NAV is Rm6.95

At Rm9.10 BLD is selling at 1.3 X (Times) Book Value

Dividend 

No dividend for years 2019, 2020 & 2021

Last dividend was 3 sen in year 2018

BLD Plant? BLD stands for Breakfast, Lunch & Dinner? Why no dividends for 3 years?

This shows that SOP beats BLD Plant hands down

SOP 19.65% yield versus BLD 13.1 sen

SOP sells at Discount to Book Value While BLD sells above Book Value

 

3) UNITED PLANT

SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2021

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Jun 2021
30 Jun 2020
30 Jun 2021
30 Jun 2020
$$'000
$$'000
$$'000
$$'000
1 Revenue
481,869
294,317
881,523
613,226
2 Profit/(loss) before tax
186,673
149,661
278,585
267,305
3 Profit/(loss) for the period
136,707
124,060
212,417
205,588
4 Profit/(loss) attributable to ordinary equity holders of the parent
135,785
123,586
210,610
204,776
5 Basic earnings/(loss) per share (Subunit)
32.74
29.80
50.78
49.37
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
6.1800
6.3200
 

 

UPlant this Qtr 32.74

Annualised 4 X 32.74

= Rm1.30

Price Rm13.60

P/E is Rm13.60 divides by Rm1.30

= 10.5

Yield is 9.5%

Of this Uplant gave out 15 sen dividend & 50 sen Special Dividend

Total given out is 4.7%

 

NAV is Rm6.18

At Rm13.60 Uplant is selling at 2.2 X (Times) Book Value

 

Now the only thing between SOP is SOP won in earnings & Net Assets Value

But UPlant won in Dividend Payout

SOP Could raise its Dividend Payout & Price should rise Above its NAV

From here we SEE Earnings of SOP are Superior and It is selling at Discount to Net Assets while BLD Plant & UPlant are selling above Book Value

 

AND WE CAN SEE VERY CLEARLY SOP IS AN OUTRIGHT BUY AS IT IS NOW SELLING BELOW INTRINSIC VALUE.

What is intrinsic value? Definition and examples - Market Business News

 

 

 

 

 

 

Best regards

Calvin Tan

 

Please buy or sell after doing your own due diligence or consult your remisier/fund manager

 

 

 

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