Dear Investors
One of the best angle for Investing in Palm oil lands stem from its Precious Undervalue Land Holdings
See one example from Southern Steel land disposal in Sg Tiram in Johor
KUALA LUMPUR (Dec 3): Southern Steel Bhd is disposing of two parcels of land in Sungai Tiram, Johor for RM65 million cash, to repay the group’s borrowings.
The steel company inked a conditional sale and purchase agreement with aluminium manufacturer Sinppa Industrial Sdn Bhd for the land disposal measuring approximately 31.05 acres.
The price consideration was arrived at on a willing buyer-willing seller basis, said Southern Steel in a bourse filing on Thursday (Dec 2), adding that the group expects to realise an estimated net gain of approximately RM6.42 million from the disposal.
Following the disposal, the group’s gearing ratio is estimated to reduce to 1.10 times, from 1.19 times, it added.
Note:
The Sale is 31.05 Acres of Land
Price sold: Rm65 Milllion
To get cost per acre
Divides Rm65,000,000 by 31.05 acre
= RM2,093,397
THAT IS RM2.09 MILLIONS AN ACRE
HOW FAR IS SQ TIRAM FROM JB CBD
See
About 25.3 Km or a journey of 37 minutes
1) SEE FGV
NOW FGV Has Lands in Tebrau valued at only Rm3,150 per acre
How far is Tebrau to JB CBD?
See
FROM THE ABOVE WE CAN SEE THAT
FGV LANDS AT RM3,150 Per Acre is nearer to JB City than Southen Steel land sold at Rm2.09 Millions
How many times more value is Rm2.09 Millions over Rm3,150?
Answer: 663 Times more.
This shows that FGV Assets are grossly undervalue.
No wonder that Felda wants to take FGV private.
2) SEE THPLANT
Now Thpant the Small Cap Palm Oil Company also got 240,000 Acres of Plantation lands
Take a look at its 10,000 Acres land in Kluang, Johor
Refer to Thplant AR (Annual Report)
From the above we see Thplant has 4,058 hectares of palm oil estates book value Rm74,265,000
To get acre multiply 4,058 by 2.471 = 10,027 acres
To get cost per acre divide Rm74,265,000 by 10,027
= Rm7,406 per acre
These are lands planted with Matured Oil Palms. Today oil palm lands are worth from Rm40,000 to Rm60,000 per acre in Kluang, Johor
So Thplant is another Palm Oil company with very undervalue assets.
Another candidate for privatisation?
Warm regards
Calvin Tan
Please buy or sell after doing your own due diligence or consult your remisier/fund manager
Created by calvintaneng | Feb 25, 2024
Created by calvintaneng | Feb 25, 2024
Created by calvintaneng | Feb 24, 2024
Created by calvintaneng | Feb 24, 2024