Hi guys

Thplant results are out. On the surface it does not look good. But dig deeper & you will KNOW THE TRUTH

Let's compare Jtiasa, Bplant with Thplant

Jtiasa

JAYA TIASA

From above we note that Jtiasa 

Revenue = Rm239.238 Millions

Profit is Rm51.074 Millions

To get percentage Divides Rm51 Millions by Rm239 Millions

About 21.3% profit

Bplant

BPLANT

BPLANT RESULTS

Revenue is Rm341 Millions

Profit about Rm85 Millions

To get percentage divides Rm85 millions by Rm341 Millions

= 24.9% profit

Jtiasa has 206,000 acres of Palm oil

Bplant has over 220,000 acres

Thplant has over 240,000 acres

Since both Jtiasa & Bplant are in similar Palm oil business Thplant should also perform likewise

Now look at Thplant

THPLANT RESULTS

REVENUE IS RM247.547 MILLIONS

Thplant revenue of Rm247 Millions is more than Jtiasa revenue of Rm239 Millions but less than Bplant Rm341 Millions

So if both garnered 21% to 24% profit Thplant if perform uniformly should also register a 20% above profit

But look at the abnormally

The profit is only Rm9.641 Millions

How many per cent?

Divides Rm9.641 by Rm247.547 Millions

= 3.8%

How come Thplant only get a tiny 3.8% profit when Cpo is sold above Rm4,500 per ton?

To get the answer let us go look up the balance sheet of Thplant

So this is the Biological paper loss mark down?

It has no effect on Company's Real Earnings as the depreciation is only on paper.

Now why should Thplant mark down its assets in such a bull run time. That we do not know as yet.

Ok let's say Thplant postpone this mark down to a later time (as can be done in accounting purposes)

The results should then be Rm56,590,000 divides by 

56,590,000 divides by Rm1,828,000 x 0.21

= 6.5 sen

So here we are

Thplant if taken out Biological asset impairment would have made a very nice 6.5 sen this quarter

Rumour out there said Tabung Haji might want to take Thplant private though not confirmed

If result of Thplant (6.5 sen)could beat both Jtiasa 5.28 sen profit & Bplant (3.8 sen profit) then it will be very hard for Tabung Haji to take Thplant on the cheap

See

Tabung Haji may take its palm oil firm private

KUALA LUMPUR: Lembaga Tabung Haji (TH) is considering taking its agricultural firm, TH Plantations Bhd, private, people with knowledge of the matter said amid a rally in palm oil prices.

TH has asked banks for proposals on the potential deal for the owner of palm oil and rubber plantations, one of the people said, asking not to be identified as the information is not public.

Shares in TH Plantations have risen 4% in the year to date, giving it a market value of about RM526 million. TH owns 73.8% of the company.

Discussions are still in the early stages and TH could decide not to proceed with the plan, the source said.

TH and TH Plantations did not respond to requests for comment today.

The potential privatisation of TH Plantations comes after palm oil prices reached an all-time high in May, triggering a flurry of deals activity among Malaysian planters.

Palm prices are expected to remain high due to lower production of palm oil and other oils, planters Sime Darby Plantation Bhd and FGV Holdings Bhd said this month, following the release of their latest quarterly earnings.

The challenges of meeting environmental, social and governance requirements around issues such as sustainability and labour rights are contributing to consolidation in the sector, according to analysts.

TH was set up in 1963 to offer shariah-compliant financial services for Islamic savers planning to make the pilgrimage to Mecca, Saudi Arabia. The state-owned fund, which also offers logistical assistance for pilgrims, has about nine million depositors and 123 branches, according to its website.

The government in July announced plans to improve the fund’s management and operations, including a move to list it as a prescribed Islamic financial institution.

Best regards

Calvin Tan

Please buy or sell after doing your own due diligence or consult your Remisier/Fund Manager