Dear Investors of i3 Forum,

We posted TSH RESOURCES & BPLANT AS JEWELS Among Palm oil Stocks.

To night we are happy to highlight another Palm oil Jewel - HAP SENG PLANTATION (5138)

3 Things Stand out

1) HS PLANT IS 100% PURE UPSTREAM PALM OIL

2) HS PLANT SELLS SPOT

3) HS PLANT DIVIDEND POLICY IS SIMILAR TO BPLANT WHICH IS 60% FROM PROFIT

First why the Sell Down of HS PLANT After Ex-Dividend of 15.5 sen

It was due to Profit Taking from Hap Seng & EPF Selling down

See

GEK POH (HOLDINGS) SDN BHD	11-Mar-2022	Disposed	260,000	0.000
TAN SRI DATUK SERI PANGLIMA LAU CHO KUN @ LAU YU CHAK	11-Mar-2022	Disposed	260,000	0.000
HAP SENG CONSOLIDATED BERHAD	11-Mar-2022	Disposed	260,000	0.000
EMPLOYEES PROVIDENT FUND BOARD ["EPF"]	10-Mar-2022	Notice of Person Ceasing	6,000,000	0.000
EMPLOYEES PROVIDENT FUND BOARD ["EPF"]	09-Mar-2022	Disposed	4,998,000	0.000
EMPLOYEES PROVIDENT FUND BOARD ["EPF"]	08-Mar-2022	Disposed	2,199,100	0.000
GEK POH (HOLDINGS) SDN BHD	08-Mar-2022	Disposed	1,080,000	0.000
TAN SRI DATUK SERI PANGLIMA LAU CHO KUN @ LAU YU CHAK	08-Mar-2022	Disposed	1,080,000	0.000
HAP SENG CONSOLIDATED BERHAD	08-Mar-2022	Disposed	1,080,000	0.000
GEK POH (HOLDINGS) SDN BHD	07-Mar-2022	Disposed	1,080,500	0.000
TAN SRI DATUK SERI PANGLIMA LAU CHO KUN @ LAU YU CHAK	07-Mar-2022	Disposed	1,080,500	0.000
EMPLOYEES PROVIDENT FUND BOARD ["EPF"]	07-Mar-2022	Disposed	3,791,300

EPF FOR WHATEVER REASON HAS SOLD AND SOLD DOWN HS PLANT TILL IT IS NO LONGER SUBSTANTIAL HOLDER OF HS PLANT

See one more time

Anythoing wrong with Hs Plant?

No. Nothing wrong. EPF Also sold down Ijmplant around Rm1.86 when we started buying. And KLK took private Ijmplant at Rm3.10

So there was nothing wrong with IjmPlant as well

And EPF also Sold down Tsh Resources as well

See

EMPLOYEES PROVIDENT FUND BOARD	17-Feb-2022	Notice of Person Ceasing	2,291,700	0.000
EMPLOYEES PROVIDENT FUND BOARD	16-Feb-2022	Disposed	644,200	0.000
EMPLOYEES PROVIDENT FUND BOARD	15-Feb-2022	Disposed	4,300,000	0.000
EMPLOYEES PROVIDENT FUND BOARD	14-Feb-2022	Disposed	1,200,000	0.000
EMPLOYEES PROVIDENT FUND BOARD	11-Feb-2022	Disposed	4,000,000	0.000
EMPLOYEES PROVIDENT FUND BOARD	10-Feb-2022	Disposed	17,100	0.000
EMPLOYEES PROVIDENT FUND BOARD	09-Feb-2022	Disposed	426,000	0.000
EMPLOYEES PROVIDENT FUND BOARD	08-Feb-2022	Disposed	141,500	0.000
EMPLOYEES PROVIDENT FUND BOARD	07-Feb-2022	Disposed	1,761,300

On Feb 17th 2022 EPF Sold until it no longer in substantial shareholder of TSH PLant

A check with the price of TSH traded on 17th February 2022 shows it opened at Rm1.31 and closed at Rm1.34

So in spite of Epf selling tSH closed at Rm1.34 on that day

After EPf sold TSH Boss Kelvin bought substantial amount of TSH

See

TAN AIK PEN	04-Mar-2022	Acquired	200,000	0.000
TAN AIK PEN	03-Mar-2022	Acquired	1,000,000	0.000
TAN AIK PEN	02-Mar-2022	Acquired	1,500,000	0.000
TAN AIK PEN	28-Feb-2022	Acquired	2,500,000	0.000
TAN AIK PEN	25-Feb-2022	Acquired	2,000,000	0.000
EMPLOYEES PROVIDENT FUND BOARD	17-Feb-2022	Notice of Person Ceasing	2,291,700	0.000

And TSH closed at Rm1.63 today on March 16th 2022 (29 sen higher than Rm1.34 on 17th Feb 2022 after EPF no longer in substantial holder of TSH

From these examples we SEE that Epf sold down IjmPlant & Tsh Resources did not impede its bullish UPTREND

SO WILL BE HS PLANT ONCE EPF FINISHED DISPOSAL ALL 

Let's go to the next Point

1) HS PLANT IS 100% PURE UPSTREAM PALM OIL

From Annual Report of HS PLANT We Noticed that HS PLANT Has About 100,000 Acres of Pure Palm oil in Sabah

With FFB & CPO Prices at Record High of Rm6,000 to Rm7,000 a ton HS PLANT STANDS OUT

2) AND BEST OF ALL HS PLANT SELLS "SPOT" 

That means it takes its sweet time to harvest & sell FFB & CPO At the Highest Price in Real Time

Why so?

Answer: Because HS Plant has no borrowing and as such no banking institution chase Hs Plant for assured payment by "Forward Sale" So many have sold forward at lower "Lock-in" prices, only to see with shock & awe that Cpo prices kept going up and up & did not reap the highest prices.

Fortunately, HS PLANT Has the Luxury of Time to SELL SPOT AT THE HIGHEST PRICES

3) Now we Come to the 3rd Most Important Factor (Refer to Hs Plant Annual Report

Like Bplant - Hs Plant also got the Dividend Policy of giving out 60% dividend out of profit

Latest qtr Hs Plant gave an exceptional 15.5 sen profit

See

This Qtr HS PLANT Earned 11.79 sen

But gave out Dividend of 15.5 sen

That means Hs Plant has given out all its earning of 11.79 sen PLUS another 3.71 sen from its Savings Acc

How come?

If we see the FD & SAvings Acc of Hs Plant it has another 52.21 sen Cash in FD & Savings Acc combined

Plus with CPO Prices at World Record Hs Plant can afford to pay out Good Dividend

If we just use the very basic 60% dividend from Profit Formula as Stated by HS PLANT BOD (Board of Directors)

Then all things being equal (If Harvest of FFB lesser but Cpo prices up so much more)

We can safely assume that in May, Aug & Nov 2022 qtrs Hs Plant could should at least 11.79 sen profit

Annualised will be 11.79 x 4

= 47.16 sen profit a year

And if 60% dividend then

47.16 X .6

= 28.29 sen

HS PLANT Price Today Rm2.49

At 28.29 sen dividend that means 28.29 divides by Rm2.49

= 11.3%

And Hs Plant could easily increase its dividend payout as Cpo prices are at world record Plus it has still 52.21 sen in Cash

In future months yet ahead many will be shocked by the rise of Cooking oil & over 50% products in Supermarket due to very high food inflation

FD rate at 1.75% in Banks will look dismal if we do not protect our capital by the ravages of high inflation yet to come

WARMEST REGARDS

Calvin Tan

Republic of Singapore

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