Hi guys

Results for Palm oil, Old & New Tech & Gloves are out this Qtr

Let us Compare their Results & Prices

1) TSH RESOURCES PALM OIL0

we exoected a qtr from 3.99 sen left over from SAbah land sale 9BUT IT CAME IN AT 2.25 SEN

FFB UP QoQ but Down YoY due to replating

Cpo at record Rm6552 but there was impairments & high levy and loss through currency exchange

But all is not loss

In Balance sheet Net Borrowings of over Rm1 Billions now pared down to just above Rm800 Millions only

Sale p=of Bulugan lands for Cash Rm731.09 Millions 2/3 in 

And  Rm550 Millions will be used to further pare down loans. Plus TSH has Rm270 Cash makes it Rm820 Millions which means that all Debts will be finally cleared & TSH will be Debt free and able to start giving good dividends

Let's see

This Qtr earned 4.15 sen

Annualised 4.15 x 4 = 16.6 sem 

Note: We did not use last qtr 6.99 sen profit or else earnings will be higher & certainly if we included Nov 22 sen profit from staggered Bulugan land profit earnings will be much much higher

16.6 SEN WITH CURRENT PRICE OF TSH AT RM1.09

IS A YIELD OF 15.2 % OR MORE THAN 6x BANK FD AT 2.5%

P/E ONLY 6.56

IT TAKES ONLY 6.56 YEARS TO DOUBLE YOUR MONEY

2) FRONTKEN OLD TECH

FRONTKEN EARNED 2.05 SEN

ANNUALISED 2.05 SEN X 4 = 8.2 SEN

FRONTKEN PRICE RM2.68

ITS YIELD IS 3%

P/E IS 32.68

NOT CHEAP

3. SFP TECH (NEW TECH)

SFP TECH EARNED 0.81 SEN

ANNUALISED 0.81 X 4 = 3.24 SEN

PRICE IS RM1.10 

YIELD IS 2.9%

P/E IS 37.93

IT WILL TAKE 37.93 YEARS TO DOUBLE YOUR MONEY

4. SUPERMAX GLOVE

Supermax earned 1.25 sen this qtr 

Annualised 1.25x4 = 5 sen

At 77.5 sen

The yield is 6.4 sen

or P/E 12.10

Supermax  has a cash hoard of Rm3 Billions which is worth Rm1.13 Cash per share

At current Value Supermax is seling below Cash

Only problem going forward is due to fierce competition due to rampant overproduction

However Supermax has commissioned several new glove lines in Malaysia and an investment of USD350 Millions (Rm1.54 Billions

over over Rm2 Billions in Total Glove expansion

From above we learnt that in just one year of EXTRAORDINARY GAINS SUPERMAX COULD MAKE BILLIONS

However it atttracted fierce competition from China New Glove players due to little barrier to entry

If can Supermax should halt expansion and conserve its Cash as Glove downturn could be prolonged

From above we can see that Palm oil currently earns the best and should CPO maintain above Rm4000 a ton Palm Oil Companies, too, can be Cash Hoard like Gloves but Palm oil has the added Barrier of HIGH TIME entry

It only takes 6 to 9 months  to set up New Glove Factories BUT IT WILL TAKE 6 TO 8 YEARS TO START A NEW PALM OIL PLANTATION                     

Further notes from TSH Qtr Reports & Comments

We quote from posted comments

Just read the balance sheet of TSH RESOURCES

VERY HEALTHY

BORROWINGS HAVE BEEN PARED DOWN BY OVER RM250 MILLIONS TO JUST ABOVE RM800 MILLIONS LEFT

CASH OVER RM250 MILLIONS PLUS RM550 MILLIONS OUT OF RM731.09 MILLIONS FROM BULUGAN LAND SALE WILL ADD UP TO OVER RM800 MILLIONS TO NEGATE ALL DEBTS

IN TWO OR MORE QTRS TSH WILL BE DEBT FREE AND ABLE TO START GIVING EITHER DIVIDEND OR CASH PAYOUT

See SANGUNIE COMMENTS EXTRACTED FROM QTR REPORT COMMENTS

Commentary on the prospects (refer Qtrly report)

CPO price has fallen sharply since May 2022 following Indonesia’s decision to remove the ban
on palm oil export and market concern over rising palm oil stockpiles. However, it appears to
have stabilise in recent times and is currently hovering at around RM4,000+ per MT. It is
anticipated that the CPO price will remain supported at current levels on the back of supply
concerns arising from the prolonged Russia-Ukraine conflict and softer production outlook for
soybean due to the return of La Nina in late 2022 and early 2023. Barring any unforeseen
circumstances, the Group is optimistic of achieving satisfactory performance for year 2022.
The Board also remains optimistic on the long term prospect of the palm oil industry.
Restrained hectarage growth in oil palm planting over the last few years due to RSPO
regulations and Indonesian Government’s moratorium on deforestation will have an impact over
the global palm oil supply. Global population and per capita income growth as well as the many
health qualities of palm oil are expected to drive greater demand for palm products. This augurs
well for the Group as palm products segment will remain the core contributor to the Group [rofit

TSh now Rm1.09

Our One Year Target Price Rm2.70

Best & Warmest regards

Calvin Tan

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