THE INVESTMENT APPROACH OF CALVIN TAN

BPLANT (5254) A STARTLING REVELATION BY TOK MAT ( There are assets such as those of ‘planting trees on a gold mine’) Calvin Tan

calvintaneng
Publish date: Sat, 15 Jul 2023, 11:03 PM
calvintaneng
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Hi Guys,

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

Dear friends of i3 Forum (Especially to those who own shares in Bplant & other Palm oil Company shares)


See this Full Reported News


13 Jul 2023, 01:24 pm





LTAT should not be sentimental in assets review, says Tok Mat
13 Jul 2023, 01:24 pm

Asked if the restructuring would involve divesting Boustead Plantation Bhd or Boustead Petroleum Marketing Sdn Bhd (BHPetrol), Mohamad Hasan said “in business, what is important is that we make money; we do business to get returns”. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (July 13): Lembaga Tabung Angkatan Tentera (LTAT) should not be sentimental towards businesses under its portfolio in a restructuring to unlock value pursuant to the newly-announced multi-year strategy, said Minister of Defence Datuk Seri Mohamad Hasan. 

“In the corporate world, survival of the fittest is a ‘dog eat dog’ business, so there is no such thing as mercy or whatever it is. That’s why I said, put our sentiment aside when do business,” he told reporters after attending the launch of the Sustainable25 strategy here on Thursday (July 13).

“We cannot say we are sentimental towards something, or this is our ‘flagship’. There is no such thing as flagship, it is survival. So, how do we survive such challenging times, with the interest rate differential? US interest is 5% [versus] our 3% and so on. So how do we manage the situation, so that we remain relevant,” he said.



Asked if the restructuring would involve divesting Boustead Plantation Bhd or Boustead Petroleum Marketing Sdn Bhd (BHPetrol), Tok Mat, as he is fondly known, said “in business, what is important is that we make money; we do business to get returns”.

“There is no point in retaining business if you are going to lose money. It doesn’t mean that the privatisation of Boustead [Holdings Bhd], that’s the end of it. We want to re-position ourselves.

“The important thing is to look at our assets. There are assets such as those of ‘planting trees on a gold mine, so we have to unlock that because this is the process for adding value,” he added.

Boustead Holdings was recently delisted under a RM703.2 million or 85.5 sen per share privatisation deal by LTAT.

Tok Mat also said LTAT intends to re-list Boustead on the local stock exchange, upon completion of the Sustainable25 strategy.

“Maybe in two years’ time, we will relaunch ourselves with a fresh company and we can position ourselves. How can we remain happy when our shares are traded at 55 sen and our net asset value is at RM1.70? It doesn’t make sense, does it?

“So why should we remain a public company? Might as well you just pull back for a while but in the next two years, who knows? With all these restructuring processes, with this unlocked value of our asset taking place, we can relaunch ourselves with a new ‘missile’,” he said.

Apart from Boustead Holdings and Boustead Plantation, which LTAT owns an 11% direct stake and a 57% indirect stake in respectively, the Armed Forces Fund Board is also a major shareholder in several other listed companies like Affin Bank Bhd (47%), Boustead Heavy Industries Corp Bhd (73%), and Pharmaniaga Bhd (60%).

Read more:

LTAT aims for RM15b AUM, lowering Boustead exposure through 2025 

LTAT almost lost control of Pharmaniaga due to discounted bid by certain parties, says Tok Mat

Pharmaniaga closes flat amid elevated trading after seven-year extension of govt concession

Pharmaniaga gets seven-year concession to provide medical supply logistics services to MOH 

Boustead said to be disposing of plantation arm 

Edited By Surin Murugiah




Read again

“The important thing is to look at our assets. There are assets such as those of ‘planting trees on a gold mine, so we have to unlock that because this is the process for adding value,” he added.


Calvin comments:


Assets such as those of 'planting trees on a gold mine'


Of all Boustead companies only Bplant got Palm Oil trees while others are involved with property, pharmaceutical products & bankings


Since the reference is ' PLANTING TREES ON GOLD MINE'


The emphasize is on "GOLD MINE" LANDS OWNED BY BOUSTEAD PLANTATION 


Read further

so we have to unlock that because this is the process for adding value,” he added.


How?


Some ways to unlock value are

a) SELL VALUABLE BPLANT LANDS JUST AS IT DID WITH SELLING KULAI YOUNG PALM OIL ESTATES TO YTL-POWER

b) OR SELL BPLANT SHARES LIKE IJM SOLD IJMPLANT TO KLK FOR RM3.10 PER SHARE (FROM RM1.86)


IN WHATEVER WAY YOU LOOK AT IT THERE WILL BE IMMENSE VALUE WHEN THESE COME INTO REALITIES OF VALUE-UNLOCKING


NOW WHAT IS SAID ABOUT BPLANT "PLANTING ON A GOLD MINE" IS ALSO TRUE ABOUT THPLANT, SIMEPLANT, IOI CORP, JTIASA, TSH RESOURCES, SOP, TAANN, HS PLANT, FGV AND OTHERS OWNING HUNDREDS OF THOUSANDS OF 'GOLD MINE LANDS' STILL AT OLD BOOK VALUE AS LOW AS RM3K  PER ACRE TO RM10K AN ACRE WHEN CURRENT PRICES {OF THOSE LANDS LOCATED NEAR CITIES/TOWNS & GROWTH ZONES) HAVE REACHED RM2OO,OOO TO RM2 MILLION PER ACRE OR EVEN MORE IN SOME PRIME PLACES


With Kind Regards

Calvin Tan


Please buy or sell after doing your own due diligence or consult your Remisier/Fund Manager Or Real Estate Valuer




Discussions
1 person likes this. Showing 9 of 9 comments

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

I am not too sure if calvintaneng owns an oil palm estate or has ever owned an oil palm estate.

Those who are owners of oil palm estates for generations will realise the wealth of their family from owning these estates can be grown in so many ways:

1. from its regular income
2. from the appreciation of the land
3. from proximity of their land to development after many years
4. from developing their land through conversion to residential, commercial or industrial projects.
5. from (very occasionally) selling a portion of their land to reinvest into another with higher potential for greater returns.

If you have managed the asset well, especially free from leverage or excessive leverage, most plantation owners are happy to just hold forever.

2023-07-16 11:15

Sslee

Bplant as plantation company is not managing it plantation well as it' FFB yield has been dropping year after year. Old tree and need capital investment for replanting.

The only bright spot is Bplant plantation in Kedah, Penang, Perak, Selangor and Johor are freehold land that should value more than plantation.

On and off Bplant juat need to sell a piece of the valuable plantation land and report hundred million in disposal gain.

Without land disposal gain coming Q2 2023 result should be bad.

2023-07-16 11:30

calvintaneng

Palm oil companies' land values differ from one and another like

Rented land, Leasehold or Freehold

Located near Cities/ towns or in The Direction of Growth

Over time development will reach them and unlocking value depends on these

1. Palm oil sold as palm oil like Dutaland sold palm oil estates to Bplant in year 2017 for about Rm26,100 an acre

2. Bplant sold Kulai young land to Ytl power in year 2022 for Rm261,000 or 10 time more as it is for data centre

3. Jcorp paid Rm4.10 (from Rm2.50) to take Kulim private to build to Townships in Pengerang

Value increases as types of use change from agriculture to industries to Townships

2023-07-16 12:46

Johnchew5

Post removed.Why?

2023-07-17 06:51

Johnchew5

Post removed.Why?

2023-07-17 06:56

Johnchew5

Post removed.Why?

2023-07-17 07:05

Johnchew5

Hoho anyway I had been debated against Callvin on Bplant since 2020 , Production Output is decreasing lo , old tress is the Main Reason :


Hoho monthly peak season is ard May to Nov :


Bplant FFB


Apr2020 = 82849
May2020 = 86223
June2020 = 101309


July2020 = 89117
Aug2020 = 89318
Sept2020 = 95188


Oct2020 = 93334
Nov2020 = 81,866
Dec2020 = 72,491


Jan2021 = 60,574
Feb2021 = 55,196
March21 = 64,394


Apr2021 = 70,373
May2021 = 77,435
Jun2021 =



Apr2023 = 52,885
May2023 = 66,530
June2023 = 61,309

2023-07-17 07:07

calvintaneng

Happy morning all

The strength and prospect of a palm oil co comes from different inherent quality and management skill

1. Some are bestowed with large acreage in good location or in the direction of growth

Like Plus North south highway unlocked land value all along its route

For these lands they have become more valuable as housing or industries than plant

2. Then there are those in not so prime area but give very good yield

However, development like Ecrl rail and Pan Borneo highway will open up connectivity and will increase land value

3. Once a while some palm oil cos are taken private by other bigger and more efficient planters with their expertise and economy of scale

Like Golden Hope plant, Austral Enterprize and Guthrie taken private by Simedarby plant

Or Unico desa taken private by Ioi corp

And recently, Klk took private Ijmplant

Then there are those taken private for the change of use from palm oil to Townships

Like Tmakmur taken private by Pahang Royalty for KotaSas in Pahang

Kulim taken private by Jcorp for two new Townships in Pengerang

So over time all palm oil companies will keep growing organically with its underlying land value keep on appreciating

2023-07-17 08:58

calvintaneng

Note:
2nd half of 2023 will see temperature above normal and will impact oilseed production thus leading to much higher prices

This will propel Cpo prices

With Cpo production increasing at the same time the twin booster should lift up palm oil co profits for the next few qtrs

We can expect bumper dividends again for more years to come

2023-07-17 20:00

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