Dear friends of i3 Forum,

HS PLANT is one of those Plantation Shares you can buy and then hold and sleep well at night without bothering to check on it. 

Why so?

These are Some Very Strong Reasons

1. HS PLANT IS TOTALLY DEBT FREE. 

A Company with no borrowings cannot go bankrupt

2. IT HAS HIGH NET CASH

Refer to Bursa Hs Plant latest announcement

Money market deposits......Rm 310,801,000

Cash and cash equivalents Rm169,714,000

What is Money Market Deposit?

See

A short term deposit product which earns you interest at an agreed tenor and rate based on the sum of money deposited.

So Hs Plant has wisely out surplus cash into a Bank deposit product which earns a higher interest that Savings A/C

So the Total Cash is Rm310,801,000 & Rm169,714,000

= Rm480,515, 000

60.12 sen net cash

YES! Hs Plant has Net Cash of 60.12 sen (About Rm480.5 Million)

And USA just raised its Fed fund rate from 5.25% to 5.5% which is Good For Cash Rich Company like Hs Plant

3. HS PLANT has a Dividend Policy of giving out 60% of Profit as Dividends

So far so good

See Hs Plant Dividend History

Since Listing Day One Hs Plant has been giving Dividends Year after Year without fail.

Hs Plant was a spin off from Hap Seng Consolidated

As you can SEE the historic best year was in 2008 when Hs Plant gave a total of 15 sen dividend

This was Superseded by year 2022

when it gave out a total of 20.5 sen dividend 

And this year it already gave out 7 sen dividend

Look at the dividend dates again

Hs Plant usually gave dividend  in February month and in the month of August

August?

Yes, only few more days will be August 2023 and with Cash in hand 60.12 sen plus 3 more months of April to June 2023 cash inflow can we at least expect another 10 sen dividend?

That will be 17 sen or at Rm1.98 it is 8.5% dividend yield (this is more than double any Bank FD rate in Malaysia)

Now above 3 points are very simplistic as anyone with some effort can compile and give the same figures

There are some highlights not mentioned but we can certainly trace elsewhere

4, STOCK PERFORMACE GUIDE (Last Edition Sept 2015) By Dynaquest 

gave Hs Plant (page 364)

Alman's Z-score at 6.26 (which means very high safety)

For IjmPlant the Alman's Z-score is only 3.12 (less than half of Hs Plant)

That means that Hs Plant's safety of invested capital is superior to Ijm Plant

5. HAP SENG CONSOLIDATED FINANCIALLY CHALLENGED POSITION 

As we know Boustead was in trouble with high debt it has been taken private by LTAT . Plus Tok Mat hinted Bplant's Gold mine land too valuable for planting and they might unlock value

So will Hap Seng Con cash out by selling Hs Plant to highest bidder like Ijm Corp sold Ijmplant to KLK?

Or will Hap Seng Con cause more dividend payout like what Boustead did with Bplant?

All the above are possibilities

For now Shareholders of Hs Plant are content in getting good dividends from both High Cpo Prices & Lower Fertilizer cost

Fertilizer?

Yes, Hs Plant gets its timely store of Fertilizer from Hap Seng Consolidated

See

Hap Seng Fertilizers Sdn Bhd

Jalan P. Ramlee,

50250 Kuala Lumpur,

Malaysia.

6. ALL OF HS PLANT PALM OIL ESTATES ARE LOCATED IN SABAH

And bought before and after year 2007 

Its lands will also see long term appreciation as Pan Borneo highway will reach it from the East

and Nusantara, East Kalimantan Land Boom from the South will cause long term land price appreciation

Meanwhile, Hs Plant owns lands in the Palm Oil Belt of Sabah which is among the most fertile region of Sabah

With good rainfall, plenty of sunshine, good infrar network for palm oil and with 4 Palm Oil Mills Plus Sell Spot at highest price (Hs Plant having no debt is not constrained to sell ahead to pay debt so it can take its time to sell at best prices)

7. THAT'S IT. HS PLANT THOUGH DULL AND UNEXCITING WILL GROW OUR INVESTMENTS SLOWLY & STEADILY

But who Knows?'

Like Tmakmur, Kulim, Kwantas, IjmPlant and "Bplant?" HS PLANT could also be a candidate to a Takeover privatisation

Kindest regards

Calvin Tan

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

Description:

Hap Seng Plantations Holdings Bhd is a Malaysia based palm oil plantation company. It is engaged in the planting and milling operations. The company operates in the palm oil industry where it grows oil palms in its estates, harvests and processes fresh fruit bunches into crude palm oil in its own mills and then sells it. It produces palm oil in Sabah with a total area of approximately 40,279 hectares located entirely in Sabah, Malaysia. The company operates four mills namely, Jeroco 1 palm oil mill, Jeroco 2 palm oil mill, Bukit Mas palm oil mill, and Tomanggong palm oil mill. The group has operations in Singapore and Malaysia of which key revenue is generated from Malaysia. Majority of the group sales were local delivered sales to refiners within Malaysia.

FURTHER NOTE;

True to his Research DYNAQUEST's Boss Dr Neoh Soon Kean has his own private Fund in Top 30 Holders of Hs Plant

Coming in at Top 28th position

28. Neoh Choo Ee & Company, Sdn. Berhad 1,500,000

Dr. Neoh has 1.5 Million Hs Plant Shares

Others are

Public Mutual got 3 Funds

3rd, 15th & 21st

Eastspring also in 3 places

Others are Insurance Cos & both Local & Foreign Funds in Top 30 of Hs Plant

More than 80% of Hs Plant are held by Hap Seng Consolidated & Funds