THE INVESTMENT APPROACH OF CALVIN TAN

PELIKAN (5231) : AN ASSET PLAY NOW GIVING OUT 75 CASH PAYOUT: CHUN CHUN BUY CALL: CALVIN TAN

calvintaneng
Publish date: Fri, 15 Dec 2023, 07:39 AM
calvintaneng
0 1,788
Hi Guys,

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

Dear Friends of i3 Forum,

A happy day indeed for holders of Pelikan as it is giving out a very generous 75 sen Cash Payout after another Asset Disposal


We posted two articles on Pelikan


And here they are 

PELIKAN (5231) An Asset Play now unlocking its Value by Asset Disposal and giving out 20 Sen Special Dividend, Calvin Tan

calvintaneng
0 1,748

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

Hi Guys,

calvintaneng
0 1,748

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

Hi Guys,

Publish date: Thu, 21 Oct 2021, 09:17 PM

Dear Friends of i3 Forum,


Today Pelikan announced an EGM to vote for An Asset sale

See

 

 
 

 

Please refer attachment below.

 

Let us take a look

NOTICE IS HEREBY GIVEN that the Extraordinary General Meeting (“EGM”) of Pelikan International
Corporation Berhad (“PICB” or the “Company”) will be conducted fully virtual basis and entirely
via Remote Participation and Voting facilities provided by Tricor Investor & Issuing House Services
Sdn Bhd via TIIH Online website at https://tiih.online on Friday , 5 November 2021 at 3.00 p.m. for
the purpose of considering, and, if thought fit, passing the following ordinary resolution, with or
without any modifications:-
ORDINARY RESOLUTION
PROPOSED DISPOSAL BY PELIKAN GROUP GMBH (“PGG”), A SUBSIDIARY OF PICB, OF
ITS LOGISTICS CENTRE LOCATED AT STRAßE DER EINHEIT 142-148, 14621 FALKENSEE,
GERMANY FOR A CONSIDERATION OF EUR81,000,000 TO BE SATISFIED ENTIRELY IN CASH
(“PROPOSED DISPOSAL”)  AND THE SUBSEQUENT PROPOSED LEASE OF CERTAIN PARTS
OF THE SAID PROPERTY BY PGG (“PROPOSED LEASE”) (“COLLECTIVELY REFERRED TO
AS THE “PROPOSALS”)
“THAT subject to the approvals being obtained from all relevant authorities and/or parties, approval
be and is hereby given to PGG, a subsidiary of the Company, to dispose of the freehold land and
building located at Straße der Einheit 142-148, 14621 Falkensee, Germany (“Property”) to HE4
Falkensee 1 S.à r.l. and HE4 Falkensee 2 S.à r.l. (collectively, the “Purchasers”) for a total cash
consideration of EUR81,000,000, subject to the terms and conditions as stipulated in the Sale and
Purchase Agreement dated 7 July 2021 entered into between PGG and the Purchasers;
AND further, subject to the impleme
 
PELIKEN IS SELLING A FREEHOLD LAND WITH LOGISTIC ASSETS FOR EUR81,000,000
 
 
This was first proposed on July 8 2021
 
See the details
 
2.9 Expected Gain Arising from the Proposed Disposal
Based on PICB’s audited consolidated financial statements for the FYE 2020, PICB and its subsidiaries (“PICB Group” or the
“Group”) is expected to realise an estimated one-off gain of RM184.83 million in relation to the Proposed Disposal as follows:-
 
 
Disposal Consideration
399,330,000
Less: Audited NBV as at 31 December 2020
(180,997,000)
Estimated expenses for the Proposed Disposal
(12,800,000)
Estimated tax expenses
(20,706,000)
 
Estimated gain of the Proposed Disposal
Rm184,827,000
 
NOTE; ASSETBOOK VALUE: RM180.997 MILLIONS
PROFIT FROM DISPOSAL: RM184.827 MILLIONS WHICH MEAN PRICE HAS DOUBLED SINCE ITS PURCHASE.
 
 
From the disposal Peliken will get a  CASH OF RM399,330,000
 
How much per share value
 
Look at the last qtr result & from there we get a short - cut calculation of the Cash proceeds
 
 

SUMMARY OF KEY FINANCIAL INFORMATION

30 Jun 2021


INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Jun 2021
30 Jun 2020
30 Jun 2021
30 Jun 2020
$$'000
$$'000
$$'000
$$'000
1
Revenue
287,326
255,412
489,736
462,690
2
Profit/(loss) before tax
20,848
20,590
11,458
14,304
3
Profit/(loss) for the period
18,027
20,172
7,148
11,317
4
Profit/(loss) attributable to ordinary equity holders of the parent
17,948
20,096
5,223
11,762
5
Basic earnings/(loss) per share (Subunit)
2.98
3.33
0.87
1.95
6
Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00


AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7
Net assets per share attributable to ordinary equity holders of the parent ($$)
0.7700
0.7600
 
Above results showed Peliken made Rm17.948 Millions which is equal to 2.98 sen a share
 
So 

RM399,330,000 divides by Rm17,948,000 multiply by 2.98

= 22.249 sen x 2.98

= 66.30 sen CASH a Share

 

Today Peliken closed at 47.5 sen

So at 66.30 its Cash 1.39 times share price

 

Estimated net profit from disposl is 

See

Estimated gain of the Proposed Disposal
Rm184,827,000
 
= 30.68 sen
 
This Net Gain of 30.68 sen will be reported in the Qtr when Cash is Received
 
 
UTILISATION OF PROCEEDS
Subsequent to the Announcement, the Board wishes to clarify that the total proceeds arising from the Proposed Disposal of EUR81.0 million (equivalent to approximately RM399.33 million) are proposed to be utilised/varied as follows:-
Proposed utilisation
Expected timeframe
for utilisation upon completion
of Proposed Disposal
 
Repayment of bank borrowings (a)
Within 3 months
RM200,000,000
 
Working capital requirements (b)
Within 12 months
RM41,290,000
 
Special dividend (c)
Within 6 months
RM120,640,000
 
Internal reorganisation related cost (d)
Within 12 months
RM24,600
 
Estimated expenses (e)
Within 3 months
RM12,800,000
 
Total proceeds
RM399,330,000
 
Note: RM120,640,000 will be given out as a Special Dividend
 
How much per share?
 
Again the formula is
 
RM120,640,000 divides by Rm17,948,000 x 2.98
 
= 6.72 x 2.98
 
= 20 Sen Per Share
 
 Pelikan will be paying out 20 Sen as Special Dividend
 
Now Peliken will also use Rm200 Millions from sale proceeds to pare down borrowings. In future this bank interest saving will show up as better profits
 
Let's take another look at Peliken latest result below
 
 
 
 
 
This qtr earns 2.98 sen
 
Annualized 2.98 x 4 
 
= 11.92
 
Price is 47.5 sen
 
P/E = 47.5 / 11.92
 
= 3.98
 
So is Pelikan Annualised forward P/E only 3.98?
 
The honest answer is a no.
 
Why not?
 
Because Peliken's business of School stationary is seasonal. It depends on School reopening when Students will buy more pens and stationary. So a more appropriate P/E should be around 10.
 
 
 
With this Asset sale & paring down of debt will Peliken show further improvement in its business?
 
 
In any case the Asset disposal is not a One Off gain only. Its Net Asset Value is 77 sen which mean that there is another possibility Pelikan could dispose more assets to unlock value & reward share holders.
 
Peliken now 47.5 sen
 
Upside one year target price is Rm1.00  (or its revised NAV of 77 sen to Rm1.00)
 
Note: this is based on its NAV (revised book value)
Its business if can improve will be added bonus
 
 
Best Regards
 
Calvin Tan
 
Please buy or sell after doing your own due diligence or consult your remisier/Fund Manager
 
 
 
 
 
Please note:
 
A MUCH BETTER BUY NOW WOULD BE 2ND & 3RD LINER OIL PALM SHARES AS CPO OVER RM5,200 WILL SEE FANTASTIC TURNAROUND FOR ALL OIL PALM RELATED STOCKS

SUMMARY OF KEY FINANCIAL INFORMATION

30 Jun 2021


INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Jun 2021
30 Jun 2020
30 Jun 2021
30 Jun 2020
$$'000
$$'000
$$'000
$$'000
1
Revenue
287,326
255,412
489,736
462,690
2
Profit/(loss) before tax
20,848
20,590
11,458
14,304
3
Profit/(loss) for the period
18,027
20,172
7,148
11,317
4
Profit/(loss) attributable to ordinary equity holders of the parent
17,948
20,096
5,223
11,762
5
Basic earnings/(loss) per share (Subunit)
2.98
3.33
0.87
1.95
6
Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00


AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7
Net assets per share attributable to ordinary equity holders of the parent ($$)
0.7700
0.7600
PELIKAN INTERNATIONAL CORPORATION BERHAD
Type of Meeting
Extraordinary
Indicator
Notice of Meeting
Description
Pelikan International Corporation Berhad ("PICB")

- Notice of the Extraordinary General Meeting to be conducted on fully virtual basis and entirely via Remote Participation and Voting facilities

Date of Meeting
05 Nov 2021
Time
03:00 PM
Venue(s)
Online Meeting Platform via TIIH Online website at https://tiih.online
provided by Tricor Investor & Issuing House Services Sdn Bhd

Malaysia

 
Date of General Meeting Record of Depositors
27 Oct 2021

Resolutions


1. Ordinary Resolution

Description
Proposed disposal by Pelikan Group GmbH, a subsidiary of PICB, of its logistics centre located at Straße Der Einheit 142-148, 14621 Falkensee, Germany for a consideration of EUR81,000,000 to be satisfied entirely in cash and the subsequent proposed lease of parts of the property by Pelikan Group GmbH from HE4 Falkensee 2 S.àr.l.
Shareholder’s Action
For Voting


Updates on December 15th 2023


Pelikan was 47.5 sen

After deducting 20 sen 1st cash pay out

it was only 27.5 sen


Current price of Pelikan is 91 sen

see


PELIKAN INT.CORPORATION BHD

KLSE (MYR): PELIKAN (5231)

0.91


So Pelikan is up 230%

Plus another 75 sen dividend on the way

This shows ASSET PLAY of Value Investing is one of the successful approach to Investment


See another post


PELIKAN: A BIRD IN HAND BETTER THAN 2 IN THE BUSH> GET CASH BETTER THAN MANY WITH RIGHTS ISSUE ASKING FOR MONEY, Calvin Tan

calvintaneng

Hi Guys,

calvintaneng
Publish date: Wed, 27 Oct 2021, 04:42 AM

Dear Friends,

PELIKAN will call for EGM on Nov 5 2021 to vote for Asset Disposal to Sell Lands & Assets & then give A Special Dividend of 20 sen

The salient factors of the Asset Disposal

1) It will get about Rm399 Millions which translate to 66 sen a share

2) Of these about 30 sen is Profit (About 100% profit from Purchase) This shows that Pelikan not only derive its profit from selling stationary - it is also sitting on Assets which have appreciated in Value (That is why Calvin like Oil palm Stocks: There is a double edged growth from Palm oil business as well as the precious lands on which oil palms are planted. They will appreciate over the years.

3) And out of the Rm399 Millions Pelikan will use Rm200 Millions to pare down debts

4) About Rm120 Millions or 20 sen will be given out as "Special Dividend"

Isn't this much better than many who ask you for money by "rights issue" to raise capital for business expansion?

In Pelikan case you are receiving money. And there is still a surplus 10 sen for more Business enterprize.

 

5) Both Pelikan & those who gave "Rights Issue" are looking to expand business enterprize.

In Peilkan case they get money from Assets of Value "Already in Hand" to make more money out there. For those companies that gave out "Rights Issue" to ask you for money also got the intention to make more money out there.

But Pelikan still got 4 other Assets of Value to dispose and unlock value (While others are looking to get value out there)

So Pelikan is like a bird already in hand while others might be still looking for "2 birds" in the bush, so to say

 

It is all Right to Sell Assets to unlock needed capital to pare down bank loans, to get capital for business expansion & also to give out "Surplus Cash" as a reward to shareholders.

That was what Datuk Hilmey of Htpadu did. Htpadu sold its HQ Building to give out "Special Dividends". We saw Boss of Htpadu bought & so we followed him buy Htpadu around 70 sen. Today Htpadu is Rm1.25. So don't chase Htpadu.

 

And just as Datuk Hilmey of Htpadu bought in those days WE SEE TODAY THAT PELIKAN INSIDER BOSS HAS BEEN BUYING PELIKAN SHARES

See

 

PELIKAN: A BIRD IN HAND IS BETTER THAN TWO IN THE BUSH

Pelikan in the harbour of Pafos, South CYPRUS, Europe Stock Photo - Alamy

 

 

Pelikan – Writing Instruments, Fountain pens, Printer supplies & Office  products

 

 

 

Warm regards

Calvin Tan

Singapore

 

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

PELIKAN: A BIRD IN HAND IS BETTER THAN TWO IN THE BUSH

Pelikan in the harbour of Pafos, South CYPRUS, Europe Stock Photo - Alamy


Pelikan – Writing Instruments, Fountain pens, Printer supplies & Office  products

 

 

 

Warm regards

Calvin Tan

Singapore

 

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


ADDITIONAL COMMENTS ON DECEMBER 15 2023


WE ALREADY STATED FOLLOWING INSIDER/DIRECTOR BUY LONG BEFORE ANY CORPORATE EXCERCISE SURFACES IS THE BEST


PELIKAN INSIDER BOUGHT SEE

He bought from 37 sen to the low of 25 sen
At 25 sen it was so bombed out

Now he has received 20 sen cash payout
Coming soon another 75 sen cash payout

All these are Due to ASSET DISPOSAL & CASH PAYOUT
(Not from normal business operation at all)

These examples are repeated in Bplant

And later in THplant & Tsh Resources as well

Best regards,

Calvin Tan

Please buy or sell after doing your own due diligence or Consult your remisier or Fund Manager



Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. - John Templeton


THE BEST BUY IS TO FIND THE MOST HATED VALUE STOCKS WHICH INSIDERS/DIRECTORS HAVE LOADED IN MAXIMUM PESSIMISM
THEN HOLD TIGHTLY WITH THEM TILL VALUE EMERGE ONE FINE DAY

AND WHEN PEOPLE FINALLY SEE VALUE & CHASED THEM THEN YOU MUST SELL

CONTRARIAN (5%) INVESTORS MAKE MONIES WHILE HOT STOCK CHASERS (95%) WILL EVENTUALLY LOSE MONEY

This Was; and Is and Will Be Forever in the Stock Market







More articles on THE INVESTMENT APPROACH OF CALVIN TAN
Discussions
Be the first to like this. Showing 2 of 2 comments

calvintaneng

The Best is to buy when there is maximum pessimism when every body gives up

And certainly the best time to sell is during euphoria when People Chase It; Newspapers highlight it; Analysts strongly recommend it

5% who bought value stock in Fear better than 95% buying during peak euphoria and will live to regret staying in penthouses

2023-12-15 07:55

Naz90

did pelikan give out capital repayment as today the price change

2023-12-28 12:13

Post a Comment