THE INVESTMENT APPROACH OF CALVIN TAN

THPLANT (5112) Why it is underperforming compared to Bplant? And what are its positives & negatives, Calvin Tan

calvintaneng
Publish date: Mon, 25 Dec 2023, 04:50 PM
calvintaneng
0 1,788
Hi Guys,

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

Dear friends of i3 Forum,

In response to our fellow i3 Forumer Xiaoeh we are posting this.

Many have wondered why Thplant share price languished at 49 sen when Bplant is up at Rm1.55

Both these stocks are in Eagle Group Top 10 Plantation Picks which are as follows:


1) TSH RESOURCES (Buy call Rm1.09)

2) BPLANT (Buy call 57 sen)

3) JTiasa (Buy call 63 sen)

4) THPLANT (Buy call 47 sen)

Others are Hs Plant, FGV, IOI Corp, Simedarby Plant, SOP & TAANN


All top 4 got over 200,000 Acres of Plantation lands

Now out of these Top 4 two have done well


Bplant is now being taken private by LTAT at Rm1.55

Jtiasa is up 46% to 92 sen

TSH Resources is down from Rm1.09 to 97 sen (Down by 11%)

THPLANT managed to eke out a tiny 2 sen gain


Since THPLANT & BPLANT are quite similar yet they have performed poles apart


Thplant has 240,000 acres while Bplant has 220,000 acres

By right Thplant has slightly bigger Plantation lands should do better but No. The current price shows it is overlooked & unloved

Why oh why?


These are the answers

BPLANT has been selling assets and giving out good dividends while THPLANT only give tiny dividends


See THPLANT dividend history


There were no dividends from Thplant for 3 years from 2009 to 2021

Last 2 years it only gave a combined dividends of 3 sen


Now see BPLANT



SINCE YEAR 2018 BPLANT FROM YEAR 2019 TILL NOW HAS GIVEN A TOTAL OF 12 DIVIDENDS TOTALLING 25.8 SEN


MR. MARKET BEING RESULT ORIENTATED WILL GRAVITATE TO BPLANT 25.8 SEN DIVIDEND MORE THAN THPLANT'S 3 SEN DIVIDEND

AS A RESULT BPLANT SHARE PRICES TRADE AT PREMIUM WHILE THPLANT TRADES AT DISCOUNT

NOW LTAT HAS FINALLY OFFERED RM1.55 TO TAKE BPLANT PRIVATE

(NOT FOR ITS EARNINGS BUT SOLELY FOR ITS VALUABLE LAND ASSETS)


SEE THE LAST QTR RESULT OF BPLANT WILL KNOW


SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2023

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2023
30 Sep 2022
30 Sep 2023
30 Sep 2022
$$'000
$$'000
$$'000
$$'000
1
Revenue
202,546
240,251
603,521
913,365
2
Profit/(loss) before tax
20,647
-2,089
27,919
619,076
3
Profit/(loss) for the period
13,924
-4,830
9,403
504,393
4
Profit/(loss) attributable to ordinary equity holders of the parent
15,216
-352
14,912
508,023
5
Basic earnings/(loss) per share (Subunit)
0.68
-0.02
0.67
22.68
6
Proposed/Declared dividend per share (Subunit)
0.00
1.10
1.00
11.15
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 ($$)
1.2900
1.3300


SEE BPLANT ONLY EARN LESS THAN 1 SEN MISERABLE PROFIT?

AT RM1.55 IT IS NOW ABOVE ITS BOOK VALUE OF RM1.29

NOTHING TO SHOUT ABOUT AT ALL

ITS VALUE IS IN ITS DEEP VALUE ASSETS WHICH WERE CONSTANTLY SOLD DOWN TO GET GENEROUS CASH PAYOUT FROM ITS LANDBANKS


NOW SEE THPLANT LATEST RESULT

SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2023

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2023
30 Sep 2022
30 Sep 2023
30 Sep 2022
$$'000
$$'000
$$'000
$$'000
1
Revenue
216,639
213,392
535,524
661,947
2
Profit/(loss) before tax
28,548
23,881
60,947
81,394
3
Profit/(loss) for the period
21,055
16,144
39,821
52,684
4
Profit/(loss) attributable to ordinary equity holders of the parent
17,553
14,367
34,339
45,721
5
Basic earnings/(loss) per share (Subunit)
1.50
1.13
2.37
4.68
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 ($$)
0.7900
0.7900


THPLANT EARNS 1.5 SEN PROFIT

WITH THIS LOW PRICE OF 49 SEN ANNUALISED IS 1.5 SEN X4 = 6 SEN

OR ITS YIELD IS 6/49

= 12.2% OR P/E 8.16


AT 49 SEN WITH NAV 79 SEN IT IS ALSO SELLING AT 37.9% DISCOUNT TO NTA WITH HIGH MARGIN OF SAFETY


FROM ABOVE WE SEE THPLANT IS UNDERVALUE IN COMPARISON TO BPLANT

HOWEVER, THPLANT'S SMALL DIVIDENDS DO NOT ATTRACT DIVIDEND FUNDS

ONLY DEEP VALUE LONG TERM HOLDERS WILL BUY THPLANT UNLESS

UNLESS?

UNLESS THERE IS A CORPORATE EXERCISE LIKE BPLANT


NOW WE SEE THE LATEST APPOINTMENT OF FORMER RHB BANK & RHB SECURITIES' BOSS RASHID HUSSEIN TO HELP TABUNG HAJI

PLUS IN THE APPOINTED LEADERSHIP THERE ARE THOSE WITH HIGH FINANCE EXPERIENCE AND LITERACY



Tuan Syed Hamadah bin Syed Othman

Malaysian | 52 Years Old | Male

Non-Independent Non-Executive Director

Date of Appointment:5 September 2023

Membership of Board Committees:Nil

Interest in Securities of the Company and its Subsidiaries:Nil

Present Directorship(s) in Other Public Companies:Nil

Tuan Syed Hamadah Syed Othman is a Fellow of the Faculty and Institute of Actuaries, United Kingdom and a Fellow of the Actuarial Society, Malaysia. He graduated with a Bachelor of Science in Actuarial Mathematics & Statistics from Heriot-Watt University, Edinburgh, United Kingdom in 1994 and obtained his Scottish Higher Education Certificate from Clydebank College, United Kingdom in 1990.

His past experience includes being the Chief Executive Officer of Retirement Fund Incorporated, consulting actuarist at Mercer Zainal Consulting Sdn. Bhd., technical analyst at Petronas Trading Corporation Sdn. Bhd. and as a Board Member of EDOTCO Sdn. Bhd.

On 6 May 2023, Tuan Syed Hamadah Syed Othman was appointed as the Group Managing Director & Chief Executive Officer of Lembaga Tabung Haji.

Currently, he is a Board Member of the Private Pension Administrator Malaysia and a Director and a Senior Partner of Actuarial Partners Consulting Sdn. Bhd.


WHAT IS ACTUARIST?


SEE


There are actuaries who work in other industries. Some large financial institutions, particularly lenders, employ actuaries to assess risks on loan products. Actuaries can be used to measure the potential for loss in an investment portfolio, which directly crosses over into the realm of financial analysis.

Financial analysts serve as experts for businesses and investors on a wide variety of subjects, such as economics, markets, investments, regulations, taxes, or corporate governance. The fundamental role of a financial analyst is to provide accurate information to others and to make recommendations based on that information. Corporations, private companies, public agencies, defense contractors, and nonprofits all employ financial analysts.


IN NOVEMBER 2021 WE POSTED THIS ARTICLE


THPLANT – A candidate for privatization?


November 29, 2021 By Calvin Tan Smart Investment

Dear Friends

From what we gathered so far there is a possibility after IjmPlant taken private by KLK – the next to be taken private could be THPLANT

And these are some factors

  1. Tabung Haji already owned 73.8% of Thplant shares. Only 26.2% shares are not owned by Tabung Haji

At the current price of today at 62 sen (Nov. 29th 2021)  the Total Value is only Rm143.6 Millions

 

At the latest quarter report Thplant has managed to refinance its current debt to long term loan. Plus it has raised a Cash hoard of Rm313 MILLIONS in just 9 months.

Why did Thplant wanted to raise up so much CASH?

Tabung Haji weighs taking palm oil

firm private

Lembaga Tabung Haji (LTH) has asked banks for proposals on the potential deal for the owner of palm oil and rubber plantations, one of the people said, asking not to be identified as the information is not public.

PETALING JAYA: Malaysia’s pilgrimage fund is considering taking its agricultural firm TH Plantations Bhd

Lembaga Tabung Haji (LTH) has asked banks for proposals on the potential deal for the owner of palm oil and rubber plantations, one of the people said, asking not to be identified as the information is not public.

Shares in TH Plantations have risen 4% in the year-to-date, giving it a market value of about RM526mil. LTH owns 73.8% of the company.

Discussions are in the early stages and LTH could decide not to proceed with the plan, the people said. LTH and TH Plantations did not respond to requests for comment.

Now one more interesting development

TH Plantations appoints new CEO, CFO

KUALA LUMPUR: TH Plantations Bhd has appointed Mohamed Zainurin Mohamed Zain as CEO and Shahrizal Suhainy as CFO of the group, effective Oct 1.

Mohamed Zainurin holds a Bachelor of Accountancy (Hons) degree from the University Utara Malaysia. He is a

Meanwhile, Shahrizal was the principal auditor with KPMG Desa Megat & Co with more than 12 years of experience in auditing and restructuring of companies for various industries.

He holds a Bachelor of Accountancy (Hons) degree from the MARA University of Technology. He is also a Chartered Accountant and a member of the Malaysian Institute of Accountants (MIA).

“The Board of Directors of THP welcome both Encik Mohamed Zainurin and Encik Shahrizal and hope that their appointments would propel THP’s momentum of its recovery plans.

NOTE: THESE NEW DIRECTORS HOLD ACCOUNTING DEGREES WITH AUDIT EXPERIENCE

So is privatization on the Card?


GO READ FULL ARTICLE AT

https://www.eaglevisioninvest.com/thplant-a-candidate-for-privatization/  


WILL THPLANT BE NEXT CANDIDATE FOR PRIVATISATION OR IT WILL STILL MOVE A SNAIL'S PACE?

SHOULD YOU INVEST OR NOT?

IT IS UP TO YOU TO DECIDE



NOW WE HAVE BOUGHT BOTH THPLANT & BPLANT BEFORE IN YEARS 2015/6/7 WHEN THEIR PRICES WERE RANGING BETWEEN RM1.00 TO RM1.20

BOTH TRADED ABOUT SAME PRICE RANGE OF RM1.00 TO RM1.20 THEN

AND BOTH GAVE OUT GOOD DIVIDENDS

FROM THERE THPANT HAS DROPPED WHILE BPLANT SURGED

BUT VALUE IS VALUE IRRESPECTIVE IF THPLANT OR BPLANT PAYS OUT DIVIDENDS

BOTH GOT HIGH VALUE IN ITS LAND ASSETS

THE ONES THAT UNLOCK ITS VALUE EARLIER WILL SEE EARLIER PRICE MOVEMENTS


SEE

BPLANT VERSUS THPLANT: THEIR DIVIDEND HISTORY & ITS RESUMPTION DUE TO HIGH INFLOW OF CASH BY VERY HIGH CPO PRICES, Calvin Tan

 A cow for its milk,

              Bees for their honey,

              And shares, by golly,

              For their dividend.

By Dr. Neoh Soon Kean of Dynaquest

 

 

 

 

Dear Friends of i3 Forum,

Today is 16th November 2021.

1 1/2 months have past for Last Qtr Result for October, November & December 2021 to be reported by February 2022

So far so good as Cpo prices still sustained above Rm5,200

 

See

 

And this week or next will be Results of July, August & September months when Cpo average prices were Rm4,417

 

THAT IS AN EXCEPTIONAL EARNINGS SEASON COMPARED TO THOSE BLEAK YEARS WHEN CPO FELL TO THE LOW OF RM1,700 PER TON

 

SO THIS AND NEXT WEEK WILL BE CELEBRATION TIME FOR ALL OIL PALM COMPANIES FOR A VERY VERY LONG TIME SINCE

 

WHAT WILL HAPPEN WITH SO MUCH CASH?

 

IN NATURE WE EQUATE CASH WITH WATER

 

IF A PLANT RECEIVES LOTS OF SUN SHINE, GOOD FERTIIZER & RAIN FALL OR WATER THEY WILL PRODUCE FRUIT

AND FRUIT IS EQUIVALENT TO DIVIDENDS

 

SEE

 

A Papaya Tree Stock Photo - Download Image Now - iStock

 

YES!

LET US SEE TWO: BPLANT VERSUS THPLANT DIVIDEND HISTORY

 

BPLANT

 

 

AS YOU CAN SEE FROM THE ABOVE WE HAVE GIVEN COLOR BANDS FOR EACH YEAR

 

FOR YEAR 2017 WHEN CPO PRICES WERE GOOD BPLANT GAVE DIVIDEND 4 TIMES PLUS ONE TIME IS SPECIAL DIVIDEND

 

FOR YEAR 2018 IT GAVE OUT 4 TIMES PLUS A BONUS ISSUE

 

 

THPLANT

 

FOR THPLANT IT GAVE LESSER TIMES BUT ITS DIVIDENDS ARE MORE SUBSTANTIAL

 

SEE IN YEAR 2008

 

IT GAVE OUT 22.1 SEN DIVIDEND

 

IN YEAR 2009

 

IT GAVE ONE FOR ONE BONUS ISSUE

 

SO FROM HERE WE SEE BPLANT GAVE MANY SMALL DIVIDENDS AND SMALL BONUS ISSUE WHEREAS THPLANT GAVE BIGGER DIVIDEND AND BIG BONUS ISSUE

 

AS MORE AND MORE PROFITS FLOW INTO THESE PALM OIL COMPANIES WE CAN ONCE AGAIN BE REWARDED WITH BOTH DIVIDENDS AND BONUS ISSUE

 

WARM REGARDS

 

Calvin Tan

 

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

 

 

 

 

And he shall be like a tree planted by the rivers of water, that bringeth forth his fruit in his season; his leaf also shall not wither; and whatsoever he doeth shall prosper.

 

ROLLING IN CASH LIKE NIAGARA FALLS FOR ALL OIL PALM COMPANIES

https://www.youtube.com/watch?v=wB6gHz8XHDI

 

LATEST UPDATE (MAY 23RD 2022)

They say, "SUCCESS BEGETS SUCCESS"

Bplant has declared a 7.3 Sen dividend

This is even better than the special dividend for year 2017 at 7 sen

THE STRONG RESUMPTION OF STRONG EARNINGS PLUS VERY GOOD DIVIDENDS HAS RETURNED

STAY FULLY INVESTED IN PALM OIL SHARES 



NOW HOW DO WE DO A SIMPLISTIC CALCULATION OF THPLANT ASSET VALUE?


RSAWIT JUST SOLD SOME PALM OIL ESTATES AT DIRT CHEAP VALUE OF RM7,500 PER ACRE

OK IF WE TAKE THIS LOW PRICE AS A BENCHMARK FOR ALL OF THPLANT LANDS IN TRENGGANU, PAHANG, JOHOR, SARAWAK & SABAH TOTALLING 240,000 ACRES


THEN 240,000 ACRES X RM7,500

= RM1.8 BILLIONS 


LESS DEBT OF RM730 MILLIONS

= RM1.07 BILLIONS CASH

NOW DIVIDES BY THPLANT'S 883 MILLION TOTAL PAID UP SHARES

= RM1.21 NET CASH

AN GROSSLY UNFAIR VALUE TO TAKE THPLANT  PRIVATE WILL BE 85 SEN (JUST LIKE LTAT TAKING BOUSTEAD PRIVATE AT 85.5 SEN)

SINCE LANDS IN TRENGGANU, JOHOR, SERIAN (SARAWAK)  SABAH ARE WORTH AS HIGH AS RM50K TO RM80K AN ACRE IT WILL MOST PROBABLY GET A VALUATION OF RM2.50 TO RM4.00

A STILL UNFAIR VALUE WILL BE RM1.50 PER SHARE BUT ACCEPTABLE


THESE ARE BASED ON CURRENT ASSET VALUES & ESTIMATES ONLY. TO GET A CLEARER PICTURE A RELIABLE HONEST APPRAISER OR TWO SHOULD BE APPOINTED


MEANWHILE WE WILL WATCH AND SEE


NO BUY OR SELL CALL


WE HAVE PRESENTED THE FACTS AND FIGURES


LET ALL STUDY CAREFULLY AND DECIDE


WITH KIND REGARDS & BLESSED CHRISTMAS


Calvin Tan


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

More articles on THE INVESTMENT APPROACH OF CALVIN TAN
Discussions
Be the first to like this. Showing 1 of 1 comments

calvintaneng

UNLIKE RSAWIT LANDLOCKED PALM OIL LANDS SOUTH OF MIRI SOLD AT ONLY RM7,500 PER ACRE THPLANT HAS LANDS WHICH ECRL RAIL NOW PASSING BY IN TRENGGANU AND IN SERIAN, SARAWAK THE PAN BORNEO HIGHWAY PASSING THROUGH ITS LANDS WILL INCREASE ITS VALUE

BPLANT'S LAND PRICES UP DUE TO ITS PROXY TO DEVELOPMENT
SO WILL BE THPLANT

SEE IN SERIAN

https://www.youtube.com/watch?v=hFGZlThNZGM

2023-12-25 17:02

Post a Comment