THE INVESTMENT APPROACH OF CALVIN TAN

THPLANT (5112) The Cheapest Small Cap Palm Oil Stock with the Bigger Land Bank over 240,000 Acres on planet earth, Calvin Tan

calvintaneng
Publish date: Wed, 10 Jan 2024, 01:13 AM
calvintaneng
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Hi Guys,

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

Dear friends of i3 Forum,


In years 2016/7 we bought both Thplant & Bplant around Rm1.10 to Rm1.20

After 6 years Bplant is now Rm1.56 (To be taken private by LTAT & delisted from Bursa soon. While Thplant is still at the low price of 49.5 sen

Why the divergence in prices?

We already gave the answer. Bplant valued was unlocked by LTAT when they sold off piece after piece of Bplant lands to unlock good dividends to shareholders. And finally Bplant is offered at Rm1.55 for total takeover by LTAT. And the reason is obvious. Tok Mat said Bplant lands are now worth their value like planting on "Gold Mine Lands"

So far so good for all happy investors who bought Bplant at 57 sen in year 2021 (with 24 sen dividends received the real time cost only 33 sen) and from 33 sen to Rm1.55 is a nice 369% gain


Now what about Thplant?

It has all its 240,000 Acres land still intact and still going up in value as we type. For Bplant big chunks of lands have been sold

So we now see Thplant has lots of "Gold Mine" Lands as well


Market has not given attention to Thplant as yet. That is why we are bullish (when others are still bearish)


Remember this

John Templeton quote: Bull markets are born on pessimism ...

At this bombed out price of 49.5 sen Thplant presents a great buying opportunity to get it so cheap


Now look at the latest Result again   


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


At 1.5 sen profit

Annualised 1.5 sen x 4 = 6 sen


At 49.5 sen it has a P/E of 8.25 or yield of 12.1%

and 12.1% is 4 X bank interest rate of 3%


For the last qtr 3 months ThPlant

FFB (Fresh Fruit Bunch) Harvest are


July 2023: 72,297 tonnes

August 2023: 79,763 tonnes

Sept 2023: 81,612 tonnes

Total: 233,672 tonnes


Latest Qtr

October 2023: 91,074 tonnes

November 2023: 86,021 tonnes

December 2023 (Result anytime now)

Total of 2 months = 177,095 tonnes


Two months of final qtr already 177,095 divides by 233,672 tonnes

= 75.7% 

We await final FFB for month of December 2023 to be reported by this month

Now just like Bplant Thplant has intention of unlocking value to pare down debts


The Current debt of Thplant is Rm824.706 Millions

Its cash is Rm95.487 Milions

Other Investments Rm15.801 Milions

Total current cash & equivalent = Rm111.288 millions

So debt less cash = Rm713.416 millions

Another long term sukuk loan Rm300 millions already rolled over.

So the pressing need is the Rm713.416 Millions debt


Now

look deeper into the Balance Sheet

Under Item 13

13. Group assets held for sale

Investments in TH PELITA Meludam Sdn. Bhd.(“THPMel”), TH PELITA Beladin Sdn. Bhd.

(“THPBel”), TH PELITA Simunjan Sdn. Bhd. (“THPSim”), TH PELITA Gedong Sdn. Bhd.

(“THPGed”) and TH PELITA Sadong Sdn. Bhd. (“THPSad”) are presented as assets held for

sale. Efforts to sell have commenced, and sale is expected to be completed within twelve (12)

months. (ALL THESE LANDS ARE LOCATED IN SARAWAK)

Assets and liabilities classified as held for sale are as below:


TOTAL SUM: RM782.389 MILLIONS

So if Current Land Assets are sold at face value

It will be  RM782.389 MILLIONS

less current debt:  Rm713.416 millions

= Rm68.973 Millions (Surplus current cash)

Now what about Rm300 Millions Sukuk Loan?

For that then go dig even deeper into the Current Latest Status of Land Value in Sarawak

Thplant based its 7 Estates for sale an the Old Book Value of 

RM782.389 MILLIONS

(When Its Palm Oil lands were acquired at Rockj Bottom Price of Rm3,000 to Rm5,000 per acre

And since then Land Prices in Sarawak have shot up by 100% to 300%

Rm6,000 to Rm15,000 per acre

In some places where Pan Borneo Highway cut through its lands they have gone as high as Rm30,000 to Rm40,000 per acre

So we should also expect when Actual Sale is Transacted These 7 Plots of Thplant Lands might be at least Rm2 Billions more or less

This amount or sum of incoming cash will more than settle all Thplant outstanding debt and Sukuk loans as well. And with lots more to spare for A Special Dividend


But there is now a new development in THPLANT in its early days

Former Boss of RHB BANK Rashid Hussein has joined Thplant as well as other Money Managers of Finance.

Some unknown actions might yet show up in Thplant just like in FGV (Felda wanted to take FGV Private), LTAT has offered Rm1.55 to take Bplant private

And now Thplant also a GLC might spring a Surprise for All

As of now Tabung Haji Already owned 73.8% of Thplant


And remaining 26.2% from Total Paid Up shares of 883 Million at 49.5 sen is only 

RM114,516,270


YES! IT ONLY TAKES TABUNG HAJI RM114.516 MILLIONS TO TAKE THPLANT PRIVATE AT THE BOMBED OUT PRICE OF 49.5 SEN PER SHARE AS OF NOW


AND THPLANT AT 49.5 SEN IS DIRT CHEAP


With Kind Regards

Calvin Tan


Please buy or sell after doing your own diligence

In doubt please consult your Remisier, Fund Manager, Accountant, Real Estate Valuer and Auditor before buying or selling




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calvintaneng

THPLANT NOW 49.5 SEN

TARGET PRICE RM1.00 TO RM1.50 IF TAKEOVER

2024-01-10 01:18

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