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
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 INFORMATION30 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
Created by calvintaneng | Apr 06, 2024
THPLANT – A candidate for privatization? By Calvin Tan
https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2021-11-30-story-h1594730266-THPLANT_A_candidate_for_privatization_By_Calvin_Tan
2024-01-10 10:41
calvintaneng
THPLANT NOW 49.5 SEN
TARGET PRICE RM1.00 TO RM1.50 IF TAKEOVER
2024-01-10 01:18