THE INVESTMENT APPROACH OF CALVIN TAN

Hap Seng Plantation (5138) A Solid Stable Dividend Palm Oil Stock you can sleep well after investing, Calvin Tan

calvintaneng
Publish date: Wed, 07 Feb 2024, 09:13 PM
calvintaneng
0 1,788
Hi Guys,

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

Dear friends


This is the month when most Companies will be reporting their Results for Oct to Dec 2023 (final Qtr of 2023)


And for Palm Oil there are so transparent. We already can compute their Results by what they reported


See Hs Plant FFB for last qtr of 2023


Disclosure On Quarterly Production

HAP SENG PLANTATIONS HOLDINGS BERHAD
Production figures for current quarter and year to date
Individual Quarter (quarter)
Cumulative Period
Current Year Quarter
Preceding Year Corresponding Quarter
Changes

(Amount / %)

Current Year To - Date
Preceding Year Corresponding Period
Changes

(Amount / %)

31 December 2023
31 December 2022
31 December 2023
31 December 2022
PLANTATION
Crude Palm Oil (MT)
										40,590.00

										40,542.00

										0.12

										147,317.00

										130,508.00

										12.88

Fresh Fruits Bunches (MT)
										180,656.00

										177,160.00

										1.97

										637,718.00

										583,222.00

										9.34

Palm Kernel (MT)
										9,641.00

										8,646.00

										11.51

										33,788.00

										29,365.00

										15.06

Production figures for current quarter compared with immediate preceding quarter
Current Quarter
Immediate Preceding Quarter
Changes

(Amount / %)

31 December 2023
30 September 2023
PLANTATION
Crude Palm Oil (MT)
										40,590.00

										36,627.00

										10.82

Fresh Fruits Bunches (MT)
										180,656.00

										158,853.00

										13.73

Palm Kernel (MT)
										9,641.00

										8,239.00

										17.02


Year On Year Hs Plant FFB is up 9.34%

Quarter to Quarter Result even better at 13.73%


And HS PLANT Being a NET CASH CO with about 60 sen net Cash

So we are actually paying only Rm1.19 (Price now Rm1.79) after we deduct its Net Cash of 60 sen


PLUS Hs Plant has a dividend policy of paying out 60% dividend out of Net Profits


See Hs Plant recent dividend trends



See the green color bands?
For year 2021 Hs Plant paid a total of 7 sen dividend

For year 2022 Hs Plant paid a Usual Plus a special dividend totaled 20.5 sen

Last year 2023 Hs Plant paid 8.5 sen dividend

If for year 2024 Hs Plant decides to pay the same 8,5 sen dividend

Then at Rm1.79 the dividend yield is 4.74%
This is better than Bank FD

Now there are more possibilities

1) Hs Plant could follow year 2022 by adding a Special Dividend. After all it does not need the extra 60 sen net cash

2) Or if FFB and profits increased Hs Plant could increase its dividend payout in tandem with higher profit

3) Also Hs Plant stands as a candidate for privatisation as well like ijmplant and bplant

From all angles we look at Hs Plant is a very stable, solid and pays a fair dividend

WE CAN CERTAINLY BUY AND SLEEP WELL

Best Regards

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 3 of 3 comments

calvintaneng

Dividend is a good measure of a healthy company

2 months ago

calvintaneng

Hs plant a stock you can 😴 well on it

2 months ago

Post a Comment