THE INVESTMENT APPROACH OF CALVIN TAN

THPLANT : A MISPRICED & MISPLACED SECOND LINER AMONG PENNY PALM OIL STOCKS, AND AS SUCH AT 55.5 SEN IS A REAL GEM OF VALUE,Calvin Tan

calvintaneng
Publish date: Wed, 07 Feb 2024, 02:00 AM
calvintaneng
0 1,788
Hi Guys,

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

Dear Friends of I3 Forum,


Thplant was picked at 47 sen in year 2021/22 together with Bplant at 57 sen and Jtiasa at 63 sen 


All these three penny stocks were actually 2nd Liners mispriced and misplaced by the Market


After two years we SEE Bplant rose to Rm1.57 & Jtiasa now at Rm1.16. Both are no longer penny stocks below One Ringgit

Thplant, therefore, is now a Real Bargain left

Why do we say so?


Let us take a look at their Assets


1. Jtiasa - 206,000 acres of Plantation lands

2. Bplant - 220,000 acres of Plantation lands

3. Thplant - 240,000 acres of Plantation lands


All these got huge Lands planted with Palm oil


And how big are they


Imagine Penang island with 72,900 acres



At 240,000 Acres Thplant is?


240,000 divides by 72,900 acres


= 3.29 Times Penang Island!


That's a lot of Lands!


Now how valuable are the lands of Thplant?


Today we see Lands sold in Sabah by Tamaco Plantation to NPC Resources


See (Refer Bursa Website. Under NPC Resources.)


TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS ACCEPTANCE BY TAMACO PLANTATION SDN. BHD. OF NPC'S SUBSIDIARIES OFFER TO SELL PROPERTIES

NPC RESOURCES BERHAD
Type
Announcement
Subject
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)

NON RELATED PARTY TRANSACTIONS

Description
ACCEPTANCE BY TAMACO PLANTATION SDN. BHD. OF NPC'S SUBSIDIARIES OFFER TO SELL PROPERTIES

The Board of Directors of NPC Resources Berhad (“Company” or “NPC”) wishes to announce that the subsidiaries of Company, Berkat Setia Sdn Bhd (“BSSB”), Bonus Indah Sdn Bhd (“BISB”) and Kian Merculaba Sdn Bhd (“KMSB”) (collectively be referred to as “Vendors”) have on 6 February 2024 received from Tamaco Plantation Sdn Bhd (“TPSB” or “Purchaser”) their acceptance of the Letters of Offer to Sell Land(s) dated 1 February 2024 respectively in respect of the following:

  1. legal and/or beneficial interest in 6 parcels of palm oil agriculture lands (“Property 1”) measuring in total 251.324 acres more or less situated respectively in the District of Labuk & Sugut, State of Sabah held by BSSB, at a sale consideration of RM5,529,128.00 (“Offer to Sell Property 1”); 
  2. legal and/or beneficial interest in 3 parcel of palm oil agriculture lands (“Property 2”) measuring in total 4,954.00 acres more or less situated in the District of Labuk & Sugut, State of Sabah held by BISB, at a sale consideration of RM108,988,000.00 (“Offer to Sell Property 2”); and
  3. legal and/or beneficial interest in 4 parcel of palm oil agriculture lands (“Property 3”) measuring in total 2,299.75 acres more or less situated in the District of Labuk & Sugut, State of Sabah held by KMSB, at a sale consideration of RM50,594,500.00 (“Offer to Sell Property 3").

Please refer to the attachement for further details.

This announcement is dated 6 February 2024


Ok here we see the Lands Sold and the Prices mentioned


Take this example



  1. legal and/or beneficial interest in 6 parcels of palm oil agriculture lands (“Property 1”) measuring in total 251.324 acres more or less situated respectively in the District of Labuk & Sugut, State of Sabah held by BSSB, at a sale consideration of RM5,529,128.00 (“Offer to Sell Property 1”); 


251.324 acres sold for Rm5,529,128


To get psf cost divides price RM5,529,128.00

by  251.324 acres

= Rm22,000 per acre

So now we know the Cost of Palm oil Lands in Sabah is worth Rm22,000 per acre


And who sold to who?

It was sold by Npc Resources to Tamaco Plantation 

Sounds familiar? Tamaco Plantation?


TAMACO PLANTATION ALSO WANTED TO BUY THPLANT OIL PALM LANDS IN TATAU, SARAWAK FOR RM10,561 PER ACRE (BUT WAS ABORTED AS EPU (ECONOMIC PLANNING UNIT) REJECTED THE SALE AS TAMACO WAS DEEMED TO BE A NON-BUMI PARTY. SAME REASON WHY KLK PURCHASE OF BPLANT SHARES AT RM1.55 WERE REJECTED


This shows that After TAMACO PLANTATION FAILED TO BUY PALM OIL LANDS AT RM10,560 PER ACRE IN SARAWAK IT HAS TO GIVE A HIGHER OFFER OF RM22,000 PER ACRE FOR NPC RESOURCES LANDS IN SABAH.


Of course Sabah Palm oil lands are more expensive

However, the Lands owned by Thplant in Tatau is near Bintulu and they got development potential after Pan Borneo New Highway is built across Tatau Town


So there is lots of hidden values in Thplant



Refer our post on Thplant


READ THE WHOLE POST VERY VERY VERY CAREFULLY


THPLANT (5112) A Look at its Grossly Undervalue Assets & Increasingly Bright Prospects, Calvin Tan Research


Publish date: Tue, 20 Apr 2021, 10:42 PM

Dear Serious Investors 

To-night we shall take a deeper look at ThPlant - another misunderstood & mispriced stock of Great Value

A cursory look at ThPlant will show that it has Very High borrowings

Also the negative news that Thplant being sued by Party asking for proceeding of Land sales blocked by EPU (Economic planning unit)

Also the dwindling lack of FFB harvest past few months

All the above were highlighted by naysayers to the fear of naive readers who do not do due diligence

Ok now let Calvin share his happy findings

1) WHY IS THPLANT BEING SUED FOR NOT SELLING ITS PLANTATIONS

See

MATERIAL LITIGATION In the High Court of Malaya at Kuala Lumpur in the Federal Territory of Malaysia (Special Powers Division) Application for Judicial Review No. WA-25-71-03/2021 Tamaco Plantation Sdn. Bhd. (Company No. 45922-D) ("Applicant" or "Tamaco") and 1. Ketua Pengarah Unit Perancang Ekonomi Di Jabatan Perdana Menteri 2. TH Plantations Berhad (Company No. 12696-M) ("THP" or "the Company") (both referred as "Respondents")

 

TH PLANTATIONS BERHAD
Type
Announcement
Subject
MATERIAL LITIGATION
Description
In the High Court of Malaya at Kuala Lumpur in the Federal Territory of Malaysia (Special Powers Division) 

Application for Judicial Review No. WA-25-71-03/2021

Tamaco Plantation Sdn. Bhd. (Company No. 45922-D) ("Applicant" or "Tamaco") and

1. Ketua Pengarah Unit Perancang Ekonomi Di Jabatan Perdana Menteri

2. TH Plantations Berhad (Company No. 12696-M) ("THP" or "the Company")

(both referred as "Respondents")

THP wishes to announce that the Company on 31 March 2021 has been served with a copy of a draft Order from the High Court of Kuala Lumpur granting as follows:

Leave to commence Judicial Review proceedings to quash the decision of the Ketua Pengarah Unit Perancang Ekonomi di Jabatan Perdana Menteri (“EPU”) in withdrawing their letter of approval dated 24 November 2020 on 4 December 2020 in relation to the proposed disposal of THP’s entire equity interest in Bumi Suria Ventures Sdn. Bhd. and Maju Warisanmas Sdn. Bhd. to Tamaco pursuant to the Share Purchase Agreement dated 5 December 2019; and

 

ii.  An ad interim stay order in relation to the decision of the EPU in withdrawing their said letter of approval until 12 April 2021, being the date of the hearing of the inter partes application for a further stay of the said decision of the EPU until final disposal of the Judicial Review proceedings.

 

THP and the EPU have been named as Respondents in the Judicial Review proceedings.

The Company will make the necessary announcement as and when there are further developments in relation thereto.

 

This announcement is dated 1 April 2021.

 

Ok look again

Leave to commence Judicial Review proceedings to quash the decision of the Ketua Pengarah Unit Perancang Ekonomi di Jabatan Perdana Menteri (“EPU”) in withdrawing their letter of approval dated 24 November 2020 on 4 December 2020 in relation to the proposed disposal of THP’s entire equity interest in Bumi Suria Ventures Sdn. Bhd. and Maju Warisanmas Sdn. Bhd. to Tamaco pursuant to the Share Purchase Agreement dated 5 December 2019; and

It boils down to these

1) ThPlant has approved to sell its assets in  Bumi Suria Ventures Sdn. Bhd. and Maju Warisanmas Sdn. Bhd. to Tamaco pursuant to the Share Purchase Agreement dated 5 December 2019; and

2) But Sale was objected by Economic Planning Unit

So Tamaco the aggrieved party want this

 to quash the decision of the Ketua Pengarah Unit Perancang Ekonomi di Jabatan Perdana Menteri (“EPU”) in withdrawing their letter of approval dated 24 November 2020 on 4 December 2020 in relation to the proposed disposal of THP

SO FROM HERE WE SEE CLEARLY THAT TAMACO WANTED VERY MUCH TO BUY THOSE LANDS AS PROMISED FOR SALE BY THPLANT BUT WAS THWARTED BY EPU (GOVT)

As a result They are going to Court to pursue for the deal

Now Why is the deal SO IMPORTANT?

 

See our Discovery

 

ThPlant has approved to sell its assets in  Bumi Suria Ventures Sdn. Bhd. and Maju Warisanmas Sdn. Bhd. to Tamaco pursuant to the Share Purchase Agreement dated 5 December 2019; and

 

S & P was done on 5 December 2019

Let's see from Bursa Announcement for December 2019

And  here is the announcement

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS TH PLANTATIONS BERHAD ("THP" OR "THE COMPANY")- PROPOSED DISPOSALS OF 100% EQUITY INTERESTS IN BUMI SURIA VENTURES SDN BHD AND MAJU WARISANMAS SDN BHD

TH PLANTATIONS BERHAD

 

Type
Announcement
Subject
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)

NON RELATED PARTY TRANSACTIONS

Description
TH PLANTATIONS BERHAD ("THP" OR "THE COMPANY")-

PROPOSED DISPOSALS OF 100% EQUITY INTERESTS IN BUMI SURIA VENTURES SDN BHD AND MAJU WARISANMAS SDN BHD

The Company wishes to announce that on 5 December 2019, THP had entered into a Sale Purchase Agreement with Tamaco Plantation Sdn Bhd to dispose its entire equity interests in Bumi Suria Ventures Sdn Bhd and Maju Warisanmas Sdn Bhd, both for a total cash consideration of RM170.0 million ("Proposed Disposals").

 

Please refer to the attachment for further details of the Proposed Disposals. 

 

This announcement is dated 5 December 2019.

Ok now we know the Assets are PROPOSED DISPOSALS OF 100% EQUITY INTERESTS IBUMI SURIA VENTURES SDN BHD AND MAJU WARISANMAS SDN BHD

 

And the Sale Price is Rm170 Millions

 

Now what are the Assets of these Two Mentioned? How Big is the Landbanks?

For that please go see Th Plant Properties in Annual Report

 

SARAWAK

Bumi Suria Ventures Sdn. Bhd.
Ladang Sungai Arip
 
Ladang Sungai Karangan
Sibu-Bintulu, Sarawak
 
- Leasehold 2065 and
2066
6,514 Hectares Oil Palm Estate
 
Book value  Rm124,727,000

 

OK NOW WE GOT THE DETAILS

6,514 hectares with book value Rm124.7 Millions

 

SO IF SALE GOES THROUGH THE PROFIT WILL BE

 

RM170,000,000 minus Rm124,727,000

 

= Rm45,273,000

A PROFIT OF RM45.2 MILLIONS FOR THPLANT

 

Buy Why oh Why EPU stopped the sale?

Is it because Tamaco a non bumi company? Or is the price grossly undervalue?

OK let us calculate the price per acre cost

To get acre multiply 6,514 hectares by 2.471

= 16,096.094 acres for Rm170 Millions

To get cost of per acre 36.2% profit

BUT EPU deemed 3.1% of what Naim sold just too cheap?

Now let us see how court case will lead to

In any case CPO now at sky high prices all Plantation lands all over the world are going up in prices as well from India to Indonesia, From Australia to USA

USA?

Yes. Even Bill Gates investing in Farmlands

See

 

Rm170,000,000 divides by 16,096.094

= Rm10,561.56 per acre

SO TAMACO WANTS TO BUY THPLANT LAND FOR ABOUT

RM10.562 Per Acre (Got planted palm oil lands going for only below Rm11K an acre?

Of course too cheap!



PART TWO


Now we bought both Thplant & Bplant in years 2015/6/7 from Rm1.00 to Rm1.20 range


The Big Surprise is this


From Rm1.00 to Rm1.20 similar price range Bplant SHOT UP TO RM1.57

WHILE THPLANT TAILED AT 55.5 SEN


WHY THPLANT WAS ALSO AT SUCH LEVEL OF RM1.00 TO RM1.20 LIKE BPLANT IN YEARS 2015 to 2017?


The Answer is Found in THPLANT's GOOD DIVIDENDS!


See this


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


AS you can see above

For year 2017 THPLANT gave out a total of 7.6 sen dividend (6 sen plus 1.6 sen)


With such good dividends Mr Market chased Thplant just like Bplant


And why was there a good dividend then

The reason is the same with Bplant

Thplant at that time disposed Gemas Palm oil lands to unlock value & gave out dividend


SEE THPLANT ANNUAL REPORT OF 2018 (Reporting for Year 2017 Activities)


Financial and Operational Performance

For the year under review, THP reported Profit Before

Tax (“PBT”) of RM86.69 million for FY2017, against

a PBT of RM127.30 million a year ago. The Group

also recorded Profit After Tax (“PAT”) of RM50.75

million (FY2016: RM150.47 million). It is important

to note that in FY2016, the Group had recognised

an extraordinary gain of RM112.58 million from

its disposal of THP Gemas Sdn Bhd, which helped

boost its FY2016 bottom line. Excluding the effect

of this extraordinary gain, the Group’s FY2017 core

pre-tax profit more than doubled to RM73.90 million

compared to RM29.30 million last year.


So here we are. The 7.6 sen dividends paid in year 2017 was not from normal operation but from ASSET Disposal

of THP Gemas Sdn Bhd


Look at these lands again which were sold

Again Refer to Thplant 



THP Gemas Sdn. Bhd.

Ladang Pasir Besar

Ladang Londah

Gemas, Negeri Sembilan

1,781 Hectares

 Oil Palm Estate

Rm19,683,000


Ok here let us do a breakdown of these Assets Thplant Sold in Year 2017


1,781 Hectares Book Value Rm19.683 Millions


To convert hectare to Acres multiply by 2.471


So 1,781 X 2.471

= 4,400.851  acres


To get cost per acre Book Value

Divide Rm19.683 Millions by 4,400.851 acres

= Rm4,472.54 Per Acre

Round up nearest decimal

= Rm4,473 Per Acre

That was how cheap Thplant Land holding Cost then. And Now Also the Same for all other 240,000 acres


Now the profit was Rm112.58 Millions


How many per cent in Profit?


Divides Rm112.58 Millions by Rm19.683 Millions Book Value

= 571% Profit


Now All These 240,000 Acres of Thplant OIl Palm Lands are "ALSO GOLD MINE" Lands just like Bplant got


Thplant now 55.7 sen


Our 1st Target Price for Thplant is Rm1.00


Three ways we will see this Rm1.00 breached


1) By Recognition of Value when Jtiasa & Others Move Up & Thplant will rise in tandem

2) By some Assets Sale with Good Dividends if Thplant follows Bplant example to Unlock Value

3) The Fastest Route: A Certain High Takeover Price over Rm1.00 just like KLK Took Private Ijm Plant or LTAT offered Rm1.55 to takeover Bplant


Can we expect privatisation of Thplant?

See this


THPLANT – A candidate for privatization? By Calvin Tan


calvintaneng
0 1,769

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

Hi Guys,

Publish date: Tue, 30 Nov 2021, 08:26 AM
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calvintaneng
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

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 private, people with knowledge of the matter said, amid a rally in palm oil prices.

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 Chartered Accountant and a member of the Malaysian Institute of Accountants (MIA) as well as a Certified Practicing Accountant (CPA) of Papua New Guinea.

NOTE: THESE NEW DIRECTORS HOLD ACCOUNTING DEGREES WITH AUDIT EXPERIENCE

So is privatization on the Card?

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


Latest is the Appointment of BANKER RASHID HUSSEIN AS TABUNG HAJI CHAIRPERSON


So what will be the Future of Thplant?


Warmest regards to all


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
1 person likes this. Showing 2 of 2 comments

calvintaneng

To Sum it Up

1. Thplant is very similar to Jtiasa & Bplant in that they all have over 200,000 acres of Plantation Lands or about 3 Penang Island land size

2) Whenever Bplant or Thplant dispose Assets they reaped huge Profits by virtue of their Deeply Undervalue Land Banks

3) In times when they Sell Assets Huge Profits will be seen Plus generous dividends will be given

4) After Bplant the next candidate for privatisation could be Thplant

5) Tamaco Plantation paid more than twice the price for Thplant (Rm10,561 per acre) to Npc Resources (Rm22,000 per acre) This shows Those With Palm Oil lands are going to see more "brown field" demand as greenfield conversion of oil palms from forest now forbidden

6) So Thplant is a mispriced 2nd Liner among penny stocks. Hence we should take a second look

7) With Appointment of Banker Rashid Hussein there is a possibilty Thplant might also be a candidate for privatisation

2 months ago

calvintaneng

Fantastic Fertilizer News!

Natural Gas (Nitrogen Fertilizer) has dropped from US10.00 to US1.58

A Drop of almost 85% from year 2022 Peak

Tremendous Savings on Fertilizer For Oil Palm esp those with Growth Stage of Palm Fronts

This will translate to lower Cost of Cpo production

Best to Stay Safe in Palm Oil Stocks

https://tradingeconomics.com/commodity/natural-gas
(Click on 10 year price chart button)

2 months ago

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