THE INVESTMENT APPROACH OF CALVIN TAN

THE SECRETS OF IDENTIFYING VALUE : REMESUREMENT VALUATION IN FGV OR FELDA GLOBAL VENTURE, Calvin Tan

calvintaneng
Publish date: Wed, 28 Feb 2024, 01:44 AM
calvintaneng
0 1,788
Hi Guys,

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

Dear friends of i3 Forum,


There are Ways by Which we can identify Value. Or the mispricing of Value.


Hear from Warren Buffet latest letter


Occasionally markets and/or the economy will cause stocks or bonds of some large and fundamentally good businesses to be strikingly

mispriced.


As such it is our opportunIty to buy into a DISCOUNT


And these are some VALUE THAT WE CAN DO RESEARCH TO FIND THEM


1. VALUE CAN GO UP BY REMESUREMENT OF INVESTMENTS 


See FGV

SUMMARY OF KEY FINANCIAL INFORMATION

31 Dec 2023

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

31 Dec 2023
31 Dec 2022
31 Dec 2023
31 Dec 2022
$$'000
$$'000
$$'000
$$'000
1
Revenue
5,364,702
6,098,467
19,359,186
25,561,543
2
Profit/(loss) before tax
166,274
468,133
304,924
1,920,081
3
Profit/(loss) for the period
98,603
329,285
111,802
1,268,601
4
Profit/(loss) attributable to ordinary equity holders of the parent
71,825
344,295
103,002
1,329,226
5
Basic earnings/(loss) per share (Subunit)
1.97
9.44
2.82
36.44
6
Proposed/Declared dividend per share (Subunit)
3.00
11.00
3.00
15.00
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 ($$)
1.6400
1.7100


The above balance sheet tells us FGV earned only 1.97 sen latest quarter

Now see deeper (Refer latest qtr result of FGV in Bursa)

Interests in joint ventures..............................Rm 593,623,000


We know FGV has JV with Felda in MSM Sugar


Ok let's go see FGV shareholdings in MSM (Refer Top 30 Holders in MSM)


1 FGV SUGAR SDN BHD 281,369,800 40.03

2 FGV HOLDINGS BERHAD 77,150,248 10.97

3 KOPERASI PERMODALAN FELDA MALAYSIA BERHAD 66,305,852 9.43

4 AMANAHRAYA TRUSTEES BERHAD

AMANAH SAHAM BUMIPUTERA

52,654,500 7.49

5 KOPERASI PERMODALAN FELDA MALAYSIA BERHAD 41,088,100 5.84


See Top 1 & 2 belong to FGV while 3 & 5 belong to Felda in a Joint Venture


Now If FGV wanted to it can do a Remeasurement of ITS VALUE IN MSM


By first calculation the Total Current Cash Value in MSM

FGV has 

 281,369,800 40.03 &  77,150,248 10.97 shares in MSM

Total is 358,520,048


Market Summary >  MSM Malaysia Holdings Bhd
2.81 MYR

So 358,520,048 X Rm2.81

= Rm1,007,441,200

Over Rm1 Billion Cash (Paper value in MSM)

See its original cost stated 

.Rm 593,623,000

So with the Rise of MSM Sugar shares FGV will see a gain of

Rm1,007,441,200 less Rm593,623,000

= Rm413,818,200

That's over Rm413.8 Million profit

And about 11.35 sen profit

If FGV were to Remeasure its Value  from MSM & Book them as Profit then FGV result will not be only 1.97 sen

it will be 1.97 sen & 11.35 sen

= 13.32 sen

And if this result is Published it will sure give us a more accurate Update


Now Felda has wanted to take FGV private at Rm1.30 (But unsuccessful)

And what is the Total Value of FGV in MSM since its Cash is paper is 

Rm1,007,441,200

= 27.63 sen

If we deduct this 27.63 sen from Felda offer price of Rm1.30

Then Felda actually offers only Rm1.023

Nearest decimal

= Rm1.02

To take FGV private at Rm1.02 when IPO was Rm4.55?

See


IPO Info
Offer Period

Opening

2012-05-31

Closing

2012-05-31

Time Table

Allotment Date

2012-06-26

Listing Date

2012-06-28

Price

Issue Price

4.55

Units

3,648,151,500

Share Capital

0.000

No of Shares

Public Issue

980,000,000

Offer for Sale

1,208,890,900

Private Placement

N/A

Issuing House

MIH 528

ISIN Code

MYL5222OO004

Prospectus:

INITIAL PUBLIC OFFERING ("IPO") OF UP TO 2,188,890,900 ORDINARY SHARES OF RM1.00 EACH IN FELDA GLOBAL VENTURES HOLDINGS BERHAD ("FGVH") ("IPO SHARES") IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE 3,648,151,500 ORDINARY SHARES OF RM1.00 EACH IN FGVH ("SHARES") ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING AN OFFER FOR SALE OF UP TO 1,208,890,900 EXISTING SHARES ("OFFER SHARES") AND A PUBLIC ISSUE OF 980,000,000 NEW SHARES ("ISSUE SHARES") COMPRISING:

(I) INSTITUTIONAL OFFERING OF UP TO 1,915,279,900 SHARES COMPRISING:

• UP TO 1,208,890,900 OFFER SHARES AND 286,852,000 ISSUE SHARES TO MALAYSIAN INSTITUTIONAL AND SELECTED INVESTORS AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS AT THE INSTITUTIONAL PRICE TO BE DETERMINED BY WAY OF BOOKBUILDING ("INSTITUTIONAL PRICE"); AND

• 419,537,000 ISSUE SHARES TO BUMIPUTERA INSTITUTIONAL AND SELECTED INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AT THE INSTITUTIONAL PRICE,

(II) RETAIL OFFERING OF 273,611,000 SHARES COMPRISING:

• 200,648,000 ISSUE SHARES MADE AVAILABLE TO THE ELIGIBLE EMPLOYEES (AS DEFINED HEREIN), ELIGIBLE FELDA SETTLERS (AS DEFINED HEREIN) AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF FGVH AND ITS SUBSIDIARIES; AND

• 72,963,000 ISSUE SHARES MADE AVAILABLE TO THE MALAYSIAN PUBLIC,

AT THE RETAIL PRICE OF RM4.55 PER SHARE ("RETAIL PRICE"), PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO REFUND OF THE DIFFERENCE, IN THE EVENT THAT THE FINAL RETAIL PRICE (AS DEFINED HEREIN) IS LESS THAN THE RETAIL PRICE, SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AND OVER-ALLOTMENT OPTION (AS DEFINED HEREIN). THE FINAL RETAIL PRICE WILL BE EQUAL TO THE LOWER OF:

(I) THE RETAIL PRICE; AND


12 Years ago in 2012 FGV went for IPO at the Lofty Price of Rm4.55

Today it wants to be taken back at Rm1.02?

That is quite unfair

So Felda should revise up its Offer


We see How Bplant was given an Unfair Taken Over Price even at Rm1.55 (Fair value was Rm2.60)

But acceptable since Bplant IPO was 


Prospectus:  April 2022 May 27 Closing Date.

INITIAL PUBLIC OFFERING ("IPO") OF UP TO 656,000,000 ORDINARY SHARES OF RM0.50 EACH IN BOUSTEAD PLANTATIONS BERHAD ("BPB") (" IPO SHARES") COMPRISING AN OFFER FOR SALE OF UP TO 76,000,000 EXISTING BPB SHARES ("OFFER SHARES" ) AND A PUBLIC ISSUE OF 580,000,000 NEW BPB SHARES ("ISSUE SHARES") IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE 1,600,000,000 ORDINARY SHARES OF RM0.50 EACH IN BPB ("BPB SHARES") ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD IN THE FOLLOWING MANNER:

A. THE INSTITUTIONAL OFFERING OF UP TO 163,570,500 IPO SHARES COMPRISING UP TO 29,000,000 OFFER SHARES AND 134,570,500 ISSUE SHARES TO MALAYSIAN INSTITUTIONAL AND SELECTED INVESTORS, INCLUDING BUMIPUTERA INSTITUTIONAL AND SELECTED INVESTORS APPROVED BY THE MINISTRY OF

INTERNATIONAL TRADE AND INDUSTRY AT THE INSTITUTIONAL PRICE TO BE DETERMINED BY WAY OF BOOKBUILDING ("INSTITUTIONAL PRICE"): AND

B. THE RETAIL OFFERING OF UP TO 492,429,500 IPO SHARES COMPRISING UP TO 47,000,000 OFFER SHARES AND 445,429,500 ISSUE SHARES TO:

(I) ENTITLED UNITHOLDERS OF AL·HADHARAH BOUSTEAD REIT ("BREIT") (AS DEFINED HEREIN) PURSUANT TO THE RESTRICTED BREIT OFFERING (AS DEFINED HEREIN);

(II) ENTITLED SHAREHOLDERS OF BOUSTEAD HOLDINGS BERHAD ("BHB" ) (AS DEFINED HEREIN) PURSUANT TO THE RESTRICTED BHB OFFERING (AS DEFINED HEREIN);

(III) ELIGIBLE DIRECTORS AND EMPLOYEES OF BPB AND ITS SUBSIDIARIES ("BPB GROUP") AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF THE BPB GROUP, ELIGIBLE DIRECTORS AND EMPLOYEES OF BHB AND SPECIFIED DIRECTORS OF SELECTED SUBSIDIARIES OF BHB; AND

(IV) MALAYSIAN PUBLIC (AS DEFINED HEREIN),

AT THE RETAIL PRICE OF RM1.60 PER IPO SHARE ("RETAIL PRICE" ),

SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AND OVER-ALLOTMENT OPTION AS SET OUT IN THIS PROSPECTUS.

Since Bplant IPO was Rm1.60 plus Bplant already gave free bonus and lots of good dividends over the years the Public have accepted Bplant privatisation offer by LTAT at Rm1.55


Now it is Felda's Turn on FGV


Best Regards


Calvin Tan


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

Discussions
Be the first to like this. Showing 1 of 1 comments

calvintaneng

FGV's Value in MSM is miniscule Compared to Its Immense Asset Value in all its Land Assets
Book Value as low as Rm3,000 per Acre (Market Value Rm50,000 to Rm500,000 per acre

1 month ago

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