THE INVESTMENT APPROACH OF CALVIN TAN

RIMBUNAN SAWIT (5113) THE FOCUS IS ON: ITS DEEPLY UNDERVALUE PALM OIL ASSETS NOW IN HOT DEMAND, Calvin Tan

calvintaneng
Publish date: Thu, 14 Mar 2024, 10:27 PM
calvintaneng
0 1,812
Hi Guys,

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

Dear friends,


As promised we will now look into the Deeply Undervalue Assets of RSawit

But first take another look at FCPO


Crude Palm Oil Futures

Crude Palm Oil Futures

Rm4279

NOW WE LOOK AT THE ASSETS OF RSAWIT

REFER TO BURSA RSAWI (AR)



RIMBUNAN SAWIT BERHAD [REGISTRATION NO: 200501014346 (691393-U)] I ANNUAL REPORT 2022

LIST OF PROPERTIES OWNED BY THE GROUP


1. NCR Land Located Ulu Teru Land

Miri Division, Sarawak

 JVA Commecing - 7,900.00 Ha Oil Palm Estate - Rm90,486,000

Dated 2003

Ok from above let us do a breakdown

It has 7,900 Hectares in Miri Division

To convert to Acres Multiply by 2.417

= 19,520 acres

Book Value as at year 2003 = Rm90,486,000

To get cost per acre divides Rm90,486,000 by 19,520 acres

= Rm4,635 per acre

What is the current land value in Ulu Teru, Miri Division today?

See

Agriculture land for Sale
Celia Tan

Dipaparkan pada 29 Feb 2024 10:57 AM

(RM 26250 setiap ekar)

  • RM 210,000,000

miri, Miri

Miri, Sarawak

Agricultural Land  •  Keluasan Tanah : 8,000 ekar


From above we can SEE that agriculture lands in Miri is now worth Rm26,250 an acre



2. 

Lot 11,& Lot 12  Buloh Land District Provisional  4,625.00 Ha Oil Palm Estate 

Date of purchase 1999 

Rm86,355,000

4,625 hectares = 11,428 acres

Cost Rm86.355 Millions

Cost per acre = Rm7,556 

Why more expensive?

It was purchased later in time.

And see this

Sibu

https://landsurvey.sarawak.gov.my  › ...
Land and Survey Department, Sarawak
Location Map (HQ) · Feedback · Staff Directory · Job ...  BULOH LAND DISTRICT . 4, DAP TOWN DISTRICT. 5, DURIN ... Land and Survey Department Sarawak. Level 6, Menara ...




Sibu Ulu Oya Road Country Land For SALE

Sibu Ulu Oya Road Country Land For SALE

Lot 100

Asking Price: RM20,000/ acre

Total Price:RM130,200


3. Lot 56, Sawai Land District  4,857.00 Ha Oil Palm Estate

Dated 1994

Rm 47,749,000

Cost per acre RM3,978


AGAIN WE SEE THAT LANDS IN SIBU NOW WORTH RM20,000 PER ACRE


4. 

Lot 56 & 58, Bok Land Disctrict 2087 1988

Provisional

Lot 65, Bok Land Disctrict LeasEHOLD  5,559.00 Ha Oil Palm Estate

Dated 2005 

rM46,068,000

THIS LAND IS RM3,353 

THIS LAND NEAR KUCHING IS REAL CHEAP AT ONLY RM3,353 PER ACRE

See

bok land district

https://landsurvey.sarawak.gov.my  › ...
Land and Survey Department, Sarawak
Land and Survey Department Sarawak. Level 6, Menara Pelita, Jalan Tun Abdul Rahman Yaakub, 93050 Petra Jaya , Kuching,  Sarawak, Malaysia. Telephone : 6082-374555

BOK LAND IS LOCATION IN KUCHING


See Kuching agricultural land price today




Agriculture Land at Sibuti [4.33 acres]

RM 346,400

Land
4.33 Acres
Leasehold
Agricultural


Here we SEE 4.33 acres asking for Rm346,400

Per acre cost is Rm80,000 per acre


Rm3,353 cost per acre (RSAWIT lands!)


From above 4 Examples of Rsawit Lands in Miri, Sibu & Kuching Regions

We see Rsawit land cost only Rm a low of Rm3,353 to Rm7,556 per acre


While Advertised Agricultural Lands now ranged from Rm20,000 to Rm80,000 Acres


Since Rsawit owns more than 150,000 Acres or Twice the Size of Penang Island 72,900 Acres

If Rsawit were to sell these Lands at current value IT WILL UNLOCK IMMENSE VALUE for Shareholders


This is one reason why RSawit has Sold two pieces for Rm165 Millions garnering a gain of 88%


Palm Oil Lands are now a precious commodity as there is no more conversion of Forest lands to Palm oil allowed


Only way for anyone to grow their palm oil lands is to buy from existing palm oil land owners like RSawit


With kind regards


Calvin Tan


Please buy or sell after doing your own due diligence or consult your remisier/fund manager

Johari: Palm oil industry players need to increase FFB yields

  • Thursday, 14 Mar 2024

    6:45 PM MYT

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.



KUALA LUMPUR: Industry players and smallholders need to increase the production of fresh fruit bunches (FFB) and crude palm oil (CPO) to maintain the relevance of the Malaysian palm industry, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

He said the government would not open new plantation areas but instead would focus on efforts to increase the yields.

"If we can achieve an FFB yield of 18 tonnes per hectare, this industry can produce 20.5 million metric tonnes of CPO, an increase of two million metric tonnes from 18.5 million metric tonnes last year,” he said in winding up the debate on the Motion of Thanks on the Royal Address for his ministry in the Dewan Rakyat today.


Read again

He said the government would not open new plantation area


THAT'S IT!



PLUS MORE!!















Now SEE & UNDERSTAND PLEASE


Abang Jo is trying his best to industrialize Sarawak State

Lots of Foreign FDI will flow into Sarawak to set up Industrial Parks, Green Tech Park, Green Energy, Data Center, Solar Center, Ete Etc


AND LOTS AND LOTS OF LANDS WILL BE NEEDED


Among Biggest Land Owners in Sarawak is Rsawit 


Long ago Johor Corp took Kulim private for Its Lands to be hived off  in Pengerang for building New Townships


See Kulim final result

Refer Bursa


SUMMARY OF KEY FINANCIAL INFORMATION

31 Mar 2016

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

31 Mar 2016
31 Mar 2015
31 Mar 2016
31 Mar 2015
$$'000
$$'000
$$'000
$$'000
1
Revenue
404,030
268,170
404,030
268,170
2
Profit/(loss) before tax
-19,447
24,584
-19,447
24,584
3
Profit/(loss) for the period
-23,526
1,351,519
-23,526
1,351,519
4
Profit/(loss) attributable to ordinary equity holders of the parent
-36,349
1,360,502
-36,349
1,360,502
5
Basic earnings/(loss) per share (Subunit)
-2.87
102.48
-2.87
102.48
6
Proposed/Declared dividend per share (Subunit)
0.00
0.38
0.00
0.38
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 ($$)
3.8200
3.8800


See KULIM above


Kulim was Rm2.50 when we told all to buy. Many complained Kulim got little earnings (actually losses) 

But JCorp took Kulim private at Rm4.10 (above Nav of Rm3.82 )


See Bplant

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
202,546
240,251
603,521
913,365
2
Profit/(loss) before tax
20,647
-2,089
27,919
619,076
3
Profit/(loss) for the period
13,924
-4,830
9,403
504,393
4
Profit/(loss) attributable to ordinary equity holders of the parent
15,216
-352
14,912
508,023
5
Basic earnings/(loss) per share (Subunit)
0.68
-0.02
0.67
22.68
6
Proposed/Declared dividend per share (Subunit)
0.00
1.10
1.00
11.15
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 ($$)
1.2900
1.3300


Last final result of Bplant

Made less than 1 sen

Nav only Rm1.29 (LTAT gave Rm1.55 to take private)

Its revised NTA was Rm2.60

So again Bplant was taken private for its "gold mine" lands for Data Centre & Housing


Now see 


RSawit


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
139,619
154,145
507,762
675,917
2
Profit/(loss) before tax
26,851
-3,801
17,550
5,991
3
Profit/(loss) for the period
28,570
-6,490
12,386
-5,818
4
Profit/(loss) attributable to ordinary equity holders of the parent
36,950
-3,190
24,478
-330
5
Basic earnings/(loss) per share (Subunit)
1.81
-0.16
1.20
-0.02
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 ($$)
0.1800
0.1700
Rsawit shows a profit of 1.81 sen
Its Nta should be near 50 sen

SO SARAWAK NEEDING LOTS OF DEVELOPMENT LANDS MIGHT SEE MORE PALM OIL ASSETS IN GENERAL AND RSAWIT IN PARTICULAR (as it has willingness to sell and cash out) BEING SOLD OR EVEN TAKEN PRIVATE AT A GOOD PRICE



SO TAKE NOTE

KULIM WAS RM2.50
JCORP TOOK PRIVATE AT RM4.10
Up 60%

BPLANT WAS 57 SEN
Deducting 24 sen dividend
LTAT Took Bplant private at Rm1.55
Up 369%

RSAWIT Now 23 sen


How Much is the Real Intrinsic Value of RSawit
Rsawit has about the same Palm oil land size like Kulim (Between 160,000 Acres)

If Kulim is worth Rm4.10 how much will RSawit be worth??














More articles on THE INVESTMENT APPROACH OF CALVIN TAN
Discussions
1 person likes this. Showing 6 of 6 comments

calvintaneng

There is a saying, "In the land of the Blind the One-Eyed Man is King"

So in A World where No More Conversion of Forest land to palm oil is allowed THE ONES WHO STILL OWN LARGE TRACTS OF CONVERTED OIL PALM LANDS WILL COMMAND HIGH PRICES!

2 months ago

calvintaneng

Investing does not need rocket science at all

It is just plain common sense

Rsawit gave its
Date of purchase
Location of lands
Acreage
Price/ original cost

All can see how cheaply they bought these lands 20 years ago in year 2003

Now just use a little brain and think

Anyone who had bought houses, lands, shops or condos in year 2003 (21 years ago till now 2024) would have seen their assets value double, triple or gone up even higher in value over the years

So is palm oil lands
They all go up in tandem

2 months ago

calvintaneng

Rsawit is now 26 sen

and will run up more

Jaya Tiasa is Jumping Tiger while Rsawit is the Running Stallone

🐴 🐎 is chasing up from 22 sen to 26 sen (and still galloping higher ) while 🐯 🐅 is already up from 63 sen to Rm1.43

1 month ago

EngineeringProfit

Calvin, stop baiting bilises into rsawit trap. The total value of its assets is just about one third of Kretam's or TSH's

1 month ago

calvintaneng

Kretam got only 100,000 acres

Rsawit got over 175,000 acres or twice the size of Penang Island 72,900 acres

Kretam purchased its lands from Npc Resources over Rm20,000 an acre recently

Rsawit bought its lands long long ago at cost still low Rm3,000 an acre

So Kretam is not cheap

For Rsawit anything below 50 sen still reasonable

And at 26.5 sen Rsawit is a bargain

Don't play contra

Just buy and hold tight

Example

But Bplant at 57 sen in 2021
After 24 sen dividend cost reduced to 33 sen
Ltat took bplant private Rm1.55

So from 33 sen to Rm1.55 is up 369% in 2 years

Just buy Rsawit and hold for 2 years best

Kretam lands only 100,000 acres

Rsawit lands are more than 175,000 acres

Forget Kretam as price not cheap

1 month ago

calvintaneng

Another great buy was Jtiasa at 63 sen in year 2021

Now Jtiasa is up over 100% to Rm1.40

Jtiasa still going up after Genine profit taking done

As for Rsawit it has potential to perform better by percentage from such a low base

1 month ago

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