THE INVESTMENT APPROACH OF CALVIN TAN

MKHOP IPO AT 62 SEN VERSUS BPLANT, HS PLANT, THPLANT, RSAWIT, JAYA TIASA, TAANN & TSH RESOURCES: COMPARE & CONTRAST, Calvin Tan

calvintaneng
Publish date: Tue, 23 Apr 2024, 06:10 AM
calvintaneng
0 1,810
Hi Guys,

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

Dear Friends of i3 Forum,

MKHOP Has garnered an 8.43 Times Over Subscription of Its New IPO at 62 sen!

An Over Whelming Response Indeed! 

Now we will compare some of our Top 10 Picks in EAGLE VISION FIRST MOVER GROUP Stock Picks Since Year 2021

And we selected these

1) BPLANT: This was taken private by LTAT at Rm1.55 (Buy call was 57 sen)

2) HS PLANT (All lands in Sabah)

3) R SAWIT (All lands in Sarawak

4) THPLANT (Lands in Peninsular, Sarawak & Sabah)

5) JAYA TIASA (All lands In Sarawak)

6) TAANN (All lands in Sarawak)

7) TSH RESOURCES (Lands in Sabah & East Kalimantan)


Now let's begin:


1) BPlant

 Total paid up shares: 2.248 Billions

Buy call at 57 sen

And Total Acres 220,000

To get original cost

2.248 Billion X 57 sen

= Rm1,281,360,000

Cost per Acre Divides Rm1,281,360,000 by 220,000 Acres

= Rm5824 per acre


LTAT Took Bplant Private at Rm1.57

At Rm1.57 with Rm2.248 Billion


LTAT is offering Rm3,529,360,000 To Take Bplant private

and per acre = Rm16,042

However, Bplant got an outstanding loan of Rm800 Millions

Adding loan cost 

= Rm19,678 per acre


Now let's compare with MKHOP

It has a paid up Capital of 1.02 Billion shares or 1,020,000,000 shares

Total land Area is 45,000 Acres

IPO Price 62 sen

To get per acre cost

Multiply Total Paid up shares by 62 sen a piece

then divides by 45,000 acres

So 1,020,000,000 x 62 sen

= Rm632,400,000 

divides by 45,000 acres

= Rm14,053 per acre

S0 MKHOP is priced lower than Bplant final privatised price.


2) HS PLANT

Total Paid up shares 800 million

Price Rm1.86

Total acres 99,529

Less Rm600 Millions Cash

Price per acre : Rm8,922

All the Palm OIl lands of HS Plant are located in Sabah

Hs Plant is Cash rich & has a dividend policy of 60% from net profit

If you are looking for utmost safety with dividend then Hs Plant is ideal


3) THPLANT

Total Paid up Capital 883 million shares

Price 66 sen

Total land size 240,000 acres

Outstanding debt Rm1 Billions

So 883 million x 66 sen

= Rm582,780,000

Add Debt Rm1 Billions

Divides by 240,000 acres

= Rm6,594 per acre cost

Now just like Bplant THPLANT Got lands in Peninsular (From Trengganu to Pahang to Johor), & Sarawak/Sabah

Its lands in Trengganu are located near Kertih, Its Sarawak lands in Serian & Tatau are along Prime Area near Pan Borneo HIghway

So THPLANT is a candidate for privatisation for its grossly undervalue land banks


4) R SAWIT

Total paid up shares 2.04 Billions

Price 24.5 sen

Total land area: 172,500 acres

Or 2.04 Billion x 24.5 sen

= Rm499,800,000

Add debt Rm320 Million

Divides by 172,500 acres

= Rm4,752 per acre cost

And Lands of Rsawit are located near Kuching, Sibu & Miri

No wonder Insiders are buying

See

Mr Tiong Chiong Ie is MD (Managing Director of RSawit)

Mr Wong Ing Seng is COO (Chief Operating Officer)



5. JAYA TIASA

973,717,797 shares

Price Rm1.28

Land size 206,000 acres

Per Acre Cost: Rm6,050

Now Note This

Out of 206,000 acres 171,000 Acres of JTIASA are Prime Productive age

About 2 1/3 Times the Size of Penang Island

And JTIASA Has a P/E of only 7

MKHOP's P/E is 20.3

That Means if from Pure Earnings Jaya Tiasa will double your money in less than 7 years whereas MKHOP will double your money in 20.3 years time

Of course people who knows VALUE  are going GaGa over Jtiasa

For MKHOP there is a different story?

What Story?

IPO FEVER!

So if people likes GORENG THEY WILL GO FOR MKHOP!


6) TAANN

Total paid up shares

444,840,000 Shares

Price Rm4.17

Land Size: 160,615 Acres

Cost per acre: Rm11,549

TAANN ALSO HAS A 60% DIVIDEND PAY OUT LIKE HS PLANT

SO TAANN IS A DIVIDEND CASH COW.


7) TSH RESOURCES

Total paid up shares 1.38 Billions

Price Rm1.14

Total land 188,000 Acres

So 1.38  Billions x Rm1.14

= Rm1,573,200,000

Less  Remeasurement gain of INNO

Rm70 Millions

= Rm1,503,200,000

Divides by 188,000 acres

= Rm7,995 per acre


Now MKHOP per acre cost is Rm14,053


So Cost per Acres TSH is cheaper by Rm6,058

But wait a minute!

They said MKHOP's lands are Near to Ikn Nusantara {New Admin Capital of Indonesia)

Is that so?

Then take a good look at lands owned by TSH Resources


MKHOP lands' distance to Titik Nol Ikn Nusantara below

4 hr 38 min  (211.7 km)     via Jl. Tol Balikpapan - Samarinda and Jl. Ahmad Yani
As can be seen above
PT. MAJU KALIMANTAN HADAPAN (Estates owned by MKHOP) is 211.7KM (East Kutai)  away up north of Titik Nol Ikn Nusantara

Now See TSH's Lands in BONGAN, KUTAI WEST
43.9 km
Distance from   Bongan to Titik Nol IKN Nusantara
Above is Bongan to Titik Nol Ikn Nusantara
A distance of 43.9KM only



So here you are
MKHOP lands Distance is 211.7KM
TSH lands Distance only 43.9KM
2. Total land Mass of MKHOP is 45,000 Acres
Total Land Mass of TSH is 94,700 Acres (Of which 80,000 Acres are in Bongan WEST KUTAI); rest in East Kutai just like MHKOP lands)
So MKHOP has 45,000 acres
TSH has a total acres of 94,700 Acres

And current asking prices for Land Prices

1) Tanjung Selor (North Kalimantan)
Rm180,000 per acre

2) East Kutai
Rm300,000 to Rm700,000 per acre

3) West Kutai
Rm3 millions to Rm4.2 Millions

Why lands in West Kutai command such high prices?
Answer:

Since these lands are located SO NEAR TO TITIK NOL IKN NUSANTARA 
THEY HAVE FUTURE "ECONOMIC' GROWTH POTENTIAL"

OR THAT IS FOR LAND VALUES
AND IT WILL TAKE TIME

THEN WE COMPARE EARNINGS PER SHARE

MKHOP'S PE IS 20.3


NOW TSH IS RM1.14

SEE ITS LAST 4 QTR EARNINGS


1.84 SEN

2.14 SEN

0.77 SEN

2.13 SEN


TOTAL LAST 4 QTRS

= 6.88 SEN

FOR P/E DIVIDES RM1.14 BY 6.88 SEN

= 16.56 P/E

SO TSH'S P/E AT 16.56 IS CHEAPER THAN MKHOP AT 20.3

NO MATTER HOW YOU LOOK AT IT: FROM LAND VALUE POTENTIAL , P/E, OER EXTRACTION, MANAGEMENT SKILL TSH RESOURCES IS A VERY UNDERVALUE & OVERLOOKED SHARE OF DEEPEST VALUE WITH A VERY BRIGHT FUTURE


THANK YOU FOR READING


NOW PLEASE DO YOUR OWN DUE DILIGENCE

AND CONSULT YOUR FUND MANAGER/REMISIER BEFORE BUYING AND SELLING


WITH KIND REGARDS


Calvin Tan

Related Stocks
Market Buzz
Discussions
2 people like this. Showing 8 of 8 comments

calvintaneng

A summary

For fastest real time earnings - Jaya Tiasa

For lowest cost of land bank value Rsawit

For potential privatisation Thplant

For safety of capital and dividends - Hs plant & Taann

For future potential growth in ikn nusantara - Mkhop & Tsh Resources

In any case we will not include Mkhop in Eagle Group top picks as it has only 45,000 acres

We want to select those with 200,000 acres

1 month ago

speakup

IPO= new & sexy mah, attract a lot of novice retailers

1 month ago

calvintaneng

The chasing of syndicated hot stocks, IPO fever and what is popular without substance will eventually cause 90% to 95% of traders, punters and gamblers to lose out

1 month ago

calvintaneng

Rsawit and Jtiasa

undervalue and fastest growth see buying support

4 weeks ago

kingkong0000

Ooo

1 month ago

Post a Comment