THE INVESTMENT APPROACH OF CALVIN TAN

MKHOP (5139) What Is Its Current Forward P/E and Intrinsic Value, Calvin Tan

calvintaneng
Publish date: Thu, 02 May 2024, 05:24 AM
calvintaneng
0 1,841
Hi Guys,

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





Dear Friends of i3 Forum,

Since year 2021 we have a Group called "EAGLE VISION FIRST MOVER" On Palm OIl

As such we know a little about Palm Oil after 3 short years

And here is a fair appraisal of MKHOP


John Neff quote: I don't read, much less follow, the valuations or  predictions...

Let us study the latest Numbers as Revealed


SUMMARY OF KEY FINANCIAL INFORMATION

31 Mar 2024


INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

31 Mar 2024
31 Mar 2023
31 Mar 2024
31 Mar 2023
$$'000
$$'000
$$'000
$$'000
1
Revenue
86,049
0
168,350
0
2
Profit/(loss) before tax
20,118
0
36,042
0
3
Profit/(loss) for the period
16,019
0
27,113
0
4
Profit/(loss) attributable to ordinary equity holders of the parent
16,019
0
26,467
0
5
Basic earnings/(loss) per share (Subunit)
2.36
0.00
3.91
0.00
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 ($$)
0.5800
2.8100



this qtr MKHOP earned 2.36 sen

Annualised 2.36 X 4

= 9.44 sen

At current price of 61.5 sen

its forward P/E is 61.5 sen divides by 9.44 sen

= 6.51 P/E

This is much better than current touted hot stocks of so many others in IT, Tech, Property, Construction, Oil & Gas etc


Now some have pointed out that MKHOP's NAV (NTA) Only 58 sen?


Now As we have calculated MKHOP per acre cost is Rm14,000 in Kutai East, East Kalimantan

A check with current asking prices of lands in Kutai East shows very much higher asking prices


See

Jual tanah uk 10x20

Rp 60.000.000

Jual tanah uk 10x20

Teluk Pandan, Kutai Timur Kab., Kalimantan Timur


From above let us Calculate

10 X 20 = 200 sq meter land

Asking price is 60,000,000 Rupiah

Now let us sum up its value

First convert 200 meter to sq ft by multiplying with 10.764

So 200 X 10.764

= 2,152.8 sq ft

and 60 million rupiah to ringgit is

Rm17,608.65

Now to get per sq ft cost

Divide Rm17,608.65 by 2,152.8

=  Rm8.17 psf cost

Ok here we have the Cost per sq ft

Now to get cost per acre

Multiply Rm8.17 by 43,560 (one acre)

= Rm355,885 per acre

SO IF MKHOP's 45,000 Acres palm oil lands be Revalued
How Much Per Acre?

From Rm14,000 to Rm355,885?

Does that sound far fetched?

Why asking Prices of Lands in East Kutal are so high?

THE ANSWER IS

"INDONESIA HAS CHOSEN KUTAI CENTRAL To Be ITS NEW ADMIN CAPITAL

Now do not be surprised

AFTER LTAT TOOK BPLANT PRIVATE

IT SOLD LANDS FOR RM7.50 to RM7.80 PSF

See
BPlant selling land to Kulim Technology Park
25 Mar 2024, 04:00 pm
/  


main news image

This article first appeared 

in The Edge Malaysia Weekly on March 18, 2024 - March 24, 2024

BOUSTEAD Plantations Bhd (BPlant), a wholly-owned subsidiary of Lembaga Tabung Angkatan Tentera (LTAT)-controlled Boustead Holdings Bhd, is in talks to sell 1,200 acres of plantation land in Kulim, Kedah, to Kulim Technology Park Corp Sdn Bhd (KTPC), according to sources.

It is understood that the price tag being bandied about is RM7.50 to RM7.80 psf, or about RM400 million for all of the 1,200 acres.

Rm7.50 to Rm7.80 is about Rm330,000 Per Acre

A Check with BPLANT Lands in Kulim shows a Book value of only about Rm30,000 per acre
So LTAT made a 1,000% profit windfall

WILL MKHOP make a Golden Windfall someday when Development knocks on its doors


Again we can compare VALUE TO VALUE

Look at IJMPLANT which KLK took Private


Now see final Result of IJM PLANT (Refer Bursa Website)



Quarterly rpt on consolidated results for the financial period ended 30 Sep 2021

IJM PLANTATIONS BERHAD
Financial Year End
31 Mar 2022
Quarter
2 Qtr
Quarterly report for the financial period ended
30 Sep 2021
The figures
have not been audited


SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2021


INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2021
30 Sep 2020
30 Sep 2021
30 Sep 2020
$$'000
$$'000
$$'000
$$'000
1
Revenue
299,782
211,370
571,497
417,355
2
Profit/(loss) before tax
132,422
-2,430
215,539
112,868
3
Profit/(loss) for the period
103,942
-3,201
165,728
84,723
4
Profit/(loss) attributable to ordinary equity holders of the parent
101,040
-1,040
161,100
81,076
5
Basic earnings/(loss) per share (Subunit)
11.47
-0.12
18.29
9.21
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 ($$)
1.7400
1.63



SEE


THE NAV (NTA) OF IJM PLANT ONLY RM1.74?


NOW KLK TOOK IJM PLANT PRIVATE AT RM3.10


FROM RM1.74 TO RM3.10 IS UP 78%


SO BY THE SAME TOKEN IF WE ADD 78% TO MKHOP NTA BY ANOTHER 78%


Then it will be 58 sen X 1.78


= Rm1.03

SO THE REVISED NTA Should be Rm1.03

And at 61.5 sen MKHOP is selling at a discount of 41% to NTA


But remember this

When KLK took Ijmplant private IJM Plant has lands in Sabah, Bulugan & East Kutai

In East Kutai Ijmplant has about 50,000 acres land with Book Value about Rm13,000 per acre


That was in year 2021


See

KLK offers to buy IJM Plantations’ shares from IJM Corp for RM1.53 bil
09 Jun 2021, 07:42 pm


THE NEWS CAME OUT ON 09 JUNE 2021



BUT THE BUILDING OF IKN NUSANTARA ONLY COMMENCED IN FEB 4 2022

(8 MONTHS LATER!)

SINCE THEN PRICES OF LANDS NEAR IKN NUSANTARA HAVE JUMPED UP  BY LEAPS & BOUNDS!!

See

From Fantasy to Fact: The Making of the New Capital IKN


The debate over the transfer of the national capital from Java to Kalimantan ended with the passage of Law Number 3 of 2022 concerning the National Capital (IKN Law). This law was signed and officially published on 15 February 2022, which established the Nusantara Capital Authority, a ministry-level organization that oversees the Special Capital Region of the Archipelago Government, and the designation of the name Nusantara (hence the name Ibu Kota Nusantara IKN) as the capital of the country. With the passing of the law, the new national capital will become the seat of the central government as well as delegations from other countries and international organizations and institutions.



With Kind Regards


Calvin Tan


Please buy or sell after doing your own due diligence

Or consult your Remisier/Fund Manager


NOTE:


ONLY TSH RESOURCES GOT BETTER LANDS THAN MKHOP AS ITS LANDS IN KUTAI BARAT COMMANDS A PRICE OVER OVER RM MILLIONS PER ACRE



MKHOP should trade above Rm1.00


TSH RESOURCES should be worth at least Rm3.00 to Rm5.00


These are the Intrinsic Values









IKN: Main building

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1 person likes this. Showing 2 of 2 comments

calvintaneng

In June 2021 Klk offered to take Ijm plant private at Rm3.10

Ijm plant paid up shares

880,500,000

Lands: 188,248 acres

At cost of Rm3.10 takeover

the price per acre is Rm16,600 an acre

and Ikn Nusantara was officially started building in Feb 2022

so by now land prices are worth much more for those lands in kutai east

2 months ago

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