THE INVESTMENT APPROACH OF CALVIN TAN

TSH RESOURCES IS FINALLY A NET CASH PALM OIL COMPANY! AND IT HAS BOTH GROWTH & DEEP VALUE, Calvin Tan

calvintaneng
Publish date: Mon, 20 May 2024, 07:29 PM
calvintaneng
0 1,828
Hi Guys,

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

Dear friends of i3 forum

Just as we expected, even in this low season Quarter TSH has emerged as A NET CASH COMPANY after more than 2 decades!


Now let us look at its latest Results & Dig deeper into Its Balance Sheet


See


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
242,388
250,298
242,388
250,298
2
Profit/(loss) before tax
35,027
54,225
35,027
54,225
3
Profit/(loss) for the period
25,177
37,933
25,177
37,933
4
Profit/(loss) attributable to ordinary equity holders of the parent
20,073
29,428
20,073
29,428
5
Basic earnings/(loss) per share (Subunit)
1.45
2.13
1.45
2.13
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 ($$)
1.4985
1.4831



From above we see TSH


Revenue Rm242.388 Millions

Net profit Rm20.07 Millions or 1.45 sen

ITS NAV (NTA) is Rm1.50 (Nearest decimal)

At Rm1.11 TSH is selling at 26% discount to NTA

But take Note. THE ASSETS WERE BOUGHT LONG AGO IN YEARS 2005 to 2011 & NOT YET REVALUE TO ACTUAL CURRENT MARKET VALUE


Now let us look at the Balance sheet (Refer to latest Qtr report)


1st see net Cash & Cash equivalents


Investment securities Rm27,619,000

(Parked under non current assets)

Other current assets Rm7,889,000

Short term funds Rm2,888,000

Cash and bank balances Rm255,825,000

TOTAL :  Rm294.221 MILLIONS (CASH)


See Debt

Loans and Borrowings Rm98,779,000

(Non current)


Loans and Borrowings Rm174,707,000

(Current liabilities)

TOTAL DEBT: Rm273.486 Millions


TOTAL CASH Less TOTAL DEBT

= RM20.735 MILILIONS NET CASH


FANTASTIC ACHIEVEMENT AFTER 2 DECADES!

TSH RESOURCES IS FINALLY A NET CASH COMPANY!!

WELL DONE! WELL DONE!!


Now see further


Assets held for sale RM222,240,000

(Refer Qtr Result)

This sum awaits payment extended to July 4 2024 (Part 3 of Bulugan Land Sold)

And if Cash is in it will be

16.05 SEN CASH (Pure Cash to be Received)



AND MORE


See Under

Investment in an associate Rm78,086,000

And who is that Associate?

Answer: INNOPRISE PLANT

Of which TSH got 105 Million Shares

And Inno is now 

Innoprise Plantations Bhd
KLSE: INNO 

1.46 MYR+0.0100 (0.69%) today

At Rm1.46 X 105 Million shares
= RM153.3 MILLIONS CASH EQUIVALENT

Now if TSH were to take remeasurement gain in Inno

From Rm78.086 Millions to Rm153.3 Millions

There will be A Gain of Rm75.214 Millions

Or 5.43 sen

So from Cash of Assets 16.05 Plus Gain in INNO 5.43 sen

there will be a extra net gain o f 21.48 sen Cash

But these are peanuts Compared to the IMMENSE POTENTIAL OF TSH's 94,700 ACRES' Lands Located Just beside IKN NUSANTARA
New Admin Capital of Indonesia
Book Value less than Rm10K an acre to as low as Rm4,500 per acre & ALL ARE NOW APPRECIATING IN VALUE SILENTLY

THAT IS WHY CALVIN & EAGLE VISION FIRST MOVER GROUP ON PALM OIL ARE EXTREMELY BULLISH ON TSH RESOURCES

AS WE ARE LONG TERM INVESTORS WE WILL HOLD AS LONG AS THERE IS VALUE

Like KULIM, TMAKMUR, DAIMAN, KWANTAS, IJM PLANT & BPLANT Until Their DEEP VALUE EMERGE Or Are Taken Private at Premium Prices One Day


Warm regards

Calvin Tan

Please buy or sell After Doing your own due Diligence or Consult your Remisier/Fund Manager


Commentary on the prospects (Refer Bursa)

CPO prices have traded sideway around RM3,800 per MT after easing from the height of

RM4,500 level in early April due to falling oil export, rising CPO stockpile and ample supply of

competing vegetable oil. Since end of April, soybean prices have widened its premium against

the CPO as devastating flooding in far southern Brazil dampened the expectation of good soybean

crop production. In view of this, CPO price is likely to find reasonable support at current level.

The Group acknowledges the impact of the climate change, the uncertainties of the global

economy, geopolitical tension, trade protectionism and discrimination on the demand for oil palm

products. However, the Group is confident that global population and per capita income growth

and the push for the expansion of biodiesel programme will drive greater demand for oil palm

products in the longer term.

Underpinned by its healthy cashflow and robust balance sheet with a net asset per share of

RM1.50 and net gearing of 0.01 times as at 31 March 2024, the Group will undertake new planting

at a steady pace on its unplanted land bank over the next few years to progressively expand its

planted hectarage. In addition, the Group will strive to improve its processes through

mechanisation and automation to improve efficiency and continue to seek strategic opportunities

within the green/sustainable segment to complement its long term shareholder value enhancement

initiatives.

Barring any unforeseen circumstances, the Group is cautiously optimistic of achieving

satisfactory performance for 2024.


Note: IB Banks have given "neutral or sell call on Tsh" 

HOWEVER


See this 

the Group is cautiously optimistic of achieving satisfactory performance for 2024.

And what is the definition of "OPTIMISTIC"?


See

optimistic

adjective

  1. disposed to take a favorable view of events or conditions and to expect the most favorable outcome.
  2. reflecting a favorable view of events and conditions and the expectation of a positive outcome; demonstrating optimism:

    an optimistic plan.

  3. of or relating to optimism.


TSH BOD (Board of Directors are OPTIMISTIC and certainly not neutral)

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