Dear Friends of I3 Forum,

In Palm Oil we are now into the 4th Year of Investing since selling off all Gloves in year 2020 to buy Palm Oil Shares

So we have garnered a little knowledge on the in-workings and out-workings of the Palm Oil Industries

Here we will compare TSH RESOURCES VERSUS JOHOR PLANTATION GROUP 

First a recap. Johor Plantation Group was once called Kulim

We bought Kulim at Rm2.50 & Jcorp took Kulim private at Rm4,10 (For a nice 60% gain)

After having taken Kulim private Jcorp hived off 2 estates in Pegerang & Converted them into Townships

AND NOW KULIM IS RELISTED AS JOHOR PLANTATION GROUP AT 84 SEN

SO FAR SO GOOD. JPG IS NOW 95.5 SEN OR UP 13.6% SINCE LISTING

WE WILL NOW DO A COMPARISON BETWEEN TSH RESOURCES & JOHOR PLANTATION GROUP

PLEASE REFER TO BURSA REPORT BY JPG LATEST QUARTER TO SEE ALL THE FACTS & FIGURES REVEALED

TSH RESOURCES

SEE ITS LATEST RESULTS

Cash and bank balances RM 255,825,000

Short term funds RM2,888,000

Other current assets RM7,889,000

Investment in an associate RM78,086,000

Investments in joint ventures RM101,349,000

ABOVE ARE CASH AND CASH EQIVALENTS

TOTAL = RM446,037,000

OR RM446.037 MILLIONS

NOW LOOK AT DEBT

Non-current liabilities

Loans and Borrowings RM98,779,000

Current Liabilities

Loans and Borrowings RM174,707,000

TOTAL DEBT = RM273,486,000

OR RM273.486 MILLIONS

CASH/CASH EQUIVALENT LESS DEBT

= RM172.551 MILLIONS

WE SEE TSH REOURCES A CASH POSITIVE COMPANY

NOW TSH'S INVESTMENT IN ASSOCIATES ARE ACTUALLY SHARES IN INNOPRISE PLANT (STATED AT COST & NOT YET REMASURED)

ACTUAL SHARES ARE 105 MILLIONS AND INNO SHARE PRICE CURRENTLY IS RM1.43

SO 105,000 X 1,430

= RM150.150 MILLIONS

Investment in an associate RM78,086,000

THAT MEANS IF WE UPDATE THE REAL TIME ACCOUNTS OF TSH

RM150.150 MILLIONS LESS RM78.086 MILLIONS

= RM72.064 MILLLIONS (REMEASUREMENT GAIN)

THEN TOTAL CASH/CASH EQUIVALENT WILL BE

RM72.064 MILLIONS +  RM172.551 MILLIONS

= RM244.615 MILLLIONS

NOW NOTE VERY VERY VERY CAREFULLY

REFER BURSA

TSH RESOURCES BERHAD

Registration No : 197901005269 (49548-D)

(Incorporated in Malaysia)

Condensed Consolidated Statement of Financial Position

As at 31 March 2024

Assets held for sale..................RM 222,240,000

THESE ASSETS REFER TO FINAL PORTION OF BULUGAN LANDS TO BE SOLD

ABOUT 13,338 ACRES

IF SOLD THEN THE CASH/CASH EQUIVALENT POSITION WILL BE

RM244.615 MILLIONS + RM222,240,000

= RM466.855 MILLIONS

AND HOW MUCH IS THIS EQUIVALENT TO CASH PER SHARE?

THE ANSWER IS 33.7 SEN 

SO TSH RESOURCES HAS A VERY HEALTHY BALANCE SHEET

WITH CASH EQUIVALENT OF 33.7 SEN PER SHARE

NO WONDER EASTSPRING FUND, SPORE DBS BANK, PUBLIC MUTUAL FUNDS AND OTHERS HAVE BOUGHT UP CHUNKS OF TSH RESOURCES SHARES

NOW GO SEE JPG BALANCE SHEET

AGAIN PLEASE REFER TO BURSA

Cash and cash equivalents...RM 78,749,000

Other investments................RM 26,385,000

CASH AND CASH EQUIVALENT

= RM105,134,000

ABOUT RM105.134 MILLIONS

NOW SEE ITS DEBTS (REFER BURSA)

Borrowings RM1,367,100,000 (NON CURRENT)

Borrowings RM203,460,000 (CURRENT)

TOTAL DEBT = RM1.57 BILLIONS DEBT

DEBT LESS CASH

= RM1.465 BILLIONS BORROWINGS

THIS HIGH DEBT OF OVER RM1.4 BILLIONS WAS WHAT TSH GOT 5 YEARS AGO

THANKFULLY, TSH HAS  MANAGED TO CLEAR OFF ALL ITS DEBTS BY NOW

HOW?

TSH SOLD OFF 2 ASSETS (SABAH & BULUGAN FOR ALMOST RM1 BILLIIONS CASH TO SETTLE ITS DEBT)

WHILE JPG HIVED OFF TWO OF ITS ESTATES IN PENGERANG TO DO TOWNSHIPS

THAT IS WHY WHILE TSH GOT ITS RM1.5 BILLIONS DEBT SETTLED

 JPG NOW GOT ALMOST RM1,5 BILLIONS TO BE SETTLED

HOW?

BY WAY OF IPO

IT IS STATED THAT PART OF CAPITAL RAISED IN IPO WILL BE USED TO SETTLE LOANS

AND PART OF CAPITAL WILL BE USED TO SET UP DOWNSTREAM PALM OIL REFINERY (TSH HAS ALREADY DONE )

BUT LOOK FURTHER IN JPG BALANCE SHEET

Deferred tax liabilities.....RM 458,821,000

HIDDEN IN THE BALANCE SHEET OF JPG IS RM458.8 MILLIONS DEFERRED TAX LIABILITIES WHICH WILL NEED TO BE PAID SOMEDAY

AND TSH?

SEE

Deferred tax liabilities.....RM 85,776,000

ONLY 18.6% of JPG

AND COULD BE EASILY SETTLED BY ITS STRONG EARNINGS AS TSH YEARLY DEBT WILL SOON BE MINIMAL WITH STRONG CASH SURPLUS

SO FROM HERE WE SEE TSH TOTAL NET CASH/CASH EQUIVALENT IS ALMOST RM400 MILLIONS CASH POSITIVE

WHILE JPG TOTAL LIABILITIES IS NEAR RM2 BILLIONS IF TAX LIABILITIES INCLUDED

So if JPG is worth 95.5 sen TSH should be worth far more

TSH Current price Rm1.21

Our first target price is Rm1.50

Next Rm2.00

And Rm3.00 to Rm5.00 if any more assets are disposed in Ikn Nusantara to unlock value

WITH KIND REGARDS

Calvin Tan

Please do your own due diligence or  consult your Remisier/Fund Manager before buying or selling

IF STILL NOT SURE GET ACCOUNTANT/AUDITOR TO DO AN AUDIT