THE INVESTMENT APPROACH OF CALVIN TAN

RESULTS OF UNITED PLANT, CHINTECK PLANTATION & SARAWAK OIL PALM TELL US THAT WE SHOULD UPGRADE PALM OIL TO OVERWEIGHT, Calvin Tan

calvintaneng
Publish date: Wed, 31 Jul 2024, 07:27 AM
calvintaneng
0 1,844
Hi Guys,

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

Dear friends of i3 Forum,


I  called my KL Remisier of 30 Years and asked, "After knowing you for more than 30 long years could you please be very honest and tell me after these 30 long years how many of your clients actually made money from the Stock Market? I want a frank and honest answer please?"


And this was his Awful Heart Wrenching Reply, "AFTER 30 LONG YEARS BEING A REMISIER FOR TENS OF THOUSANDS OF CLIENTS UP TO 99% HAVE LOST MONEY"


Then who is that person who made? He replied, "The only one who made money is the one who bought Blue Chip to collect dividends & seldom trade"


WOW! WOW!! WOW!!!


I was also losing until cannot see the road when I was in KL the 1st 15 years

I remember in those early years I greedily wait for his Research House monthly Recommended Stocks Plus also looking at published media recommendations. Oh Boy! Looking back on hindsight i have made a huge mistake by following them


After 15 years I left for Johor/ Singapore. Here i met my Johor Sifu. He told me to succeed we must do our Own Research


And that was how I earned back all my losses and finally in the black.


Away from the maddening crowd who chased "hot stocks" of inferior value I managed to make back


And now since Research Houses generally Gave Neutral Calls on Palm oil with help of constant reminder by Media to give neutral call as well on Palm Oil

I have generally taken an opposite stand (though lonely with few followings) I feel very compensated as PALM OIL STOCKS have performed ok. These ones were even taken private at good prices = Tmakmur, Kulim, Kwantas, Ijm Plant & Boustead Plantation

All taken private at good premium prices. And none were recommended by Research Houses


And now we see PALM OIL STOCKS ARE DOING EXCELLENT


See United Plant, Chinteck Plant & Sarawak Oil Palm


1) UNITED PLANT

Refer Bursa Website)

SUMMARY OF KEY FINANCIAL INFORMATION

30 Jun 2024

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Jun 2024
30 Jun 2023
30 Jun 2024
30 Jun 2023
$$'000
$$'000
$$'000
$$'000
1
Revenue
546,076
470,074
1,022,823
930,061
2
Profit/(loss) before tax
239,205
207,171
417,653
357,205
3
Profit/(loss) for the period
187,134
159,995
320,669
272,454
4
Profit/(loss) attributable to ordinary equity holders of the parent
185,936
159,015
318,808
271,105
5
Basic earnings/(loss) per share (Subunit)
44.83
38.34
76.86
65.36
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 ($$)
6.4700
6.8600


At 44.83 sen profit

Annualised 44.83 X 4 

= Rm179.20


Current price Rm26.10


P/E is 14.56


See its dividend



For year 2023 it gave a total dividend of Rm1.80 or 6.89%

This is better than twice Bank FD Rate



2) CHINTECK


SUMMARY OF KEY FINANCIAL INFORMATION

31 May 2024

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

31 May 2024
31 May 2023
31 May 2024
31 May 2023
$$'000
$$'000
$$'000
$$'000
1
Revenue
66,646
47,032
181,089
156,132
2
Profit/(loss) before tax
30,162
13,772
84,147
50,454
3
Profit/(loss) for the period
22,685
11,441
64,812
39,657
4
Profit/(loss) attributable to ordinary equity holders of the parent
22,685
11,441
64,812
39,657
5
Basic earnings/(loss) per share (Subunit)
24.83
12.52
70.94
43.41
6
Proposed/Declared dividend per share (Subunit)
28.00
10.00
40.00
20.00
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 ($$)
10.0500
9.4000


This qtr profit 24.83 sen

Annualised 24.83X4

= 99.32 sen

Current price Rm7.87

P/E = 7.92


See Chinteck dividend


Total dividend is 40 sen or 5%



3) UNITED MALACCA


SUMMARY OF KEY FINANCIAL INFORMATION

30 Apr 2024

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Apr 2024
30 Apr 2023
30 Apr 2024
30 Apr 2023
$$'000
$$'000
$$'000
$$'000
1
Revenue
171,486
135,299
595,640
604,497
2
Profit/(loss) before tax
24,165
13,400
74,727
82,221
3
Profit/(loss) for the period
13,811
7,870
48,009
55,521
4
Profit/(loss) attributable to ordinary equity holders of the parent
15,295
8,602
50,663
61,326
5
Basic earnings/(loss) per share (Subunit)
7.29
4.10
24.15
29.24
6
Proposed/Declared dividend per share (Subunit)
7.00
7.00
12.00
12.00
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 ($$)
6.9200
6.8400



3) SARAWAK OIL PALM

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
1,325,473
1,207,025
1,325,473
1,207,025
2
Profit/(loss) before tax
112,378
67,455
112,378
67,455
3
Profit/(loss) for the period
83,482
46,668
83,482
46,668
4
Profit/(loss) attributable to ordinary equity holders of the parent
79,460
44,172
79,460
44,172
5
Basic earnings/(loss) per share (Subunit)
8.92
4.96
8.92
4.96
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 ($$)
4.0400
3.9500

This qtr 8.92 sen

Annualised 4 X 8.92

= 35.68 sen

At Rm2.91

P/E = 8.15

It is also selling below Net Asset Value of Rm4.04

And its Assets are 300,000 Acres of Palm Oil Lands or 4 X Penang Island size of 72,900 Acres


See


Penang island map hi-res stock photography and images - Alamy












These three examples show Palm Oil Stocks got good P/E, Assets of Value & Dividends


As a Rule If these three are doing well the Rest should Follow

Palm oil generally produce more or less amount of FFB and prices subject to market forces

Plus with demand for Palm oil lands for Solar Farm, Data Center or Industries there are lots of potential


From above examples do you think Research Houses & Media assigning "NEUTRAL" for Palm Oil is right or wrong


You be the Judge Yourself


With Warm Regards


Calvin Tan


Please buy or sell after doing your own due diligence or consult your Remisier/Fund Manager


Note: The Richest Man in Malaysia is Robert Kuok. Do you think he is neutral on Palm Oil?


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