Dear friends of i3 Forum

We are indeed very happy to see the Latest Good Results of TSH. We are even more excited that TSH has declared an Interim dividend of 2.5 sen (Making it a total of 5 sen in one year) This shows what we learnt from a post in Bumitama Forum Singapore

See

This was posted in year 2014

Now 2023 CPO crossed Rm4500

AND TIME FOR AUTO PILOT DIVIDEND CASH PAY OUT FOR NEXT DECADE

See

kelvin_ik4u Plam oil is always like that, start plant require cash/fund/debts to build empire. Once it empire steady and cash generated machine, it will be an auto-pilot for next 18yrs. This counter will be the next shine palm oil for this year.. it's CAGR 21% compounding for next 3 yrs, now Bumitama just sit and collect money as all it palm tree is 6-7yrs now with FFB nucleus oil >24%, 107% growth vs Q1'FY13. Strongly believe this counter will start give dividents moving forward. Since CPO price is up ard ~RM2700/tan metric, I believe will share price will skyrocket this yr. Target $2.00 before end of this year 2014.

Calvin continues:

Palm oil starts with Cash/ Fund/ Debts to build empire

Yes correct. By virtue of Palm oil needs tens of thousands or hundreds of thousand acres of lands for planting

It needs lots and lots of borrowings

And many years are needed to pay off loans. After that Palm oil trees matured plus all debts paid off

For the next 18 years it will be "Cash generating Machine" on Auto-pilot"

That was why we see Cold Eye aka Fong Siling bought INNO shares

In year 2020 we Sold Off all Gloves & Ventured into Palm Oil

We bought Jaya Tiasa at 63 sen when it was still full of debts. But we saw Jtiasa balance improving

Then in year 2021 we saw Fong Siling bought 5 million shares of Jtiasa. Next year in 2022 he bought another 5 million Jaya Shares to make it 10 millions. In 2023 he owned a total of 12 million Jtiasa shares

Mr Market took notice and chased Jtiasa over Rm1.10 (he bought below Rm1.00 while Eagle Vision First Mover Group bought as low as 63 sen

See Jtiasa dividend

Refer Bursa

So far for year 2024 Jtiasa has given a total dividend of 6 sen

Now see Tsh (refer bursa)

TSH for many years used to pay A First and Final Dividend

Lately it started to pay interim dividend as well

So there will be more to come

Now see INNO

As we can see Fong Siling saw INNO started giving copious dividends in INNO he took position

And INNO share price shot to from 50 sen to Rm1.70

The time has now come for TSH

INNO is managed by TSH BOD. Tsh has 105 Million shares of Inno with 21.95%

THE TIME HAS NOW COME FOR TSH

TSH IS THE STOCK WHOSE TIME HAS COME

In Coming Years of Annual Reports will we see Fong Siling in TSH Top 30?

Yet to be seen

Now let's take a deeper look at TSH (Refer Bursa)

TSH earned 2.4 sen this qtr

But it is able to give 2.5 sen interim dividend

Why pay out more than it earned?

Management must be sanguine knowing TSH will earn much much more ahead

How come?

Let us look at TSH balance sheet

Revenue Rm231,936,000

Cost of sales (Rm145,082,000)

Gross profit Rm86,854,000

How many percent?

Rm86,854,000 divides by Rm231,936,000

= 37.4% Gross Profit Margin

(This is far better than 99 Speedmart razor thin profit of 4.2% or Dlady at 6.1%)

Where Did TSH derived its Profits

TSH Has 5 INCOME STREAMS

1) PROFIT FROM OPERATION (See Balance sheet)

Operating profit  Rm47,049,000

By sale of FFB, CPO, Rubber & Timber

​

2) PROFIT FROM DIVIDEND RECEIVED FROM INNO (Its Associates)

Share of profit of an associate, net of tax : Rm4,743,000

3) PROFIT FROM ITS 50/50 JV WITH WILMAR IN SABAH REFINERY

Share of profit/(loss) of joint ventures, net of tax:  Rm599,000

Due to High FFB price Refinery Business made less (That tells us Downstream Processing No Good when CPO prices are high like now)

Now

Unrecognized Profit

TSH's 105 MILLION Shares of INNO has Appreciated by How Much in One year?

Refer Chart

YES INNO PRICE IS UP BY 39 SEN

SO THERE IS A REMEASUREMENT GAIN OF 39 PER INNO SHARE OWNED BY TSH

At 105 Million INNO Shares

It is

Rm390 X 105,000

= Rm40.95 Millions

Now this is A Gain From Price Appreciation

But Tsh did not do a Remeasurement Gain as Its Investment is very long term

But that is a Gain nevertheless

5) THE GOLD MINE LANDS OF TSH

TSH Has 13,338 Acres in Kipi Tanah Kuning, Bulugan

Book value Rm16.5K an acre

Now Industrial lands are worth Millions in Batu Kawan, Sedenak, Selangor and others

Indonesia is also industrializing

And can we expect at least Rm100,000 per acre or more if TSH should sell one day

But the Mother of All Assets are 94,700 Acres (about 1/2 of Spore landmass of 180,000 acres)

Book value as low as Rm4.5K per acre

In Bongan, Kutai West the Unbelievable asking price now is as high as Rm1 Milllion or More

WARM REGARDS

Calvin Tan

Please buy or sell after doing your own due diligence

Or consult your Remisier/Fund Manager