Jtiasa basically rented the plantation land while the rest owns the plantation land hence the discount

D328, Thanks for your insight. Wessex is really a rare gem...

D328, Unlike Wessex, Seraya Power has finite economic lifespan of 30 years which is ending in 2032 in accordance with EMA license

Revenue 79 mil but Inventories and receivables increased by 54 mil while payable shot up by 42 mil... Certainly a big big red flag

Most local IT Tech stocks are zero sum game or musical chair 'investnent' . Only to enrich investment banks, betting syndicates and remisiers.
Syndicate from Singapore would msg me giving me the target price to buy/sell.
Malaysia does not have the local IT Tech talent pool.
Invest in industry where Malaysia has competitive advantage.

Calvin, Thanks for sharing some valuable insights though a bit excessive and optimistic. Better than those who brag, self praise and belittle others in the forum....

Now that Texchem has turnaround the 4 pillars of its businesses. Hoping to see in near future explosive growth in its green polymer business which is now under test commercialisation with few key business partners apart from Otafuku sauce which I see increasing demand. The Annual report should shed more light into these venture capital businesses.

Texchem Mgt dd aggressive share buy back despite the impending ESOS. Most companies would suppress the share price Kudos to them

Also, bulk of Jtiasa plantation land is rented from major shareholder

CPO output over EV value would hv been a better metric instead of MC/hectare as the former will reflect plantation yiekd and gearibg

Now this half baked analyst wants to short sell plantation stocks... better don't make him angry

My only concern is that the receivables (145mil) and inventory (110mil) keep growing for the past few quarters. Hopefully, this is due to growing business turnover...

Don't think is a concern as weighted average transacted price is on the high side.. .. building momentum

Gerald, are factors1 & 2 your assumptions or are they factual

Expect concessions assets and sewerage construction project to contribute 2cts per share this quarter.

It has a sizable 47000 hectares of plantation land (99 years leasehold) in Sabah, out of which 12k hectares planted - 9k matured while 3k young.

Apart from this, it has hundreds of acres of development land in Kuala Selangor and Serendah. It also has investnent properties in Klang Valley and Singapore.
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Although it has net debt about 900 plus million, the debt are mainly for completed concession assets, which are currently generating healthy cash flow.

At the current price of 35.5 Puncak capitalisation is just about 150 million, which really undervalue considering its income generating potential and valuable assets.

Dec 2021 profit will be above 20cts will strong contributions from all segments from the strong Honda sales in this quarter, elevated palm oil price, resumption.of construction activities and demand of health care servicez

That is why despite my concerns, I do see potential in Texchem

All these were funded by internally generated funds and bank borrowing... Not thru placements

With the small capital of 130mil, Texchem has not only never stop growing but indulge itself in capital intensive business which require high R&D expenditure and long gestation period like green polymer and aqua culture

Generally, Texchem has respectable operating cash flow despite reporting mediocre profit to losses due to high depreciation charge

90% of the debt is due less than 1 year and for trade finance purpose. The fact that these are provided on an unsecured basis means Texchem is well rated by FIs. The long term debt has been declining to a negligible level.

Yes, let's wait for the current quarter result. Also, I hope to see the high inventory level, which is increasing for the past quarters come down.

With Omicron cases increasing, why is Texchem paying such high valuation for Sushi King.

Oh yes, MSWG please examine the deal with Yoshi to buy back Sushi King...

The next question is are there more surprises

As an investor, I would like the see all transactions, especially for related party,, done above board.

In this case, there was an outright share sale to Yoshi without any Put option.

However, Texchem appears to guarantee Yoshi by buying back the shares at the same price if investment is not up to expectation.

This is akin to Texchem failing to report a Contingent Liability.

No point having audited published account if investors have learn to be ''comfortable' with the Board decision based on gentlemen agreement.

Investing in KLSE would be taking a big bet due to lack of transparency and poor corporate governance.

I see Texchem potential but I am also disappointed by Texchem questionable decisions.

Why spend money on share buy back when the share price is near its historical 52 weeks peak.

ROI for the 102 mil is only 3% based on the best of the past 5 years Sushi King profit after tax 2+(2016 to 2020) This is the justification provided for the purchase price. Not convincing

Just compare berjaya food and sushi king

Texchem announcement fail to justify for the high price by comparing with peers valuation

28% of Sushi King for 102 mil is equivalent to paying 3 mil for each Sushi King outlet. Given Sushi King mediocre sales, it is much cheaper for texchem to open new outlets instead of buying up the 28% stake.

How can Oriental be a value trap when it has an expanding plantation and medical businesses apart from their profitable automative, plastic and quality property portfolios which are expected to recover post MCO. The term value trap is used loosely without understanding what it really means.

A company in cyclical business is value trap if caught at the wrong end of the cycle not a company that cobsistently delivers value with increasing dividend

While I agree with the potential spike of plantation stocks, I do find Calvin sometimes contradicts himself to justify the company he favours.

Why Oriental Holding

With net cash position of 4.50 per share, you are getting Oriental's 40k hectares oil palm plantation for free. Not to mention others profitable business ventures and its impressive portfolio of overseas assets.

Increasing dividend yield. Expecting 5%. Last quarter paid 10c despite direct impact on its automotive and hospitality industry. Expect higher dividend payment for quater ending december 2021

Down to earth but sure win business strateges focusing organic growth based on Oriental's business growth history

Based on its historical share price movement, target price of 6.50 to 7.00 is easily within reach in the next 6 months

Not a multi bagger but a good hedge against inflation and a long term investment

With close to a bil in its bank account, Insas will buy back Inari sold earlier if its when it falls back to its fair value. No one knows better than Insas,

On the contrary, depreciation of ringgit will boost export sales. Companies revenue including Dksh declined due to MCO restrictions

Barring further MCO, fitters will deliver a very strong result next quarter with the contnual improvement of its renewable energy business snd resumption of its construction sectors.

Dksh a good company but overpriced. Wait for correction... Same as success transformer, which has corrected

The current quarter maybe below expectation but it is on the right track.

Similar to TSH, JTiasa profit cannot be extrapolated directly from Cpo price movement as it is not a pure oil palm plantation business

Jaya Tiasa business, similar to TSH, is hybrid of oil palm and timber. Interestingly, 80% of Jaya Tiasa Total Liabilities is used to nurture its timber asset with a book value of just 13% of Jtiasa's Total Assets. I guess this the hidden value not appreciated by most of us. I believe Timber asset book value should the worth much more considering the liabilities incurred to nurture the timber business.

Anyway, dont expect good quarter

The seller is selling down all the way... Just wait

Regulators are toothless tiger and being challenged....

FMR Llc, which has 7% stake, could be selling off investment in Malaysia including Success as Malaysia is no longer favoured due to incompetent Govt and high level of corruption

A few mil revenue but share price can goreng up to RM5. Can only happen in Bursaland. Sadly,such companies are promoted in this forum to naive and greedy punters.

The captain of the industry is willing of pay 3.10 for Ijm plantation, which translates into EV/hectare of the planted area of 52k compared to 26K and 18k at current share price for SOP ( did not factor the value of downstream business) and Jaya Tiasa (did not include the 35k hectares of forest plantation) respectively. The EV/hectare is expected to dropped significantly if based on the coming Sept 2021 result.

Intrinsic just like a parrot copy and paste whatever posted by IB. Don't hv to trust or run down Calvin. Do your own research by looking at both the macro and micro levels, and if Calvin is misleading the public or talking nonsense debate over with facts and numbers. Grow up

Lucifer, what's wrong with Calvin sharing? There are some good insights and much better than what I get from IB reports. If you are annoyed,just don't read. Much better than many punters just spamming buy! buy! or sell! sell!

The 10% cut loss approach is for punters and encouraged by stock brokers as it makes good business sense for them. Serious investors would hv who know the business and financial well do not buy and sell on short term price volitility.

Goh,you discredit palm oil without knowing the full facts like a parrot mimicking the wise white protectionist. What a shame. Take some time to read up about the nutritional values of palm oil and understanding how sustainable oil palm will help against Global warming. Try to broaden your knowledge and outlook in life.