@ 12 noon
FCPO march +$263 to $6,769
FCPO Apr +$269 to $6,522
Many countries are scrambling to secure enough edible oil/food in the wake of Ukraine-Russia war ? There is no additional supply !

Buy the dip from the panic sellers.

@ 12 noon
FCPO march +$263 to $6,769
FCPO Apr +$269 to $6,522
Many countries are scrambling to secure enough edible oil/food in the wake of Ukraine-Russia war ? There is no additional supply !

Buy the dip from the panic sellers.

@ 12 noon
FCPO march +$263 to $6,769
FCPO Apr +$269 to $6,522
Many countries are scrambling to secure enough edible oil/food in the wake of Ukraine-Russia war ? There is no additional supply !

Buy the dip from the panic sellers.

FCPO march +$199 to $6,750
FCPO Apr +$192 to $6,445
Many countries is scrambling to secure enough edible oil in the wake of Ukraine-Russia war ? There is no additional supply !

FCPO march +$199 to $6,750
FCPO Apr +$192 to $6,445
Many countries is scrambling to secure enough edible oil in the wake of Ukraine-Russia war ? There is no additional supply !

FCPO march +$199 to $6,750
FCPO Apr +$192 to $6,445
Many countries is scrambling to secure enough edible oil in the wake of Ukraine-Russia war ? There is no additional supply !

FCPO march +$199 to $6,750
FCPO Apr +$192 to $6,445
Many countries is scrambling to secure enough edible oil in the wake of Ukraine-Russia war ? There is no additional supply !

@Contrarian, you are right. I looked at Axa/Affin as one unit.
Axa Affin General Insurance (AAGI) and Axa Affin Life Insurance (AALI) are about 50-50 owned by AXA and Affin respectively.
Assuming no other thing is involved, Affin may get about $275mil for divesting 20% stake in AAGI and AALI to Generali (Axa's $688 mil is for about 50% shareholding in AAGI and AALI).
Thus ,the theoretical consideration for MPI is $1,29 bil minus $688 mil minus $275 mil = $327 mil. This is lower than the 49% sold in a few years ago. Without further information , we are only guessing if Affin's portion is $275 mil. Affin's portion may be smaller then $275mil as they will be 30% owner of the enlarged/merged entity with Generali.

In any case, MPHBcap cash pile alone will be more than its present share price. No forgetting all the valuable landbank and property .

Hope to reap very good return in this share soon.

FY 2021 ending 30/9/21 ; Plantation division PBT was $101 mil (2020 $26 mil) , an increase of whopping 288! . The increase is based on FY2021 average realised CPO of merely $2,945.
FY 2022 : PBT contribution from plantation may exceed $180 mil due to much higher average realised price expected from Oct 21 to Sept 22 (Financial period).
All palms are at the prime years and yielding an average of 27.4 mt/ha of FFB compared to industry average of 20mt/ha. Very efficient planter.
Total FFB production FY 2021 was 441,000 MT equivalent to about 90,000 MT CPO which is significant.
NA is $2.95. The share is presently trading at 0.5X book value .
Strong cashflow, +$207 mil net cash from operations in FY 2021.
Property/housing development shall improved tremendously from FY2022.

Teh, pls share with us the rationale why you think so. To my understanding you can not book disposal gain until the transaction is concluded with payment received.

Posted by Teh Kieat Keoi > Feb 24, 2022 8:39 AM | Report Abuse

i think rm557,319,000 already included disposal gain rm250,000,000, no need repeat to plus up.

The roadblock at $1.10 is crossed ! I think it is quite easy to reach $1.50 soon . The share price is strongly supported by very high , possibly over 20 sen dividend in FY 2022.

With the insurance unit being separated in the financial accounts, there is a bit more clarity on how much cash and liquid investment will MPHBcap possess post insurance sales..

Simple estimations from a layman like me as shown below :

Asset classified held for disposal $2,906942,000
Liabilities held for disposal ($1,703,465,000)
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Nett $1,203,477,000

Less non-controlling interest ($646,158,000) ie Generali 49% portion
-------------------------------------------------------------------
Balance belong to MPHB $557,319,000

Plus disposal gain for the 51% sales $ 250,000,000
------------------------------------------------------------------------
(A) Total cash increase in MPHB coffer $807,000,000
=========================================

**Note : the disposal gain for the 49% in 2014 was $209 mil + adjustment of $20mil(?), Therefore i assigned est. disposal gain for the 51% at $250 mil.

Per account as at 31/12/2021, cash + liquid investment stands as below :

Receivable current (credit business) $128,000,000
Investment securities $289,000,000
cash $ 9,000,000
------------------------------------------------------------------------
(B) Total $426,000,000

To add (A) above $807,000,000
---------------------------------------------------------------------------
(A+B) Grand total $1,233,000,000

@715 mil shares = $1.72 per share !!! which is higher than MPHBcap share price of $1.36 .

Any professional accountant here can verify if my layman's calculation make sense ??

TheContrarian, total consideration is RM1.29 billion!

GENERALI SIGNS AGREEMENT IN MALAYSIA TO ACQUIRE MAJORITY STAKE IN AXA AFFIN JOINT VENTURES AND PLANS TO PURCHASE 100% OF MPI GENERALI
22 JUNE 2021 - 07:02

The transactions transform Generali’s activities in Malaysia to become the #2 P&C insurer in the country, in line with its strategy to strengthen its leadership position in high potential markets
Generali to increase its current 49% stake in MPI Generali Insurans Berhad to 100%
Generali to acquire a 70% stake in AXA Affin Life Insurance joint venture (49% from AXA and 21% from Affin) and approximately a 53% stake in AXA Affin General Insurance joint venture (49.99% from AXA and 3% from Affin and minorities)
AXA Affin General Insurance and MPI Generali to be merged following the acquisitions creating one of Malaysia’s leading general insurance operations, with Generali holding a 70% stake
Milan – Generali has signed an agreement in connection with the purchase of the majority of the shares held by AXA and Affin in the joint ventures, approximately 53% of AXA Affin General Insurance Berhad (49.99% from AXA and 3% from Affin and minorities) and AXA Affin Life Insurance Berhad (49% from AXA and 21% from Affin), respectively.
The Group also submitted an application to the local regulator in order to acquire the remaining shares of MPI Generali Insurans Berhad (MPI Generali) held by its Malaysian joint venture partner, Multi-Purpose Capital Holdings Berhad (MPHB Capital). The transactions are subject to the approval of the Malaysian Minister of Finance and the Central Bank of Malaysia.

The total consideration for the combined transactions is of RM 1,290 million (€ 262 million1) subject to closing adjustments.

@plantermen, from what you wrote i can tell that you are genuinely a planter. cheers!

the 49% was sold for $356 mil + some $20 mil (?) adjustment too. That was based on 2.45X price to book ratio.

I guess the remaining 51% may be based on the same valuation basis. If it is indeed based on same 2.45X price to book ratio, the 51% will fetch substantially more as the insurance unit book value has also gone higher considerably with 7-8 years of retained earnings.

WTK has very little exposure in oil palm. Better switch out to many other plantation counters which are still very cheap like Bplant, MHC, Cepat, Taann, SOP, swkplant, Hsplant.
MKH , a housing developer has much bigger exposure in oil palm with about 17,000 ha very high yielding mature oil palm in kalimatan. Very significant contribution from oil palm segment while housing segment is improving.

labour shortage may cause 5% production loss. But 5% CPO supply shortage amid already very tight inventory level can cause 30% price surge. The consumers end up paying a lot more for labour shortage problem, not the plantations. Hahahaha.....

Per financial report as at 31/12/2021, the insurance unit is classified as discontinuing operations..
Consequently, the balance sheet as at 31/12/21 reflects Asset held for sales of $2.906,942,000 and Liability held for sales of $1,741,895,000 . That's totally separating the insurance from the assets and liablities of the remaining business/subsidiaries.

To me the complete insurance disposal is a done deal. Everyone is free to draw your own conclusion at no charge . Hahaha.....

@titan, you better learn to analyse financial report before shooting wrong thing.

Q4 2021 EPS is affacted by the $11.8 mil reversal of fair value change of biological asset.

you should look at QOQ comparison as below :
Q4 2021 operating profit before tax and fair value change of biological asset is $ 56.9 mil. Whereas 3Q2021 was $39.2 mil.
As such , QOQ increase in PBT is 45.2% increase (56.9/39.2)

@Huatexpert, very good observation from you.
Q4 2021 profit could have been higher meeting my estimate if not for the $11.8 mil reversal of fair value change.

QOQ comparison :
Q4 2021 operating profit before tax and fair value change of biological asset is $ 56.9 mil. Whereas 3Q2021 was $39.2 mil.
As such , QOQ increase in PBT is 45.2% increase (56.9/39.2)

Q4 EPS of 11.7sen is below my expectation, though it is an increase 95% YOY. 3rd interim dividend of 5sen is good.

FY2021 EPS is 45.81sen up 108% YOY. Total dividend so far adds up to 20sen which is up by 100% YOY.
PE is 6.9X based on today's closing. DY is 6.3% is still considered good. It is a net cash company and shall afford to pay higher dividend in future.

3rd interim is ex 9/3 which is very quick. Do we expect final divided before AGM ? Hopefully so.

I aim TP of $6.80 for this counter.

Q4 EPS 11.8sen and dividend 15.5sen is excellent.
Realized avg CPO selling price for Q4 $5,103 which is excellent.

FY2021 EPS 28.01 sen exceed my estimates. Total dividend FY2021 is 17sen. Dividend payout is 60% following the policy consistently.
PE is only 8.4x based on today closing price of $2.35.
DY is 7.2% is deemed very generous.
Also note that ex date for the 15.5sen dividend go ex 9/3/2022 which is very quick action by the Company.
Important to note that the company is sitting with $418 mil solid cash without any borrowing!

I think FY2022 earning and Dividend will be surpass FY2021 by 50%! This share shall worth over $4.00.

I have no worries to add more at 83-84sen. The QR is grossly misunderstood.

The best yet to come in 2022! HSpltn is seriously undervalued at today’s price.

Wow! EPS for Q4 is almost 12sen. 2nd interim dividend is 15.5sen!

Future for glove is over as the industry is troubled with huge overcapacity . You know the answer by just looking at the Dec qtr results of some glove companies

KMloong will pay out all earnings as cash dividend. Can expect record high dividend for 2022.

Taann has the best of 2 worlds: CPO is so robust, timber / plywood price is very high too!
Forecast earnings will exceed $1 per share should CPO and timber price hold steady for 2-3 qtrs .

Cepat will soon catch up . It should worth a lot more than 90sen.

Palm oil is one of the biggest beneficiary. Don’t ignore it.

Someone try to place roadblock at $1.10!
Once this is cleared , I believe it is on road to $1.50 in a matter of a 2-3 weeks.

Don’t miss this gem!

Don’t miss MKH too.

Ya, profit from plantation will bolster AZRB.

in the context of Bursa, Upstream palm oil companies, steel/aluminium producers, Oil and gas producers will do exceptional well amid escalation of Ukraine-Russia conflict. Take refuge in these sectors amid heightened volatility .

Important to consider if the Management is consistently paying reasonable cash dividend from the cash hoarding . If they don't, minorities will not get to enjoy it and the share will remain undervalued for a long time.
( DY yiled of 4-5% is deemed reasonable to me ).

Do you guys notice that the 4th interim is going ex on 10/3 ! The management is very quick.
Ya, don't rule out special dividend in view of expected robust Q1 2022 results and 15sen/share capital gain from Kulai estate land which is already in pocket.
More asset monetisation to come in 2022.

hahaha.....He doesn't even bother to find out the numbers before commenting.

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Posted by Hafid > Feb 23, 2022 7:03 AM | Report Abuse

labour issue. high FFB price also could not makeup the loss in production and thus the earning directly.

If the privatization offer is to be made, THP should do it very soon ,so that EGM to approve it can be concluded well before Q1 2022 result is released by end May. Just my personal view.

Just keep in mind that Bplant’s dividend for FY2022 shall be explosive!

I certainly don’t want to rule out this possibility.
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Posted by amtheng > Feb 22, 2022 10:02 PM | Report Abuse

Is there a suggestion that this accounting change is to lower the stock price and the privatisation will come cheap for THPlant

Don't waste time on this counter. There are many more undervalued plantation stocks to pick

The 4th qtr result also affected by the much higher Cost of sales by $49mil. Don't quite understand why ?
Finance cost increase by 12mil due to drawdown of $300 mil sukuk since 2nd qtr and incurring additional interest.
Cash is 260 mil .Why is there need to standby such much cash thru borrowing since 2nd qtr 2021 ? Up to everyone to make speculate.

Why is the change of accounting treatment in Q4? UPto everyone to make intelligent guess.

what Calvin elaborated is correct. THplant's Q4 2021 result is indeed very good if there is no -ve $56.6mil fair value change in biological assets.
In Q4 2021, the company decide to CHANGE THE ACCOUNTING TREATMENT in fair value accrual on biologically asset ( ie immature FFB on the trees). Prior to Q4 2021, the company made accrual for immature FFB upto 3 months before harvesting. Now the company decide to only accrual for immature FFB that are ready to be harvested in 1 month only. This has resulted reversal of all the previous qtrs accruals.
In Q4 2021, there is +ve $7.5 mil of fair value change for the forestry segment was recognised . -ve $64.1 mil (reversal) in fair value change for Oil palm segment. Overall change is therefeore -ve 56.6 mil (+7.5 -
64.1mil).

The accounting change is one off thing and has no impact to future qtr result.
If we add back the fair value change reversal for oil palm of -ve $64.10 mil, PBT Q4 2021 would be 11.2+ 64.1 = 75.30 mil which in fact very impressive.

Average realized CPO selling price for Q4 is $4,508 which is in fact better than many big guys.

I think Bplant is stronger in most parameters .
Jtiasa also a beneficiary from the CPO bulls .

Receive good amount of cash dividend from the company’s profit is definitely different from selling your own share to pay yourself. Already, the current share + the total cash dividend received in the past 2 years for the 2 companies already tell you the difference. Bear in mind that the huge freehold development land bank of Bplant in west Malaysia is something Jtiasa can not match.
I share my honest view between the two. Choice is absolutely yours .
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Posted by Kang Yao > Feb 22, 2022 12:28 PM | Report Abuse

@johnzhang if you want cash in pocket, just unload some share when price up, its the same with paying dividend

A lot more valuable development land to monetize progressively.
Just lock up my Bplant share and revisit in 6 months time . That’s my strategy to allow time for it ‘mature’.

Why sell plantation stock amid possible Ukraine-Russia war ? you should take refuge in plantation stock as CPO will be the big beneficiary .

No need to expect CPO keep going up. Plantations will make a new record amount of profit even if average price of $5,000 is achieved for 2022. Let's be realistic and don't over react to the day-to-day or week-to-week CPO price movement.