KUALA LUMPUR (July 13): Lembaga Tabung Angkatan Tentera (LTAT) should not be sentimental towards businesses under its portfolio in a restructuring to unlock value pursuant to the newly-announced multi-year strategy, said Minister of Defence Datuk Seri Mohamad Hasan.
“In the corporate world, survival of the fittest is a ‘dog eat dog’ business, so there is no such thing as mercy or whatever it is. That’s why I said, put our sentiment aside when do business,” he told reporters after attending the launch of the Sustainable25 strategy here on Thursday (July 13).
“We cannot say we are sentimental towards something, or this is our ‘flagship’. There is no such thing as flagship, it is survival. So, how do we survive such challenging times, with the interest rate differential? US interest is 5% [versus] our 3% and so on. So how do we manage the situation, so that we remain relevant,” he said.

Asked if the restructuring would involve divesting Boustead Plantation Bhd or Boustead Petroleum Marketing Sdn Bhd (BHPetrol), Tok Mat, as he is fondly known, said “in business, what is important is that we make money; we do business to get returns”.
“There is no point in retaining business if you are going to lose money.
“The important thing is to look at our assets. There are assets such as those of ‘planting trees on a gold mine’, so we have to unlock that because this is the process for adding value,” he added.

The important point from above news :
1. Increase the AUM from $9.3 bil now to $15bil by 2025. How to increase $5.7 bil unless making huge disposal or investment gain !

2. Reduce boustead-related investments from present 39% to 15% by 2025. That means a lot of investment or asset under Boustead will be sold !
Bplant will be the major one to be sold !

KUALA LUMPUR (July 13): Lembaga Tabung Angkatan Tentera (LTAT) launched a multi-year strategy through 2025, aiming for an asset under management (AUM) of RM15 billion, growing the fund with sustained 5% returns for members, as well as recovering RM3.3 billion cost of investment in beleaguered Boustead-related businesses.
The Armed Forces Fund Board said in a statement on Thursday (July 13) that its AUM stood at RM9.3 billion as at May 2023.
The fund also hopes to diversify its concentration of asset allocation on Boustead-related investments, from 39% currently to 15% by 2025.

Speakup, who to believe? I believe in myself. Hahaha…

Pang, can not calculate like that lah . But I like your calculation. Hahaha
For such generous price ALR offered to acquire the soon expired concession, it may means that toll business in Malaysia is very profitable.

——————————————————
Pang72 wrote:
Thanks John for additional point.
With $6.6 mil per km per concession year, WCE worth 6.6x233x50= rm76, 890mils.

This translate to rm25. 70 per share!!!!

Shit! This is the 天文数字！！

Felix of WCE recently estimated 300,000 daily road users once the expressway is fully completed next year. Assuming this man on the job is realistic on his numbers, we shall
make a guess of the WCE's revenue for FY 2025.
For simplicity, let's use present Plus toll rate Taiping to Bukit Raja (klang) as equivalent to WCE full stretch (Taiping - Banting):
Class 1 (passenger 2-axle car) $30.42
Class 2 (2 axle truck) $55.50
Class 3 (3 or more axles truck) $74.10
Class 4 (taxi) $15.17
Class 5 (buses) $22.80
Assuming composition of vehicle classes is (70/10/10/5/5), the weighted average toll rate for full stretch is therefore $36.15 per user or $0.155 per user per km ($36.15/233km)
We will have users travelling long and short haul. Let's assume, the average distance travelled per user is 1/4 of the full stretch ( 233/4 =58 km only)

Toll revenue FY 2025 = 300,000 daily users x 365 days x 58km x $0.155 = $984 millions !
Operation cost before interest $200 mil/year ??
Interest expense (4% x 5bil ) $200 mil/year ??
That means, WCE will be profitable right from 1st year of highway fully opened.

in 2022 ALR paid the following generous amount to take over the soon to be expired highway concessions (let's omit Smart in the discussion) :
$1.19 bil for Kesas , 57.5 km concession expiring 2023(1 year left from 2022)
$2.21 bil for LDP, 40km concession expiring 2030 (8 years left from 2022)
$863 mil for Sprint ,26.5 km , concession expiring 2031/2034 (avg 10 years left)
Total sum paid for 3 highways = $4,263 mil
Total length for 3 highways = 124 km
Remaining concession live (weighted avg basis) = 5.2 years only !
(Note ; once concession expire, no toll would be collected)

Let's factor in the distance and concession remaining live into the equation :
ALR paid $4,263 mils for 124 km and for 5.2 years concession, ie $6.6 mil per km per concession year !

WCE is 233 km and remaining concession is 40+10 years (concession runs from 2013, 10 years lost!) . How much should it potentially worth ??

顺顺利利。
牛气即将冲天?

Inside Bplant’s estates this morning,
Cricket is not chirping
Cow is not mooing
Something brewing?
Hahaha….

Didn’t you hear cow mooing? Hehehe….

Oh Mr Brian, any prize for convincing a cow like you ? Hehehe….
I am just stating my opinion in a public forum .

The chartist may say price consolidation today ! But it may well be testing new high today!
Don’t take the charts as gospel. It is highly manipulated for you to see .

Brian, chart is for short term traders who hope to pocket small gain from trading . It is useless for long term investor . I wonder how the chart can tell you an impending M&A or any corporate excercise .

Dick, I am hoping for 60 sen lah . Hahaha

Don’t be fooled by technical charts which are often ‘manipulated’ by powerful operators for man on the street to believe . Chart can only be trading guide in an efficient market and in stock and market with good liquidity. For Bursa , I have my big big reservation.
Just my view !

In an efficient market, stock price should price in future potential or future earnings of the stock . On this basis, over $1.00 price is within reach soon!

If you think the best proposal is only $1.20, $1.30 or $1.50 , you better dump your stock now ! Boustead/LTAT will not accept such low offer and hence no deal !
I think a price over $2.00 is only palatable to LTAT.

I have no doubt market operators (or syndicates as you like to call them ) are in action. Why Bplant, a plantation stock that had never been in the limelight of operators? It’s on the back of an impending M&A! Operators possess information about the deal .

If you believe stock market is forward looking, wCE should worth many times more now even if calculated at present value. Traffic volume grows over the years .

Brianklc, I am not saying the successful acquirer must be YTL. It can also be others .
You got to think of the unthinkable!

Brianklc, YTL can divest the ‘excess ‘ land to plantation companies , property developers or industrial user based on the suitability of the lands and eventually make a lot of gains. YTL has very deep pockets.

1/3 of the 30 top gainers are plantation counters! It’s plantation stock driving the gain .

rohank71, what make you think that I am joking ? Haha 😆

Very bullish outlook for CPO. This itself is enough to justify Bplant’s valuation to $1.20.
Acquirer will ultimately pay more .

Malaysian palm oil futures jumped more than 4.5% to around MYR 3,950 per tonne, rising for the third straight session while approaching their highest level in three months, due to a rally in rival soyoil on concerns over smaller US planting and inventories. The US Department of Agriculture Friday reported much lower-than-expected 2023 soy plantings and June 1st stocks. Meantime, Russia’s envoy to the United Nations in Geneva said there were no grounds to maintain the “status quo” of the Black Sea grain deal that is set to expire on July 18th, according to the Russian news outlet Izvestia said. On the supply side, exports of Malaysian palm oil products for June fell 6.9%, cargo surveyor Intertek Testing Services reported. Another cargo surveyor, AmSpec Agri Malaysia, said exports rose 0.6%. Meantime, Indonesia plans to raise its mandatory palm oil-based biodiesel blending to 40% in the next few years after increasing it from 30% to 35% in February. .

Very bullish outlook for CPO !

Malaysian palm oil futures jumped more than 4.5% to around MYR 3,950 per tonne, rising for the third straight session while approaching their highest level in three months, due to a rally in rival soyoil on concerns over smaller US planting and inventories. The US Department of Agriculture Friday reported much lower-than-expected 2023 soy plantings and June 1st stocks. Meantime, Russia’s envoy to the United Nations in Geneva said there were no grounds to maintain the “status quo” of the Black Sea grain deal that is set to expire on July 18th, according to the Russian news outlet Izvestia said. On the supply side, exports of Malaysian palm oil products for June fell 6.9%, cargo surveyor Intertek Testing Services reported. Another cargo surveyor, AmSpec Agri Malaysia, said exports rose 0.6%. Meantime, Indonesia plans to raise its mandatory palm oil-based biodiesel blending to 40% in the next few years after increasing it from 30% to 35% in February. .

High chance to close at 63sen today. My TP $1.00 by year end may come much earlier.

Rumor that LTAT is negotiating with the highest proposer for $2.10 per share . Haha…

Blackrock88’s rumor caused the price to spike this morning. Haha..

I hear it is nothing less than $2.00 . Haha

Very good chance to reach $0.60 by Friday.

As buying interest fizzles out , share price will face pressure again.

@Sslee, I hope what you said comes true . I have the time to wait but boustead/LTAT have no time to wait for more than 1 year . Haha

By year end when 4 more sections are opening to traffic , it will be $1.00 stock.
Based on the actual performance of existing sections already opened, traffic volume is expected to grow rapidly and enable WCE to be profitable in very early years of full completion. Just look at how congested is PLUS N-S highway!
$1.50 when it start to paying maiden dividend.

Zhuge, when I said I am also waiting for $0.60 is merely echoing someone’s call . Not serious about it . Haha….. . You must read between the lines .

Retailers who don’t have patience to wait for 1-2 months for the deal to be wrapped up shouldn’t touch this stock . Market operators will continue manipulate until the deal is announced.

Weigh the risk and reward. You will know how to make a decision.

Asked to comment, Boustead declined to respond to The Edge’s queries.

The Edge report it again on 26/6/2023!

https://newswav.com/A2306_wQ6MQd?s=A_jZGR0Yv

I am also waiting for price to drop to $0.60 .

The market operators continue to play and prey on retailers until the deal is firmed up .

Clearly so . As a result, no idss volume and very low rss volume done today.
I am ready to add some when the price is being pushed down .

Privatization offer by SU will come like a thief in the night without warning.

$1.50 will come when the company start paying dividend in a few years after fully opened . I am prepared to wait and it’s worth waiting for .

@miracle_trader, Agreed . Either way it works for me . Present share price is way to low to take profit.
The situation remains that LTAT needs to sell assets to raise a large sum as over $2 bil of loan due for repayment next year . LTAT’s intention to sell Bplant is real . The remaining factors are price and timing.

Amongst the bidders , I think YTL will emerge as winner with substantially higher bid .
YTL bought 664 ha for $428 mil or whopping $646k per ha for RE business ( I guess RE business is very profitable to afford such high land cost) .
YTL is in position to benefit from cheap Bplant’s land for industrial use such as RE.
Assuming YTL pays $2.50 per Bplant share , the total consideration will be about $5.5 bil.
This $5.5bil is just equal to 8,514 ha of land at the same price paid last year (ie 646k/ha). And the balance 89 k ha of land is as good as free.
YTL has deep pocket with $13.5 bil in FD and cash in balance sheet. YTL may also join hand with a plantation company to win the deal and subsequently split the land for oil palm and RE respective in a win win deal .
I am more optimistic for the price to be above $1.50 some suggested.
Above just for discussion.

Bplant’s total land is 97.4 k ha.

@Valueinvestor888, Boustead is fully owned by LTAT. The disposal is driven by LTAT. I think LTAT has got the necessary ministries blessing before starting the process. Any approval is mere formality.

Yes ! Green now. After panic sell , panic retailers may go in to buy again soon.

Again, panic retailers got preyed by the market operators .