It won't be as bad as BPlant. Boustead make tons of money by pricing their BPlant IPO at top price (more than 15x PE) while Tanah Makmur is only priced at 10x PE (the average plantation company are priced more than 10x in this current high CPO price). Boustead only spend few hundred millions to privatize Boustead Reit and now their holding in BPlant is more than RM1.5b, and plus they netted few hundred millions from share sale.
After going through the Tanah Makmur Prospectus, I can say Tanah Makmur is quite good. The oil palm tree profile is actually better than BPlant, only 18.7% of trees are above 19 years. 50% of trees are between 4 - 18 years which is good in the current high CPO price. The rest 31% is below 4 years which provides upside in future earnings, should the current high CPO sustains for many years to come.
As for their property play, GDV of KotaSAS might jump to RM3 billion from RM1.5 billion should the Pahang government decides to relocate their new administrative building in KotaSAS. I believe with connection to Pahang Royalty as their shareholders, this will happen. You know what I mean. haha
Don't forget that, their landbank in KotaSAS (which they said will not interfere with KotaSAS property development)contain more than 1.4 million tonnes of bauxite deposit and they have made smooth progress to monetize on this deposits since early this year.
Below are some TP provided by research houses. CIMB 1.88 MBB 1.63 JF Apex 1.51 TA 1.48
You should check in on some of those fields below.
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Posted by Khai Zam > 2014-06-30 16:34 | Report Abuse
this shariah-approved listing?