Posted by Hafid > 2017-07-02 07:38 | Report Abuse

Shin Yang is selling to sop because the land is a trouble land. So let sop bear the consequence of it. Own co and way.

Posted by Jason Lim > 2017-07-02 15:28 | Report Abuse

Well said Hafid. With Shin Yang in the way, there is no way SOP can spread her wings and soar high. Shin Yang's management is very poor.

Posted by enning22 > 2017-07-23 17:46 | Report Abuse

what trouble land? all farm lands initially are trouble land ,need to be clear ,get trees planted , and put in sufficient fertiliser,and then land becomes good and productive.ShinYang is operating with insufficient capital, incured debt, need to merge with well funded entity.

Posted by enning22 > 2017-07-23 18:04 | Report Abuse

the real worry in general,I think is this, people worry about high production in Indonesia,with high supply that may cause CPO price to fall to unprofitable level.This i think is not going to happen.Current Cpo price in world market is around 2500-2600 ringgit per tonnes, and cost of production for CPO ranged from 1500-1700 per tonnes in malaysia.

Posted by enning22 > 2017-07-23 18:22 | Report Abuse

global markets are forecasting soybean output (a common substitute of palm oil) in USA, Brazil and Argentina to increase significantly despite unfavourable weather forecast in 2017 (I don't know why such paradox appear).
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the answer to this is quite simple ,the planted acreage this season is report as 7% enlarged as compare to last year, so unfavourable weather may reduce production some what , but still the end result still could be bigger then last year figure.
ON the demand side , you should see China import of soyabean is also increasing with sizeable %. (please refer to USDA world supply and demand report)

Posted by Good_buy > 2017-07-23 18:36 | Report Abuse

Q1 EPS 12 sen. Q2 2017 FFB output still up 10% QOQ.

Posted by Artemis > 2017-08-01 20:03 | Report Abuse

thank you @enning22 for the extra information. I totally agree about the Indonesian production fear plus Indonesia has been seizing bigger market share over the years. In my own opinion, SOP is highly undervalued and found a bottom already

Posted by enning22 > 2017-08-07 17:04 | Report Abuse

100% agree

Posted by joetay > 2017-08-08 11:59 | Report Abuse

@enning22,

u obviously do not know how things work in sarawak.

the big issue facing plantation companies in sarawak is native land rites issues, which can dragged on for yrs and may not be resolved easily.

even if a company works with the state govt via pelita, the company will still get into legal issues. and furthermore, there is the rspo and csr with major mnc to deal with.

thats why u dont see klk or up venturing into sarawak or even ioi expanding its footprint in sarawak since 2006.

Posted by enning22 > 2017-08-08 16:10 | Report Abuse

i did see many MATERIAL LITIGATIONs between THPLANT vs respective parties, and not so with SOP, further your accessment of production cost is bias and not correct (refer your post in calvin column).

Posted by enning22 > 2017-08-08 16:47 | Report Abuse

http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/129358.jsp

Posted by Jaack1 > 2017-08-10 14:46 | Report Abuse

Artemis/Enning22 - thanks for sharing

Posted by tkt66 > 2017-10-12 21:27 | Report Abuse

Artemis, good evening!

Noticed that you did not add in the following items in your year 2016 capex calculation.

a. Increase in land held for property development
b. Acquisition of additional shares in an associate
c. Additions to land use rights

and added Acquisition of subsidiaries, net of cash into the capex figure.

However, Acquisition of subsidiaries – net of cash was not included in capex for 2010 & 2009.

I am not a financial person, could you please explain?

Thanks & regards

Posted by tkt66 > 2017-10-12 21:40 | Report Abuse

Another item is (Decrease)/Increase in trade and other payables (516,091) is the culprit of -ve CFFO for Q1 2017 - may I know why this can happen?

$ used to pay Sin Yang for the estates? it is only around 284,432, how to derive to the huge amount of (516,091)?

Hope can receive your reply soon.

Thanks & regards

Posted by Artemis > 2017-10-14 12:15 | Report Abuse

@tkt66

a) I took a focused approach whereby I only want to look at their palm oil plantation business since their property business as of 2016 was really small although it is expected to be bigger due to completion of their various Property Development projects. Simply speaking, I personally have no grasp of their future direction with their property segment which is why I try not to put a hard figure for it.
b) Acquisition of additional shares in an associate is 0 in 2016
c) I must have left out this figure by accident as it was a very small figure
d) Same mistake with (c) I apologize for these mistakes

Acquisition net of cash should generally be included in capital expenditure requirement because some companies grow through acquisition instead of investing into new property, plant and equipment. The reason it should be net of cash is because you are acquiring the enterprise (i.e. you acquire the counter-company's debt and cash too so the total price paid is actually market cap + total debt - total cash).

The decrease in trade payables (516091) is just the result of SOP's management of their working capital. It can be because the late payment interest charges are about to be commence that motivate them to pay off the account payable or it can be of other reasons too. I can't confidently say I will know "WHY" they decided to pay off those payables.

If you read page 20 of 2016 annual report, you can see that the company acquired ShinYang with a combination of different financing strategies. I may not be 100% right but these are my takes on this company.

Posted by tkt66 > 2017-10-18 21:27 | Report Abuse

Artemis,

good evening!

Noted with thanks - the purchase price is not only 284,432 but also inheritance debt of 588,573.

Best regards