LET GENERAL RAIDER & SIFU CALVIN CONTINUE KYY UNSUCCESSFUL JOURNEY ON JAYA TIASA LOH...!!
WHY KYY FAILED ON JAYA TIASA WHEN GENERAL RAIDER & SIFU CALVIN ARE EXPECTED TO SUCCEED HERE LEH ??
THE KEY BOIL DOWNS TO VALUATION...VALUATION....& VALUATION, WE ENTER JTIASA AT A REASONABLE PRICE WITH BIG MARGIN OF SAFETY & WHERE THERE IS STRONG UPSIDE POTENTIAL OF PALMOIL PRICE AT SUSTAINED LEVEL MAH...!!
sudah la, jaya this time 6 mil profit only. dont hope too much, mayb next quarter can perform better, but production down for 3rd quarter definitely affected their result. Trust or not trust you will have the answer in 2 weeks time.
Pick from the Sarawak Plantation Companies which pay Dividend: 1) SOP pay 5 cents 2) SWKPLNT pay 5 cents 3) TAANN also pay 5 cents
SWKPLNT is the best, highest Dividend Yield!
Read the following facts about SWKPLNT.
Total Planted Estate = 35,076 Ha Share Qty = 279,032,200 Share Price = RM2.130 (Last Friday Closing) Market Cap. = RM594,338,586 Total non-current liabilities = RM174,307,000 Total current liabilities = RM131,141,000 Non-controlling interests = RM10,470,000 Total current assets = RM153,188,000 Total Milling Capacity = 120 mT/hour Total Milling Assets = RM30,000,000 (Assume 250,000 per mT/hour, it is close to the item "Property, plant and equipment = RM282,225,000" in the Balance Sheet. For comparison, CB INDUSTRIAL PRODUCT HOLDING BERHAD (CBIP) built a new 45 mT/hour Mill in Kalimantan at a cost of around RM1 million per mT/hour)
Enterprise Value (EV) for Planted Estate = 594,338,586 + 174,307,000 + 131,141,000 + 10,470,000 - 153,188,000 - 30,000,000 = RM727,068,586
EV / Planted Estate = RM20,728 / Ha
For comparison, on 20th October 2020, FGV HOLDINGS BERHAD (FGV) issue an official statement and mention in it that "Replanting expenses for the 15,000 hectares were in the range of RM300 million per annum". Wow, FGV's replanting cost alone already RM20,000 / Ha, SWKPLNT's EV / Planted Estate is only RM20,728 / Ha.
Now, look from the point of FFB Production, Latest 12 months FFB Production = 338.502 mT EV / Annual FFB = RM2,148 / mT
TAANN bought 30.5% equity in SWKPLNT at RM2.00 per share in early 2018 and and became the biggest single shareholder.
So I would like to compare before and after 1st Jan 2018.
For SWKPLNT: For the whole year of 2017, FFB production was 237827 mT. For the latest 12 months (Nov 2019 - Oct 2020), FFB production was 338502 mT. An increase of 42.33%.
Now look at JTIASA, For the whole year of 2017, FFB production was 1082137 mT. For the latest 12 months (Nov 2019 - Oct 2020), FFB production was 980,292 mT. A decrease of 9.41%.
Now, Compare the size of these two companies, 1) FFB production: 980292 / 338502 = 2.90 2) Enterprise Value (EV) : 1584m / 735m = 2.16 3) Market Cap: 803 / 603 = 1.33
I do not really trust any small company. Heard people said that many companies have 3 sets of accounts, One for the boss himself, one for the partners and another one for the government.
TAANN will not be that daring because the Sarawak government still hold very big shares in SWKPLNT, in fact the equity percentage is higher than TAANN's if include other government related units.
So I like SWKPLNT for: 1) FFB will increase further for 2021, at least double digit as committed by the company. 2) Already making more profit and paying dividend, definitely will earn even more and pay more dividend.
The latest logs production figure for Wtk & jtiasa already bottom up & stabilise loh...!!
For example the lowest log production for wtk is dec 2019 at 8628 m3 but in latest oct 2020 it is 12524 m3 up 45% mah...!! Also selling price up 40% mah....!! very powerful gain mah...!!
Likewise Jtiasa lowest production is in Jan 20 at 3003 m3 but in the latest Oct 20 it when up sharply to 14802 m3 a very sharp increase of 393% mah.!
With further high gain in selling price of 40%, u can expect very big improvement in jtiasa
Always look at these very important big changes & improvement loh..!!
Posted by Mikecyc > Nov 20, 2020 11:05 AM | Report Abuse
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
calvintaneng
56,437 posts
Posted by calvintaneng > 2020-11-15 23:11 | Report Abuse
Since Uncle Kyy first posted on Jtiasa after he gone up to survey those Huge Jtiasa Plantations up in a helicopter 7 years ago in year 2013
JAYA TIASA PLANTATION AVERAGE AGE IS NOW 11 YEARS
THIS THIS THE PRIME AND MOST PRODUCTIVE STAGE OF PALM OIL NOW
FROM 11 YEARS TILL AGE 30 JTIASA DOES NOT NEED REPLANTING BUT REAP A BOUNTIFUL HARVEST YEAR AFTER YEAR