Buying plantation stocks main criteria is the profit of the company for the past five years and NOT how cheap is the cost of land. Jaya Tiasa is the last choice among the 8 companies listed above.
so this morning he said "My advice is never to buy any stock based on NTA" and "the most powerful catalyst that can push up share price is profit growth prospect" and a few hours later he is pushing an asset-based valuation metric (which is utter nonsense btw - his approach is only relevant if you are taking over the company, you buying in as a minority have no control over how the promoters run the plantation and the value per hectare of the plantation land will reflect how well the plantations and crop are managed).
Wise choice & thumb up. In term of volume, JTiasa was the most traded plantation counter. The Sibu tauke also control the local Chinese media (Sinchew, Nanyang, Chinapress & Guangming). Just imagine when the editors start to promote JTiasa.
Koon must be really losing his marbles coming up with such pathetic comparative analysis. By the way, Tan Sri Tiong has been unwell for years to the detriment of his various businesses' leadership.
Uncle is very confused of himself . Didn't he repeatedly said the powerful tool to move share price is EARNING ?? Why is he not looking at earning parameters ? Market cap/ha value doesn't necessary mean the plantation is cheap! The true value of the plantation assets lies on the following factors : (1) Earning capacity of the plantation land which again highly dependent on soil type/condition, topography, health of the bearing palms etc. (2) Realisable market value of the land which relate to locality and potential development value
For simplicity, let me just compare the various important parameters of Jtiasa and Bplant which is an average plantation: Planted area jtiasa : 69,589 ha Planted area Bplant : 73,500 ha (including non bearing immature area) Own FFB production Jan -Dec 2021 jtiasa : 727,162 mt Own FFB production Jan -Dec 2021 Bplant : 923,408 mt FFB yield/ha jtiasa (727,162/69,589) = 10.45 mt/ha FFB yield/ha Bplant (923,408/73,500) = 12,56 mt/ha BPLANT'S YIELD/HA IS 20% HIGHER THAN JTIASA.
Oil extraction rate (OER) Jtiasa : 18.1% OER Bplant : 21.1% BPANT'S OER IS 16.6% HIGHER
EPS Jan-Dec 2021 jtiasa : 6.98 sen EPS Jan-Dec 2021 Bplant : 10.77 sen BPLANT's EPS is 54.3% HIGHER
Realisable value for all the land of Bplant in west Malaysia of about 30,000 ha is many times higher than Jtiasa land in the remote area in sarawak. About 10,000 ha of Bplant's land in west malaysia at the fringe of or near towns commands commercial value of $600,000 to $1mil/ha . Half of Malakoff estate in Seberang prai was sold at about $1 per ha a few years ago. in 2021, 680 ha of kulai estate was sold $429mil or $622,000 per ha. These 10,000 ha of Bplant's land with development value (say value at avg 700,000/ha ) is equivalent to 140,000 ha of poor yielding plantation in the remote sarawak. (poor yielding plantation in sarawak fetch about $50,000/ha ).
My intention is not to promote Bplant over jtiasa. It simply to share the facts for the benefit of investing public. All data presented by me in the above can be easily verified.
Uncle Koon forgot to say that he is heavily invested in Jtiasa. Next day after he has sold, he will post "Time to sell Jtiasa. I made a mistake. I shouldn't have based my selection on price of land alone.."
dont trust uncle KYY gel. hes slippery. hhe ll tell people to buy com abc and then when people are buying, he quietly sells making a profit. i fisrt kena from him with dayang. now i never trust him. always curse him
Koon used to promote plantation as well in 2015/2016 if not mistaken. That time he was also claiming about valuation per hectare. Next, we know, all the plantation masuk longkang. Whatever cheap valuation per hectare is con job. If the company have no good yields due to the soil or less rain/fertilizer or the trees are old, all the hectares are meaningless.
KYY should had recommended JTiasa around 65 sen in late Jan 2022 Recommending the stock after a sharp increased to RM1.11 (increased of 70% from 65 sen) with 2 months is highly suspicious. Typical "pump and dump" technique Buyer beware
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....
markgold
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Posted by markgold > 2022-03-11 13:09 | Report Abuse
Buying plantation stocks main criteria is the profit of the company for the past five years and NOT how cheap is the cost of land. Jaya Tiasa is the last choice among the 8 companies listed above.