Posted by calvintaneng > 2022-04-26 20:51 | Report Abuse

Bplant versus Jtiasa versus Thplant

all with over 200,000 acres of palm oil bigger than spore landmass Rm180,000 acres

Target Rm2.00 to Rm3.00

Buy and hold very tightly all of 2022 till 2023 for palm oil Superbull run time

Posted by Johnzhang > 2022-04-27 06:26 | Report Abuse

A very thorough study on Bplant. It is too grossly undervalued indeed .

Posted by Johnzhang > 2022-04-27 06:51 | Report Abuse

With very strong positive cashflow from operationw coupled with intended disposal of Sarawak estates, Bplant will be a nett cash company very soon. Privatisation is on the card.

Posted by brianklc > 2022-04-27 07:44 | Report Abuse

Sell Balau n Malakoff, small land, less impact to production, big impact to financials, with proceeds from land sales, more money can be invested in the remaining plantation

Posted by steveccwong > 2022-04-27 09:56 | Report Abuse

Bplant has very strong fundamentals such as huge oil palm land size, good harvests, good management, sell on spot rate, good dividend policy, and so on.

Taking it private, take-over, etc shall factor in all these positive points.

Hold tight for good dividends as long as FCPO is RM6K/ton or even RM5K/ton for as long as possible.

Whatever comes is immense bonus to all faithful shareholders.

Posted by dragon328 > 2022-04-27 10:26 | Report Abuse

I feel that privatisation may be a bit far stretched assumption as its parent Boustead Group is heavily indebted. It would be hard for it to raise fund to take it private. As Boustead already owns 57% of Bplant, there is not much point to take it private at a price close to the IPO price when it listed Bplant a few years back. Any privatisation offer at anything below RM1.50 would fail miserably.

Posted by dragon328 > 2022-04-27 10:30 | Report Abuse

To me, it makes more sense for bigger plantation boys like KLK, IOI or Sime Plantation to take over Bplant at a valuation much lower than their own. KLK took over IJM Plantation at close to RM70,000/ha for IJM Plantation estates in Sabah, it could launch a take over offer for Bplant at RM70,000/ha or about RM2.30 per share, which would still be earnings acretive to KLK, adding precious and sizable freehold plantation estates in Malaysia and still has plenty of room to improve on operational performance in later years.

Posted by Johnzhang > 2022-04-27 10:39 | Report Abuse

It is political very sensitive for any non bumi companies to fully acquire Bplant or THplant . I think that won’t happen unless a bumi entity come along . Bear in mind of Bplant’s intention to sell off all the Sarawak estate and that will turn Bplant a debt free company once completed. The privatization will be by SCR . I will not require financing from Bstead or LTAT.

Posted by dragon328 > 2022-04-27 10:39 | Report Abuse

Currently there are certain groups of investors who are still skeptical of the current palm oil price rally, the sentiment on plantation stocks are dampened by bearish local analysts like RHB, CIMB, Kenanga etc who still predict that average CPO price for this year 2022 will be around RM4,000-4,200/tonne. To me this is a ridiculous assumption as YTD average CPO price already exceeds RM6,000/t and it looks set to remain high at least until end of August 2022. I do not know why these analysts are so bearish on CPO prices and plantation stocks, whether they have own hidden agenda to prevent those plantation stocks share price to shoot up so that these broker houses who have issued plantation call warrants will not need to pay high settlement prices for call warrants, or they are purely too egolistic to correct own bearish view.
They were conservative in January before the invasion of Russia into Ukraine, that was okay. But after the Ukraine war has been going on for 2 months with no sight of ending soon, they are still sticking to own projection for a low average CPO price for 2022, trying to find all sorts of reasons to justify their bearish view like Malaysia will soon be getting 30k foreign labour into the plantation sector to help harvesting. That is nonsense. They are totally on the wrong foot!
How much CPO production would Malaysian planters be able to harvest more with more foreign labour? Malaysia only exports about 18 million tonnes of CPO a year, how will Malaysia be able to fulfill the gap left over by Indonesia who is trying hard to restrict export of CPO and refined products?

Posted by dragon328 > 2022-04-27 10:46 | Report Abuse

How big is its Sarawak estates? Bplant would need to be a nett cash company for Boustead/LTAT to take it private via SCR. It would need to have nett cash of close to RM1.0 billion in order for the parents not to require external debts.

Posted by Johnzhang > 2022-04-27 11:09 | Report Abuse

Bplant has strong assets and strong operating cashflow to secure bank financing to fund the SCR.

Posted by Plantermen > 2022-04-27 11:26 | Report Abuse

Hypothetically IOI have the means, recourses and financial means to acquire BPlant. IOI have disposed of their stalk in Bunge and have the war chest for any new acquisition. We must remember Glic link funds { eg EPF, PNB, KWAP, TabHaji } hold substantial stake in IOI Corp. Epf {12%},PNB {8%},KWAP {3%} and others {2%} Foreign registered shareholder's hold around {10%} Local funds holds another {5%}. Lee family interest another 50%.

Posted by dragon328 > 2022-04-27 11:36 | Report Abuse

Ya IOI Corp would be a good suitor as well. Or Sime Plantation. Anyway it all points to the fact that Bplant is grossly undervalued and has good assets.

Posted by MuttsInvestor > 2022-04-28 01:23 | Report Abuse

Did everyone forget about Tradewind Plantation ( Now taken Private ) ..... No introduction required if you are in Business ( PO and Rubber) and with links to political figures as a potential..."King maker" ?? He may be the potential person who can take Bplant .... Private.

Posted by calvintaneng > 2022-04-28 23:18 | Report Abuse

SIMEDARBY TOOK GUTHRIE AND GOLDEN HOPE PLANT PRIVATE

LATER SIMEDARBY HIVED OFF ITS SIMEPLANT

AND SIMEPLANT MERGED WITH GUTHRIE AND GOLDEN HOPE PLANT TO BE WORLD BIGGEST PALM OIL COMPANY WITH OVER 3.3 MILLION ACRES

FFB IN JUST ONE MONTH IS ALMOST 800,000 TONNES

THE FFB COLLECTED BY SIMEPLANT IN ONE MONTH IS MORE THAN THE TOTAL FFB COLLECTED BY MANY PALM OIL CO IN ONE YEAR

SIMEPLANT HAS A 200 YEAR HISTORY LONGER THAN BPLANT

ITS PRIME LANDS IN SELANGOR HAS A BOOK VALUE OF ONLY 30 SEN PSF

WAIT TILL SIMEPLANT DISPOSE ITS LANDS TO UNLOCK VALUE

IT WILL BE MING BOGGLING

Posted by calvintaneng > 2022-04-28 23:19 | Report Abuse

Mind boggling if Simeplant sells any of it's highly valuable lands to unlock value

Posted by MuttsInvestor > 2022-05-05 11:24 | Report Abuse

VERY thorough study INDEED ! Respect and Gratitude to the True Analyst

Posted by Collin59 > 2022-05-05 11:59 | Report Abuse

buy back saham btcoin gg already

Posted by kelvin61 > 2022-05-22 14:27 | Report Abuse

Very thorough analysis of the intrinsic value of BPLANT. Kudos to the writer for the excellent job. In fact, it shows why our local analysts are not up to mark and overpaid. Their write ups are like a newbie starting out as an analyst. SHOCKING to read and full of nonsense. Wonder how these local investment banks employed them in the first place. Let's savour the best of what BPLANT has to offer, cheers.

Posted by StartOfTheBull > 2022-05-22 15:07 | Report Abuse

It is more ridiculous when we have fresh graduates from those "cap barang" business overseas universities assigned by investment banks to operate its share trading accounts.

Posted by dragon328 > 2022-05-23 08:19 | Report Abuse

Local analysts are too slow to react or too egolistic to correct own bearish view. Some still stick to own earlier projection of average CPO price of RM4100/tonne for 2022 though actual YTD CPO prices have averaged above RM6,000/tonne

Posted by ktrader > 2023-06-19 12:36 | Report Abuse

still strong huhu

Posted by dragon328 > 2023-07-19 16:17 | Report Abuse

Finally a take-over of BPlant is happening 15 months after my suggestion in this article, coming too late?