Posted by Ong Chong Sin > 2013-11-29 21:47 | Report Abuse

Big plantation land bank for property development in kelang area

Posted by unclelim > 2013-11-29 22:57 | Report Abuse

Very illiquid counter but solid company.
Only 137m shares and has over RM155m cash on hand and virtually debt free.

Owns over 600+ freehold land in Shah Alam, behind Kota Kemuning and near IJM Land's Rimbayu. Currently stated in accounts at approx. RM5 psf but should be worth at least RM 40 psf.

Don't touch if playing contra.

Posted by kltan > 2013-12-09 14:48 | Report Abuse

IJM Rimbayu is selling like a piece of hot cake right now. 644 acre of freehold land (Thugamalay Estate) can easily fetch up to 1.0 Billion (assuming Rm40/ft^2), that works out to be ~RM8/= per share.

Posted by kltan > 2014-01-21 15:28 | Report Abuse

A sleeping counter suddenly wakes up

Posted by tonylim > 2014-01-21 21:38 |

Post removed.Why?

Posted by unclelim > 2014-01-22 09:54 | Report Abuse

Reported in The Edge Daily today, Public Investment Bank gives SAB a Fair Value of RM7.77

Posted by iafx > 2014-01-22 10:15 | Report Abuse

far better than brem, at least SAB is making 25c earning per share

Posted by iafx > 2014-01-22 10:31 | Report Abuse

yaaaahoooo...

Posted by unclelim > 2014-01-22 10:33 | Report Abuse

Personally, I think the valuation given by Public Investment Bank on the 644 acre landbank at RM 562 million is still too conservative.

The land is surrounded by IJM's Rimbayu and Tropicana's Canal City but these 2 projects are on Leasehold Land whereas SAB's land is the last Freehold Land in this area and is directly behind Kota Kemuning.

Me thinks the land alone is worth RM 1 Billion.

Posted by iafx > 2014-01-22 10:38 | Report Abuse

holding good resource must also making good $, another one is KSL... let's c ;)

Posted by tonylim > 2014-01-22 13:08 |

Post removed.Why?

Posted by ssss5371 > 2014-01-22 22:07 | Report Abuse

actually may i know where to see the property (example 644 acre landbank surrounded by IJM's Rimbayu and Tropicana's Canal City). Appreciate so much if someone could told me~ ^_^

Posted by iafx > 2014-01-23 09:32 | Report Abuse

u can normally find list of properties in the annual report

Posted by hw0706 > 2014-01-23 10:19 | Report Abuse

must be public invetment bank want to sell the share. there is no research for it.

Posted by lotusf1 > 2014-01-23 10:22 | Report Abuse

Evryttime shares jumped skyhigh u hears voices ,bad calls...

Posted by iafx > 2014-01-23 10:22 | Report Abuse

bcos not everyone catch the train ;D

Posted by lotusf1 > 2014-01-23 10:24 | Report Abuse

Perhaps grapes turns sours....

Posted by iafx > 2014-01-23 10:27 | Report Abuse

sab is a net cash co., this make a big different. nevertheless, except for true long term holder, do know when to sell. sab has shot from 2.9 -> 4.06 in couple of days. good luck!!

Posted by lotusf1 > 2014-01-23 10:32 | Report Abuse

Script written ,7.7 /shre ,that is a reason.

Posted by Melaos > 2014-01-23 13:56 | Report Abuse

Wah yah. Two days continuous goreng..can still buy?

Posted by lyechin2003 > 2014-01-23 13:57 |

Post removed.Why?

Posted by MrLimJY > 2014-01-23 14:29 | Report Abuse

not too sure what oleochemical is, can someone please explain? Though I read that its related to palm oil, and international palm oil prices are following, so not too sure how this stock will do in the long run.

Posted by kltan > 2014-01-23 15:06 | Report Abuse

A recommendation I made to my brothers months ago when SAB was RM2.7/=

(1) SAB:

Rimbayu project, by IJM land, which is just next to 644 acre of SAB land, received overwhelming response. See link below.

http://www.starproperty.my/index.php/articles/property-news/update-all-non-bumi-units-of-bandar-rimbayus-phase-2-sold-out/

You can also check on the IJM Land Rimbayu website.

SAB currently has 156M cash, total liability of 62M, market value of 377M (RM2.75/= per share x 137M share capital). The enterprise value of SAB is 283M. If we ignore all its other properties like (1) 10,000 acre of palm oil plantation in Indonesia, (2) a specialist hospital in Klang (3) receivable/inventory and calculate how much is the land in Kota Kemuning, the calculation follows.

Area = 644 acre x 43600 ft^2/acre = 28M ft^2

Price per ft^2 = Enterprise value/ area = 283M/28M = RM 10/ft^2.

To build one house with an area of 1760 (22 ft x 80 ft), the land costs only RM 17k. Compare this with the current selling price of Rimbayu project, which could easily be 400k if not less.

Posted by iafx > 2014-01-23 15:09 | Report Abuse

how far away from ksl klang? ;D

Posted by kytan > 2014-01-23 15:11 | Report Abuse

is a good buy, people give target price is RM 7.7. keep for long term. and notice the share in market is not much. can go up very fast just like Ecoworld.

Posted by emma > 2014-01-23 15:54 | Report Abuse

2014-01-22 16:42 （吉隆坡22日訊）南方油脂 （SAB，5134，主板工業產品組） 雪蘭莪地庫潛能被忽略，預測重估 後價值將超越集團市值，高達5億6 千100萬令吉。

南方油脂於1980年設立，業務涉及 種植、油脂化工、保健、倉庫及物 流，市值4億2千萬令吉，手握1億4 千800萬令吉淨現金，在雪蘭莪哥 打甘文寧首要地段持有約645英畝 種植地。

實際價值料每股7.77令吉

這塊永久地段發展潛能被忽略，以 目前股價計算，股東等於免費持有 該地及現金，公司價值嚴重低估， 實際價值應至少10億令吉或每股7 令吉77仙。

Posted by Panda Yuan > 2014-01-23 16:11 | Report Abuse

= = i think need to wait atleast half year to get another result pop

Posted by kltan > 2014-01-26 18:33 | Report Abuse

With the price surge observed on SAB in last few days, many would wonder if it is getting too expensive now?

Let me do a rough breakdown of the company and see how much does it really worth.

(1) The company has net cash of 89 M (cash of 155M - total liability of 66 M). It is RM 0.65/= per share.
(2) 10800 acre of palm oil plantation in Indonesia. Let us conservatively assume RM10k per acre. It is worth 108 M, or RM0.78/= per share.
(3) Olechemical industry: It is making 23M PBT in 2013. Assume Tax of 25%, PE = 5.0. It is worth 23 x 0.75 x 5 = 86 M, or RM 0.63/= per share.
(4) Health Care, 3.8M PBT in 2013. Again, Tax of 25%, but PE should be higher at 10. It is worth 3.8 x 0.75 x 10 = 28.5M, or RM 0.20/= per share.

If we sum up item 1 to 4, it works out to be ~RM2.2

With the share price at RM4/=, one is actually paying RM1.8/= for the land in Kota Kemuning. One lot of SAB has ~200 ft^2, which works out to be RM 9/= per ft^2.

If I remember correctly, land cost is normally about 20% of a house's selling price. I am living in Penang, might not familiar with the real estate in Kota Kemuning. From my limited network, I know that currently in that area, a double story link house worth not less than RM500k (project by paramount, a company linked to SAB). The land cost for a landed property (about 2000 ft^2) is 20% of 500k, which is about 100k, or about RM50/= per ft^2.

Another reference comes from the transaction by Dijaya Corporation. The company acquired 1172 acres of land next to Rimbayu at 1.3B, which works out to be RM25/= per foot.
See link below.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1257257

If we assume RM25/= per foot for the land, together with its net cash, palm oil plantation, etc. The target price should be ~RM7/= per share, which is not far from public bank target price.

Land is the most conservative, safest asset to invest if the entry price is reasonable.

Posted by kytan > 2014-02-13 03:50 | Report Abuse

After 10 days down trend, yesterday bull run try to brake 4.22 previous high...? The share not much floating

Posted by michaelwong > 2014-02-14 01:38 | Report Abuse

Kltan, thanks for ur previous research n information that I come across in this forum. Ur information provided in this forum is very clear n supportive. All along, I was thinking that this counter stock (SAB) is very expensive from the recent upsurge. However, base on ur calculations assests , liquidity plus TP around RM7, I think it's still cheap base on the current market price.

Best of all to sab investors do take note!!!. Best buy stock. Dare to invest there is always a challenge n hope n with a little bit of patience it will reap somehow.!!'

Kltan I ageed with ur concept. In general point of view , there is some risks in investing.

Thank for ur solid info. Bye! and have a nice tomorrow 2 everyone in this forum.

Posted by kltan > 2014-02-14 02:41 | Report Abuse

the biggest risk in this counter is: the management might not do anything to the land for the next 10 years, just like Kseng case. there is absolute nothing we, as small shareholders, can do.

Posted by lotusf1 > 2014-02-14 08:57 | Report Abuse

Having multple assets arejust good enough to turn the wheels of ernings fr SAB,...1 billion could be worth 5to 6 billions when those lands converts tomproperty....

Posted by Firebird2 > 2014-02-14 09:31 | Report Abuse

I do agree with you. Year after year, they produce good results even while they are keeping the land. Perhaps, we need a longer time frame holding it, but reading what you all contribute is very convincing. I haven't take up any position yet, as the price had run up. Am watching it and interested, got to look at its business and reports first

Posted by whytea > 2014-02-17 11:48 | Report Abuse

kytan, thanks for the info.

Posted by Melaos > 2014-03-28 23:53 | Report Abuse

this counter still can go up?

Posted by kltan > 2014-04-02 14:01 | Report Abuse

There is an interesting transaction completed just recently. See below.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1570849

Ecoworld is paying RM35/= per ft^2 for a piece of leasehold land measuring ~300 acre next to Kota Kemuning.

Based on the transaction price, SAB land (free hold) alone in Kota Kemuning is RM7/= per share.

Posted by joeter999 > 2014-04-05 11:29 | Report Abuse

BUY SAB !! why? refer to announcement dated 28.03.2014,the company pump in Rm 136,900,000
into Pembinaan Gejati Sdn Bhd ,actually PGSB is the ultimate land owner of Kota Kemuning land...why they put in such big amount cash into PGSB...the only reason is ...they want to develop the land by their own...
What is the value of this company? here is the simple calculation -
Ecoworld buy Rm35/sq ft for a piece of LEASEHOLD land in K.Kemuning, which it mean the minimum land value(freehold) of SAB is : 35 x 43560 x 644 = Rm981,842,400
the company generate Rm 34,464,000 profit (f/y Jan 2013) : 34,464,000 x 10(P/E 10) = Rm 344,640,000 ,
the total value of company was Rm 1,327,482,400/136,934,132 = Rm9.69/share
above calculation was minimum amount,why?
Year 2013 Dijacor bought the land near Rimbayu with Rm 25/sq feet, year 2014 Ecoworld bought Rm 35/sq ft...how about year 2015 ...2016...2017......and now the company intend to develop the land, how much extra profit they can generate from this land? I dono, but sure this company was deep under value !!

Posted by joeter999 > 2014-04-08 23:13 | Report Abuse

: )

Posted by kltan > 2014-04-09 00:40 | Report Abuse

Wou! I am going to buy more SAB tomorrow.

Posted by michaelwong > 2014-04-09 01:39 | Report Abuse

SAB eyes commercial milling to boost future earnings. (This article first appeared in the Edge Financial Daily).Latest info - 07/04 / 2014...............must read.

Posted by kltan > 2014-04-23 16:17 | Report Abuse

SAB is flying high

Posted by rchi > 2014-04-23 18:12 | Report Abuse

revalue the land lah,increase nta to rm10.00 and above...and give bonus issue 5 for1......kikikikiki.

Posted by tonylim > 2014-04-23 18:15 | Report Abuse

Kikiki another CTR like gek sim. Shareholder ka ki Ku kiki

Posted by michaelwong > 2014-04-24 00:25 | Report Abuse

Today finally (SAB) trading market volume has somehow show some positive note for its coming uptrend momentum. The trading daily market volume have surpassed it's four figure digits instead of being lacklustres for quite some times.

Many mid cap stocks has not perform well in the past several weeks as compared to penny or third liner stocks. Certain many penny stocks or third liner stocks has remained robusts n exceed their intrinsic value.

Likewise, base on some financial analysts remarks n overall regional positive market support, it's time to focus more on mid cap stocks with strong underlying balanced sheet.

SAB is said to be one of the stocks with far reaching goals for future investments n undervalue.

If SAB has taken a bolder step in its business opportunities l think it's share price supposed to have went up n reflect it's actual TP price instead of staying in a dead lock position.

Some volume coming up! Stay tuned!!!!!++++????.

Posted by tony888www > 2014-04-24 11:08 | Report Abuse

huat aarrr 兄弟 and rchi

Posted by sklyte > 2014-04-24 11:17 | Report Abuse

SOUTHERN ACID TP 9.20 BY PUBLIC RESEARCH, DEEEPLY UNDERVALUED, MY TP FOR THE YEAR RM7

Posted by sklyte > 2014-04-24 11:23 | Report Abuse

valuationfor plantation only 5x? my goodness.. stupid public research, this stock is potentially worth RM12

Posted by kytan > 2014-04-24 11:27 | Report Abuse

sab lai liao

Posted by Hearsay > 2014-04-24 11:29 | Report Abuse

Unpolished Gem starting to shine ! Hooray ! Will it goes limit today ?

Posted by sklyte > 2014-04-24 11:30 | Report Abuse

PUBLIC research is too conservative la, this potentially worth RM12, should put in your freezer!