The profit is mainly due to fair value adjustments gains of biological assets. I hope Calvin can take action instead of using mouth only to ask Hsplant management to pay more dividend.
From a ROE perspective, the return of Hap Seng is in between that of KLK and BPant. It is better than BPlant but not as good as KLK. These are my 2 reference Bursa Plantation companies where I have detailed fundamental analysis. https://www.youtube.com/watch?v=9KhboTCMdEg The comparative ROE trend and share price trend shows a good link. Prices are currently low relative to the ROE. If you are hunting for stocks with price-fundamental discrepancy to invest in, this is one company worth a deeper look. https://i.postimg.cc/CKnbFHHm/Hap-Seng-Plantation.png
I really like reading your comments about the market. You literally doing basic things just to be a profitable. You don't need those a lot of strategy because the more important thing in this trading career is how you will think and react on the markets. Thank you
I just received my Independent Advice Circular on the mandatory takeover offer for Boustead Plantation. The thing that stood out was that the Revised Asset Value of Boustead Plantation was estimated at RM 2.60 per share. Contrast this with its Book Value of RM 1.29 per share. You can see that the Revised Asset Value is double the Book Value Going by this metric, can you take the Book Value of all the Bursa Plantation companies as the floor value? https://www.youtube.com/watch?v=9KhboTCMdEg Or at least this applies only to those with large plantation land in Malaysia rather than in other countries. By this measure would Hap Seng Plantations with its share price of RM 1.75 per share be cheap given its Book Value of RM 2.41 per share? Having said that, Asset Value provides psychological comfort as companies are not going to sell their assets and return the monies to shareholders. Instead, even the ones with incompetent management will try to run the business (and of course in the process destroy shareholders value). Furthermore, shareholders cannot depend on luck by hoping that the company will be acquired by another. Moral of story? I still prefer to rely on Earnings base valuation
Todays Star commented Parent HSeng already owns around 70 %. So may take over HSPlant as it is cash rich, to help pare its billions in debts. Moreover, good share.
Total NPAT for FY' ending 31-12-23 is RM91.369M. Dividend Policy of 60% of NPAT = RM91.369 x 60% = RM54.82M. Dividend per share = RM54.82/800M = RM0.0685. !st Dividend Paid = RM0.0150. 2nd Dividend Payable = RM0.0685 - RM0.0150 = RM0.0535 which is rounded up to RM0.053.
In view of the 40% NPAT amounting to RM36.547M retained as 60% NPAT amounting to RM91.369M to be paid on 27-03-24, the Net Cash position has increased from RM505.921M (FY ending 31-12-22) to RM531.504M (FY ending 31-12-23).
With new FY'2024 continuing with good operating profit provided CPO stays well above RM3,800.00/ton, Hsplant will continue to improve in its financial performance.
Since Hao Seng Consolidated owns 70% of Hs Plant they also in same position as minority shareholders As long as Cash remain in Company it is ok plus they parked most in money market funds to get higher yield
Can also say the same about people buying Berkshire Hathaway by the Great Sifu Warren Buffet which never even give one cent dividend as he said dividend is taxable
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calvintaneng
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Posted by calvintaneng > 2023-11-20 20:34 | Report Abuse
HS PLANT latest result
Profit 4.73 sen
60% payout from profit will be 2.83 sen
Since Hs Plant got net cash of 60 sen (just take out 5 sen for dividend)
If BOD wants to Hs Plant can easily give another 7.83 sen dividend