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.
THESE ARE LONG TERM FUNDAMENTAL SUPPORT FOR PALM OIL
1. PERENIAL DEMAND WHICH IS FOR AS LONG AS HUMAN BEING EXISTS ON PLANET EARTH
A. COOKING OIL ALL HUMANS NEED TO EAT FOOD. PALM OIL IS THE CHEAPEST COOKING OIL USED BY 8 BILLIONS HEAVY USERS OF PALM OIL ARE CHINA, INDIA, PAKISTAN AND OTHERS
AS IN TOOTHPASTE
EVERY MORNING AND NIGHT 8 BILLION PEOPLE NEED TO BRUSH TEETH WITH COLGATE PALM OIL AND OILVE
3. 50% OF ALL CONSUMER GOODS IN SUPERMARKET GOT PALM OIL
ALL THE NEED FOR GREEN ENERGY
INDONESIA BIOFUEL B35 WILL INCREASE TO B100
AT B100 77% OF ALL PALM OIL PRODUCED IN INDONESIA WILL BE USED AS BIOFUEL
ONLY 23% LEFT NOT ENOUGH FOR EXPORT
IN USA THEY NOW GOT TO IMPORT SOYOIL FOR BIOFUEL
SO FROM BOTH FOOD AND FUEL THERE ARE TWIN SUPPORT FOR PALM OIL
AS WORLD POPULATION INCREASES AND PALM OIL LANDS CANNOT INCREASE DEMAND WILL CONTINUE TO OUTSTRIP SUPPLY JUST LIKE FISH IN THE SEA (NOT ENOUGH) AND GETTING EXPENSIVE
SO PALM OIL CAN ONLY GO PAST RM4000, PAST RM5000, PAST RM6000 AGAIN AND ON TO HIGHER PRICES
THAT IS WHY PALM OIL DEMAND IS INELASTIC LIKE WATER
PLUS A PLUS POINT
END OF LIFE USE FOR PALM OIL
THE UNDERLYING LANDS ONE DAY WILL HAVE COMMERCIAL POTENTIAL AND CONVERTED INTO HOUSING, DATA CENTER, SOLAR FARM, INDUSTRIAL PARK, NEW TOWNSHIP AND EVEN NEW CAPITAL CITIES
kelvin_ik4u Plam oil is always like that, start plant require cash/fund/debts to build empire. Once it empire steady and cash generated machine, it will be an auto-pilot for next 18yrs. This counter will be the next shine palm oil for this year.. it's CAGR 21% compounding for next 3 yrs, now Bumitama just sit and collect money as all it palm tree is 6-7yrs now with FFB nucleus oil >24%, 107% growth vs Q1'FY13. Strongly believe this counter will start give dividents moving forward. Since CPO price is up ard ~RM2700/tan metric, I believe will share price will skyrocket this yr. Target $2.00 before end of this year 2014. 19/05/2014 6:16 PM
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
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
53,217 posts
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