David, RM27.29 million came from the sale of logs. GP has 129,134 ha of timber concession land under its jurisdiction. So how can revenue from sale of logs be considered a one-time-off gain?
Subsequent to the period end, the Group's timber management subsidiary, Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn. Bhd. ("KPKKT") opened a tender to extract logs from six (6) compartments covering 2076 hectares in it concession area. The successful applicants that have been selected on 28 January 2014 had paid 30% tender deposit of RM8.19 million out of total logs sale proceeds of RM27.29 million. The balance has to be paid within 30days of the issuance of the approval letter.
All payment should be received in 2014Q1??? Consider One off??? Be careful anyway, cheers. 08/06/2014 17:33
That's the tender money collected for the above. Anyway, for those who believe Gpharos would repeat the same good results in Q2 and the subsequent quarters, like what Sunztzhe found out, they should borrow along to hentam kuat kuat....
More sharings could be found from Ben Gan's earlier posting :From an ugly ducking to a golden swan"...U read, understand and make your own decision..Happy investing and good luck!!
My understanding is the RM27.29 million was log sale proceed from the 2,076 hector. Based on the total concession area of 128,720 hector, so GPHAROS's earning should be able to sustainable for many quarter. Furthermore, based on the monthly log production figure announced for April'14, it seems like Q2 result will be even better than Q1.
Ben Gan's earlier posting :From an ugly ducking to a golden swan". After 3 months, people will realise ugly ducking is still an ugly ducking, and the owner become poorer.
sunztzhe GP is committed to sustainable forest management on 129,143 hectares of forest under its management under selective cutting approach whilst maintaining continuous forest cover and species diversity.
The valuation per hectare will most likely be based on the Net Profit per hectare. Based on recent Q1 results, GP made a net Profit of 19.96 million per 2000 hectares of timber concessions.
Assuming no change to status quo on company business operations the potential net profit for the entire concession = 129,143 hectares X 19.96 million/2000 hectares= RM 1,288 million.
Market Capitalization for GP based on last Friday's closing price = RM 107 million
Does this infer that GP Market cap for forest concession of 129,143 hectares could potentially be valued at RM 1,288 million or 12X 0.795= RM 9.54 per share??
If you do not concur with this estimate of value, please do advise and share with fellow i3 members on a more realistic approach to value 129,143 hectares of GP timber concessions.
Does anyone in this thread has the experience or network of friends who can assist in estimating a value for the 129,143 hectares of forest concessions?
If you guys shared the same thought with Sunztzhe and albukhary on the estimated potential profit of Gpharos,if lah...obviously Gpharos is the most undervalued counter in Bursa or even in the world....so you may quick quick borrow from Along and hentam all on it....good luck...u may be able to fly then....
Posted by newbird33 > Jun 8, 2014 01:16 PM | Report Abuse
Agreed. The parent got a piece of land want to do mining, so asked GP to chop down everything on it. Once finished, GP will be like what it used to be.
However, for those who have doubts, I personally think Newbird33's earlier posting has indeed, described the whole Q1 saga in a very simple and correct way.
Anyway, yr money yr decision....fundamental wise little change, but hopefully the two big boys will goreng....who knows....
Hi albukhary, R U from Trengganu? Do u know any info on the predominant type of Timber species in GP concessions. It was mentioned that the concession has the tallest and oldest Chengal tree which is very hard wood specie. I have done a rough value estimate and based on this price GP is very undervalued. My only reservation from increasing my position is I m quite ambivalent towards the Management philosophy. R they very professional manager type who will drive up the enterprise value or otherwise. Appreciate your advise on this matter. Terima Kasih.
I didn't buy a single share as not sure whether profit can repeat next quarter in the absence of info. No regret. Sometime certain money is not for me to make.
But I congratulate those people who dare to jump in and make money. Well done
Wasted too much time on analyzing whether its one off profit or the most undervalued share in the universe.....for such a long boring stock in the past few years which suddenly come alive....backed by the resourceful state government....just follow the money.....speculative but could be sexy.....price increased by more than 200% from rm0.30.....how far can it go? Could it be another dbhd in the making??of late it seems that more n more state government joined the party....another one is pasdec......
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....
wt222
1,228 posts
Posted by wt222 > 2014-06-10 20:27 | Report Abuse
I still believe q1 is one off case.anyway,for those who read it differently..-.good luck n happy flying......