KLK announced on 26th August that they bought 17610 ha planted/plantable land (which 10816 ha planted+6794 ha plantable) in Kalimantan from TSH for USD110.1m, or about 4.2*110.1 = RM462m.
The market price for plantable land in Kalimantan is about RM500 per ha.
Therefore, the price for planted oil palm estate is about = (462000000 - 500*6794) / 10816 = RM42400 per ha.
CBIP own 13502 ha planted oil palm in Kalimantan,
Assuming the same valuation, it worth = 13502*42400 = RM572m,
I am so happy to see many constructive comments on this company.
CBIP plantation segment is still in its investment stage, A lot of its retained profit are put into this segment. I am not too worry about the losses incurred because it has to take care of the cost of planting the new acreage and maintaining the young palms. I hope this can explain why the performance in Q419 & Q120 as well as Q220 are disappointing.
This situation should improve as more palms are coming into maturity with CPO prices maintaining at current prices as evidence by the encouraging improvement in revenue.
'If you observed long enough, most of the spike was due to SBB, and slowly get pull back.' A very good observation by kinuxian. Not many IBs and or retail players are involved at the moment. The day will come.
BTW, SBB also means it is investing in itself. Confidence & patience shown by its management.
As mentioned by i3gambler, they are instead investing big in palm oil plantation. Another good piece of work by i3gambler. When and if they decided to devest from plantation, it will be a BIG rainfall profit to its loyal shareholders. Otherwise, the enhanced future earning from this segment will bring about dividend growth.
The first interim dividend of 2 sens is a pleasant surprise to me. A total of 4 sens equivalent to 4.4% dividend yield for this year will be good.
I am not too sure about the contributions from SPV, oil mill and refinery plant.
Core Net Profit (CNP)? Both HLG & KENANGA use CNP which is lower than the actual Net profit to underestimate the earning power of CBIP. Both also came out with difference figures which show that they can manipulate the figures to support their wanted conclusion.
ATM, the POE is the core business. I think the importance of POE will be significantly reduced in the coming 2-3 years. Both in term of revenue &Earnings.
HLG gives a sum-of-parts derived TP of RM0.83 which is way below its reported NTAB of 1.46. We all know that the Kalimantan is worth more than that.
Kenanga is giving a higher TP of RM0.87 base on a PE of 11.8. Is it fair? I think that is up to individual to decide.
For the period ended 30/6/2020, Plantation segment alone (excluding share of results of associates & JV) is 13% of the total revenue. This figure will increase significantly as more palms are planted and matured together with higher CPO prices.
This share is definitely undervalue, just cannot quantify it. The boss has been ploughing back the retained profit for a long time by venturing into SPV, buying refinery, developing the Kalimantan plantation and SBB. My feeling is that it is about time to mature.
Yes, privatisation is a possibility. same as Batu Kawan. But I think the chance of Bkwan is higher. There are many other means that the boss can cash in later.
Kido asked a very good question. I was hoping some sifu will enlighten us.
In my opinion, I think it is a good move. The EPS & NTA per share will increase & PE ratio will be lower. The current market price will looks cheaper. Unfortunately, the share trading system I'm using has not updated the figures.
Furthermore, I guess the company can start SBB more aggressively without having to get a new mandate from the shareholders.
I also notice that CB Lim has done some family shareholdings reshuffling to avoid a Mandatory General Offer.
Apart from cancellation, the treasury shares can be: 1) Distributed to shareholder as dividend, kind of a mini bonus issue, creating unnecessary odd lot, in this case I think it imply that the company is in tight cash flow, not enough cash to pay cash dividend. 2) Sold back to the market, in this case I think it imply that the company need money.
CBIP decided to cancel the treasury shares, so I think it is meaning their cash flow is good.
Cash in hand : Rm142mil (should be more after disposal of land)
CPO price > Rm3,300
All segments including POE, SPV, refinery, oil mill and plantations are doing better last Q. I'm expecting a much better Q results.
What nonsense is this sum-of-parts derived TP of RM0.83 by HLG?
Kenanga maintain UNDERPERFORM with an unchanged TP of RM0.780 based on FY21E PER of 9.9x. They assign a PE of 23.3 to KGB and give two back to back favourable reports on KGB and pushed up the price. Although I own KGB too, I simply can't see the logic.
Hopefully, the IBs will change their mind and start some rotational play on KLSE counters.
The Group’s revenue and profit before taxation for the financial period ended 30 September 2020 increased by 32% and 153% respective as compared to the same financial period last year.
The increase in the Group’s revenue was mainly due to a new stream of revenue generated by the refinery segment as well as the increase in revenue by the palm oil plantations and special purpose vehicles segments. The increase in the Group’s profit before taxation was mainly due to higher contribution from the palm oil equipment and engineering segment, lower loss incurred by the palm oil plantations segment and the improved share of results of associates and joint venture.
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....
wajatimur_28
671 posts
Posted by wajatimur_28 > 2020-08-21 12:44 | Report Abuse
Yup..I am also monitoring it.. what's going on actually?