12 months FYE 30/6/2024

INCOME STATEMENT
Revenue 1,015.8 m
Gross Profit 305.7 m
Operating Profit 227.2 m
Finance costs 18.5 m
PBT 206.6 m
Net Profit 141.1 m

BALANCE SHEET
NCA 1,595.6m
CA 395.7m
TA 1981.3m

CL 141.9m
NCL 175.6m
TL 454.2m

Equity 1,527.1m

Cash & Eq 283.0m
STL & Borrowings 57.7m
LTL & Borrowings 136.6m

Net Asset per Share 1.58
No of ord shares 967.991m

CASH FLOW STATEMENT
PBT 206.6m
D&A 137.7m
OCFBWCC 395.9m
CFO 391.8m
NCF from operating activities 360.0 m

Acquisition of subsidiaries (52.3m)
Acquisition of PPE (49.3m)

Dividend paid (40.7m)

FINANCIAL INFORMATION
JTIASA
Share price 1.070
Market cap 1.042b
ROE 9.14%
P/B 0.68
NTA 1.58
EPS 14.44 sen
PER 7.41
DPO policy 20%
Dividend 3.2 sen
DY 2.99%

FCF 307.4m

SSLee

Value investing: growth and value are two sides of the same coin.
In my experience, all investing is value investing. You have to decide which game you wish to play (Great/Good/Gruesome companies). You have to decide on your investing time horizon (short term, medium term or long term). You have to decide on your investment objectives (compounding at a certain high rates of returns over 5 to 10 years, at low risk).

You can then choose to buy a company valued at $1 at 50 sen, or, buy a company priced at $1 today but with a value of $2 in 5 years (due to growth, etc). I choose to stay with the latter.

The owners of KMLoong and Crescendo are the same. They have been good stewards of both these companies.
KMLoong: high ROEs, P/B is reasonable, DY is 5%+.
Well managed. Growth is slow and steady; but more challenging going forward.

Investing is a journey and also an experiential one. You have the company's business and the share price. Stay focus on the company's business ALWAYS. Share price should not influence you so much, it is only there for you to take advantage of. Of course, if price influences an investor emotionally, he/she will not be a safe investor.

SSLee

How to be fabulously rich? Stay with quality companies for the long term (5, 10, 15, 20 or more years).

Compare JTiasa and KMLoong

Look at the historical 10 or 20 years revenues and earnings.
Which company had consistent and growing revenues and earnings? JTiasa: earnings were volatile. There were years when these were losses. Losses for a plantation stock???

Which company had rewarded its shareholders more over the last 10 years? Look at the price charts of these 2 companies.
Why are their price charts so different? Which would you have preferred, on hindsight? :-)

Have a great investing philosophy and stay within it. I never invest for the short term (very rarely).

Among the top plantation stocks in Malaysia is Kim Loong. It is a very well managed plantation company. Those who have invested in Kim Loong are laughing all the way to the banks.

Cannot say the same thing for TSH recommended by our Singaporean friend, who bought at 1.78 and now trying to claw back his losses through hyper-activities.

Most money in the stock market are made by those who know how to identify quality companies, buying them at fair or low prices, holding them for the long term and just sitting on their asses. Time in the market, and not timing the market.

htt ps:/ /stream-asset.sto ckbit.c om/stream_85139_6c710889-df17-460a-b04e-77d5e8ebd60b_1.pdf

Company Background

• Kim Loong Resources Bhd’s (KLR) holding company, Syarikat Kim Loong Sdn Bhd,
had its humble start in 1967 with a 1000-ac rubber plantation estate in Ulu Tiram,
Johor. KLR was listed on the main market of Bursa Malaysia in year 2000 and
currently having a market capitalisation of close to RM1.9bn. KLR is primarily
involved in oil palm cultivation and related businesses.

• As at FY23, the group’s total planted area stood at 16,263-ha of which 91% are
fully planted with oil palms. Out of the total planted area, approximately 76%
comprise mature palms above 6 years old, 13% are young mature below 6 years
old while the remaining 11% are at an immature stage. KLR’s plantations are located in the states of Johor, Sabah and Sarawak.

• Additionally, the Group also owns and operates 3 palm oil mills which are
strategically located within the vicinity of its plantations in Kota Tinggi, Johor and in Keningau and Telupid, Sabah. Currently, the processing capacity of KLR’s 3 palm oil mills are 100 MT/hour (Kota Tinggi mill), 90 MT/hour (Keningau Mill) and 60
MT/hour (Telupid Mill) respectively.

• At the same time, we understand that KLR has begun supplying power to TNB/SESB through its 1.8MW for Kota Tinggi mill and 2.0MW for Keningau mill. Also, KLR are looking to commissioned for another 1.5MW for their Telupid mill in 2HFY24.

TA Research
9.9.2024

FFP Production Growth
FY 2025: projected a %% increase in FFB production growth. and hopeful the volatile CPO prices stabilise and averaging at RM 4000 / tonnes. Rising cost environment poses tremendous challenges. New revenue streams from selling palm shells to 3rd parties, and frommits solvent extraction plants, helped counterbalance the increased expenses.

Expansion & Land Acquisition
Challenges faced are high land prices and ESG restrictions.
Group is exploring coconut plantation, in experimental stage, as a potential area for growth and earnings diversification.
Carbon credits market, particularly for its plantations, could provide an additional revenue stream

Renewable Energy & Future Plans
Supply electricity from its biogas plants to Tenaga.
Exploring solar farm prunects on its plantation land, but may not be feasible, due to the remote locations of the group's properties.

VALUATION
TP RM 2.50/share, based on CY25 PER OF 16X.
Due to LIMITED UPSIDE POTENTIALS at current price level, TA Research downgrade KIMLoong from Buy to HOLD.

TA Research
9.9.2024

For 2025, group is focused on earnings recovery, expecting 5% growth in FFB production and explores new revenue streams, looking at coconut plantations.


Past performance:
FY 2023: record breaking performance
FY 2024: slight decline
FY 2025: Capex projected at RM 60mm, for upgrading mill equipment and replanting efforts. Additional USD 80m formconstruction of new mill in Sarawak over the next 2-3 years.
Dividend policy: targets 30% profit distribution, in recent years this has consistently paid out over 80%. FY24, dividend payout slightly reduced in keeping with earning pressure.

Plantation Operations:
Replanting about 1000 ha per year over the next 5 years
Striving to increase production to 350k tonnes from estimated 330k tonnes in FY24.
The three biogas plants, now provide excess power to the grid for some additional revenue, though the impack on profitability may not be substantial.

Our Singaporean friend

Less promotions. Please post more quality posts.

calvintaneng, our dearest Singaporean friend,

It should be obvious from the many comments above, you are irritating a lot of people in this forum. Perhaps, our Singaporean friend should be kind enough on HIMSELF, to tone down his behaviour and activities. My advice to our Singaporean friend is to reduce his activities by 90%: hopefully, by staying focus and disciplined, our Singaporean friend can produce more high quality posts. For now, our Singaporean friend is just spamming. Many have noticed our Singaporean friend's posting the same repeatedly in many threads often. Surprisingly, many tolerated our Singaporean friend's indiscretion due to their politeness.

👏👏👏👏

>>>
Posted by Sslee > 3 hours ago | Report Abuse

So taking profit is not a bad idea as you do not need to hold your beloved stocks forever.
>>>

Keep managing your portfolio. Optimise its quality and potential returns.

If you keep selling all your winners (just because you panic), you will be left with ______ in your portfolio.

Buffett buys and sells based on pricing and not on timing.

SSLee. It is extremely difficult to time the market. Those who claim to be able to do so consistently are not honest.

However, at the extreme of the market, you may have a high probability of being more right than wrong. It is just that pricing coincides with timing at the extremes of the market. Even then, Buffett called the bottom of the market in Sept 2008, coinciding with the Lehman bankruptcy. The market continued to go down and only reverted in March 2009.

At the top and the very bottom of the price trend, only a few transactions occurred

As usual, not much of value from our Singaporean friend. Just a lot of "hot air".

Banks in US are risky investments at moment. Look at SVB bank, the bank that failed last year. Due to high Fed interest rates, the bonds it held was below book value and when there was a run on the bank, it was illiquid and went under very quickly. Banks are highly leveraged.

It is also known that many banks in US have balance sheets not dissimilar to that of SVB.

Why is Buffett raising cash? He probably think the market was overvalued and maybe banks are risky bets today. Buffett is a master of market "timing" too. He has been right in the few times he called the market tops and bottoms; and these were often at the extremes of the markets.

CRG

CRG announced a very good last 1H results. Its half yearly earnings, when annualised, exceeded the earnings of Bonia. CRG was a company within Bonia before it was listed in LEAP separately.

Sadly, this company maybe taken private by the major shareholder.

Taking this company out of Bonia, listing it separately and now making an offer to acquire all its to take it private, this does not look good for the owners of Bonia. How is the management's interest aligned with those of the shareholders of Bonia or CRG?

Very good last 1H results. Its half yearly earnings, when annualised, exceeded the earnings of Bonia. CRG was a company within Bonia before it was listed in LEAP separately.

Sadly, this company maybe taken private by the major shareholder.

Taking this company out of Bonia, listing it separately and now making an offer to acquire all its to take it private, this does not look good for the owners of Bonia. How is the management's interest aligned with those of the shareholders of Bonia or CRG?

Value investors avoid selling when bad news is temporary. Single-quarter profit margin slippage should provoke questions, but not sales orders. If investigation shows deeper problems, then the condition might be permanent and selling indicated. Permanent deterioration requires more evidence.

When in doubt concerning where deterioration is temporary or permanent, value investing might include a hedging strategy. This would call for selling some but less than all shares held.

Value investors never sell solely due to falling prices. They require some evidence related to the declining intrinsic value of the business to warrant a revision in the hold-or-sell calculus. Stock price fluctuations are far too fickle to influence such an important decision.

In the case of a preset policy to sell when price reaches a certain high level, many value investors follow the same mixed strategy adhered to when unsure whether a development is permanent or temporary: selling some, but not all.

When to sell?

The same factors used to select and avoid stocks are used to decide which stocks to sell and when.


Sales are indicated when the key factors supporting an original buy are gone. Here is a summary of such factors:

(1) Internal:

dubious management behaviour,
vague disclosure or complex accounting,
aggressively increased merger activity,
dizzying executive compensation packages.

(2) External:

intensifying new competition,
disruptive technological onslaughts,
deregulation,
declining inventory and receivables turns.

(3) Economic:

shrunken profit margins;
declining returns on equity, assets, and investment;
earnings erosion;
debt increased aggressively in relation to equity;
deterioration in current and quick ratios.

The same factors used to select and avoid stocks are used to decide which stocks to sell and when.


Sales are indicated when the key factors supporting an original buy are gone. Here is a summary of such factors:

(1) Internal:

dubious management behaviour,
vague disclosure or complex accounting,
aggressively increased merger activity,
dizzying executive compensation packages.

(2) External:

intensifying new competition,
disruptive technological onslaughts,
deregulation,
declining inventory and
receivables turns.

(3) Economic:

shrunken profit margins;
declining returns on equity, assets, and investment;
earnings erosion;
debt increased aggressively in relation to equity;
deterioration in current and quick ratios.

Our Singapore friend,

Please stay focus on your promotion. You sounds more like a salesman promoting the many "goodies" of TSH without staying with the most important facts.

Wouldn't it be better for your followers to learn from you:

1. The businesses of TSH
2. The assets of TSH. Its balance sheet. Its strength and its weaknesses.
3. The 10 years revenues, earnings, EPS and DPS of TSH. How has TSH rewarded its shareholders in the past? How TSH will be rewarding its shareholders in the future?
4. Maybe you can project its future cash flows going forward. What will be its cash flow from operations over the next 5 years? What will be its capex for the next 5 years? What will be its projected FCF for the next 5 years? Of course, these figures should be conservatively estimated.
5. How do you value TSH based on your assumptions? Be conservative in your assumptions? Hopefully, our Singaporean friend can also show here how "undervalued" TSH is?

Value should be so obvious, you do not need to use high power mathematics.

Valuation
Post the earnings adjustment, we have lowered TSH’s TP to RM1.07 (previously RM1.22), based on CY25 PER of 16x. Maintain Sell.
Source: TA Research - 23 Aug 2024

OTB collects fees to share his research with his subscribers.
OTB also manages funds for those who are willing to place their money with him.
OTOH, OTB too has shared his picks in this forum. It is often difficult to know if the sharing was truly altruistic or otherwise for various reasons.
In any case, often conflict of interests may occur from such sharing.

Our Singaporean friend claiming that Nusantara will be bigger than Shenzhen. This is typical of our Singaporean friend, sharing his very bombastic elated promotions. This is not dissimilar to him sharing he sold 8 houses to buy his eagle-eyed gem NETX; and it was so important for him to share this with his followers. 🤔😪

Growth? Slow, stalwart or fast.
Cyclical?
Asset play?
Turnaround?


Or

Just a Singaporean hype to dump promotion?

😉

So which category of Peter Lynch's stock is TSH?

TSH

ROE 4.75%
NTA RM 1.456
GROWTH negative

Our dear Singaporean cannon, please start your promotions with the return on equity of the stock you are promoting. It is easier for those who are more knowledgeable than you to comprehend clearly. How much equity is employed by the company to earn RM1 of income?

On 'Great' businesses, Buffett says,

"Long-term competitive advantage in a stable industry is what we seek in a business.

If that comes with rapid organic growth, great. But even without organic growth, such a business is rewarding.

We will simply take the lush earnings of the business and use them to buy similar businesses elsewhere. There's no rule that you have to invest money where you've earned it.

Indeed, it's often a mistake to do so: Truly great businesses, earning huge returns on tangible assets, can't for any extended period reinvest a large portion of their earnings internally at high rates of return."

=======

Truly GREAT companies, earn high profits on their net tangible assets. These companies have high ROEs. Look for ROEs > 15% annually.

Example: An enterpreneur started a new business by buying a machine for $X. This machine generated $X of net profit in a year. The ROE for this business was 100%. This return is exceptionallly high. If the company buys another machine, its business would not be increased, as one machine was enough for its business. Thus, reinvesting the profit back into the same business is not going to improve its profits, as the same increment in profits can be generated by the one machine alone. Thus, that profit is better redeploy to earn returns elsewhere.

Capital Expenditure

A great company with a Durable Competitive Advantage will have a ratio of Capital Expenditures to Net Income of less than 25%. Less is better.

Capital Expenditures are expenses on:
- fixed assets such as equipment, property, or industrial buildings
- fixing problems with an asset
- preparing an asset to be used in business
- restoring property
- starting new businesses

A good company will have a ratio of Capital Expenditures to Net Income of less than 50%.

A GREAT company with a Durable Competitive Advantage will have a ratio of less than 25%.

Less is better.

On 'Great' businesses, Buffett says, "Long-term competitive advantage in a stable industry is what we seek in a business.

If that comes with rapid organic growth, great.
But even without organic growth, such a business is rewarding.
We will simply take the lush earnings of the business and use them to buy similar businesses elsewhere.
There's no rule that you have to invest money where you've earned it.
Indeed, it's often a mistake to do so: Truly great businesses, earning huge returns on tangible assets, can't for any extended period reinvest a large portion of their earnings internally at high rates of return."

Unless you find the prices of a great company really offensive, he advises against trying to time the market or waiting for a financial crisis to buy stocks at a discount, as great companies are rare and difficult to find.

He advises against trying to time the market or waiting for a financial crisis to buy stocks at a discount, as great companies are rare and difficult to find. Instead, Buffett suggests buying and holding onto these companies long-term, with the confidence that they will thrive over time.

And by definition, a great company is one that’s going to remain great for 30 years.

If it’s going to be a great company for three years, you know, it ain’t a great company.

Look for truly great companies that will remain strong for decades.

Great companies are rare and difficult to find.

During the 1996 Berkshire Hathaway Annual Meeting, Warren Buffett discussed the value of investing in truly great companies that will remain strong for decades.

He advises against trying to time the market or waiting for a financial crisis to buy stocks at a discount, as great companies are rare and difficult to find. Instead, Buffett suggests buying and holding onto these companies long-term, with the confidence that they will thrive over time.

Here’s an excerpt from the meeting:

Buffett: Yeah. Well, I won’t comment on the three companies that you’ve named. But in general terms, unless you find the prices of a great company really offensive, if you feel you’ve identified it — And by definition, a great company is one that’s going to remain great for 30 years.

If it’s going to be a great company for three years, you know, it ain’t a great company. I mean, it — (Laughter) So, you really want to go along with the idea of something that, if you were going to take a trip for 20 years, you wouldn’t feel bad leaving the money in with no orders with your broker and no power of attorney or anything, and you just go on the trip.

And you know you come back, and it’s going to be a terribly strong company. I think it’s better just to own them. I mean, you know, we could attempt to buy and sell some of the things that we own that we think are fine businesses. But they’re too hard to find.

I mean, we found See’s Candy in 1972, or we find, here and there, we get the opportunity to do something. But they’re too hard to find. So, to sit there and hope that you buy them in the throes of some panic, you know, that you sort of take the attitude of a mortician, you know, waiting for a flu epidemic or something.

I mean — (laughter) — it — I’m not sure that will be a great technique. I mean, it may be great if you inherit. You know, Paul Getty inherited the money at the bottom, in ’32. I mean, he didn’t inherit it exactly. He talked his mother out of it. But — (laughter) — it’s true, actually.

You can find the entire discussion here:

https://acquirersmultiple.com/2024/08/warren-buffett-dont-wait-for-a-price-drop-to-buy-a-great-company/

...
Posted by calvintaneng > Aug 31, 2024 1:32 PM | Report Abuse

For every one who come here to post truth or falsehood all can check out the facts

A lying tongue is but for a moment

There is a God in heaven

Better tell the truth

Only what is true will last

Not lying tongues

''''


Our Singaporean friend told lies for 2 years while promoting NETX. Since I have experienced and observed our Singaporean friend in the NETX thread, his reputation was shattered. No integrity. Buffett advises not to have any dealings with such characters, for good reasons. :-)

Good morning

For those who understand what our Singaporean friend shared on TSH, please simplify his posts for us here. Thks.

PM CORP

29.4.2016 28 SEN
7.3.2024 18 SEN
30.8.2024 17.5 SEN

Velesto

Year Earnings
2020 -492m
2021 -90.8m
2022 -100.0m
2023 +99.5m
2024 110 m (1H 2024)

Price 20.5 sen per share
Market Cap 1.684b

During the 1996 Berkshire Hathaway Annual Meeting, Warren Buffett discussed the value of investing in truly great companies that will remain strong for decades.
He advises against trying to time the market or waiting for a financial crisis to buy stocks at a discount, as great companies are rare and difficult to find. Instead, Buffett suggests buying and holding onto these companies long-term, with the confidence that they will thrive over time.
Here’s an excerpt from the meeting:
Buffett: Yeah. Well, I won’t comment on the three companies that you’ve named. But in general terms, unless you find the prices of a great company really offensive, if you feel you’ve identified it — And by definition, a great company is one that’s going to remain great for 30 years.
If it’s going to be a great company for three years, you know, it ain’t a great company. I mean, it — (Laughter) So, you really want to go along with the idea of something that, if you were going to take a trip for 20 years, you wouldn’t feel bad leaving the money in with no orders with your broker and no power of attorney or anything, and you just go on the trip.
And you know you come back, and it’s going to be a terribly strong company. I think it’s better just to own them. I mean, you know, we could attempt to buy and sell some of the things that we own that we think are fine businesses. But they’re too hard to find.
I mean, we found See’s Candy in 1972, or we find, here and there, we get the opportunity to do something. But they’re too hard to find. So, to sit there and hope that you buy them in the throes of some panic, you know, that you sort of take the attitude of a mortician, you know, waiting for a flu epidemic or something.
I mean — (laughter) — it — I’m not sure that will be a great technique. I mean, it may be great if you inherit. You know, Paul Getty inherited the money at the bottom, in ’32. I mean, he didn’t inherit it exactly. He talked his mother out of it. But — (laughter) — it’s true, actually.
You can find the entire discussion here:

https://acquirersmultiple.com/2024/08/warren-buffett-dont-wait-for-a-price-drop-to-buy-a-great-company/

During the 1996 Berkshire Hathaway Annual Meeting, Warren Buffett discussed the value of investing in truly great companies that will remain strong for decades.
He advises against trying to time the market or waiting for a financial crisis to buy stocks at a discount, as great companies are rare and difficult to find. Instead, Buffett suggests buying and holding onto these companies long-term, with the confidence that they will thrive over time.
Here’s an excerpt from the meeting:
Buffett: Yeah. Well, I won’t comment on the three companies that you’ve named. But in general terms, unless you find the prices of a great company really offensive, if you feel you’ve identified it — And by definition, a great company is one that’s going to remain great for 30 years.
If it’s going to be a great company for three years, you know, it ain’t a great company. I mean, it — (Laughter) So, you really want to go along with the idea of something that, if you were going to take a trip for 20 years, you wouldn’t feel bad leaving the money in with no orders with your broker and no power of attorney or anything, and you just go on the trip.
And you know you come back, and it’s going to be a terribly strong company. I think it’s better just to own them. I mean, you know, we could attempt to buy and sell some of the things that we own that we think are fine businesses. But they’re too hard to find.
I mean, we found See’s Candy in 1972, or we find, here and there, we get the opportunity to do something. But they’re too hard to find. So, to sit there and hope that you buy them in the throes of some panic, you know, that you sort of take the attitude of a mortician, you know, waiting for a flu epidemic or something.
I mean — (laughter) — it — I’m not sure that will be a great technique. I mean, it may be great if you inherit. You know, Paul Getty inherited the money at the bottom, in ’32. I mean, he didn’t inherit it exactly. He talked his mother out of it. But — (laughter) — it’s true, actually.
You can find the entire discussion here:

https://acquirersmultiple.com/2024/08/warren-buffett-dont-wait-for-a-price-drop-to-buy-a-great-company/

Soon to be delist from LEAP and transfers to ACE.

Another very good quarterly result. Insiders adding to their share-holdings.

Tenaga reported a very good latest quarter.

Its old business is kaput. Will need to reinvent a new business direction.

Those who managed to sell in the last price hike were lucky indeed.

Steady growth in revenues, earnings and dividends.
Earnings growth is faster than revenue growth.

ROE 10.64 NTA 18.19
Price 21.26
PE 10.95 P/B 1.17 DY 2.78%

At present price, it is trading at just below fair price.