everybody blames the hidden hand (or sharks) when it doesn't move the way the want it to

rights issue bro

why? no confidence in melons?

even with the run up in price since last friday, STILL only trading at 15x PE (trailing 4 quarters). Cheap.

they will be deep deep inside plantations - will take days for them to come out anywhere (if they can even find their way out)

don't underestimate the MCO impact on PetDag's 2Q performance - their revenue split is 50:50 retail and commercial. Although 80% of retail and commercial activity has resumed since June, airlines have not resumed full operations.

back in 2017, M'sia consumed 67k barrels of jet fuel per day https://www.theglobaleconomy.com/Malaysia/jet_fuel_consumption/ which is about RM12mil lost revenue per day (USD45 per barrel x USD1: RM4.2). In 1 quarter, thats lost revenue of over RM1bn.

yes! P/E 4000x

the lack of volume is so frustrating. here you have a fantastically efficient plantation player. solid results every quarter (even with CPO price was shit). Production not affected at all by Covid or MCO and traders are instead focused on counters like RSAWIT (cannot even make money at RM3,000/MT), TSH (profitable and well managed but overloaded with debt), JTIASA (same issue with RSAWIT) and FGV (nonsense)

fantastic Q2 results

fake fake news = real news?

no index to see egg price unfortunately. local gomen announcements are also very delayed. easiest is to go to the supermarket and see for yourself.

me leh? I ask the aunties to check for me. 2Q egg prices not so good, start of 3Q got some recovery.

ahem. big project from a related company JV la. ini left pocket to right pocket.

exactly - and its not like the 08/09 GFC prevented people from coming to the casino. Looking at historical levels to justify the "bottom" is fool's gold.

https://www.theedgemarkets.com/article/hlib-research-foresees-stronger-2h-earnings-ccm-improved-sales-volume

your NTA position is slightly inflated because you must take into account the MCO period with limited sales but overheads continuing which would've eroded their cash position quite significantly.

oh this tan sri is very fishy

damn free is it? everyday posting the same stuff

consider GENM-HB https://klse.i3investor.com/servlets/stk/overview/4715HB.jsp to hedge your exposure

this is hot money coming in from punters (average transaction value = RM7k). its can disappear tomorrow, or it can stay for a week. just keep monitoring la

@ceasarlcy, my guess? retail players are slowly rotating from glove to pharma players as part of the wider "vaccine play" and all got a hardon for counters with words like "pharma" or "chemical" in the name

good to see this counter finally getting some love.

and coming back down again...
https://www.malaymail.com/news/malaysia/2020/07/19/domestic-trade-ministry-prices-of-chicken-showing-downward-trend/1885930

proper useless plantation counter, CPO at RM3k still can't turn a profit, what more at 2Q2020 prices?

famous already:
"Texchem Resources Bhd has received an unusual market activity enquiry from Bursa Malaysia Securities over the spike in the company’s share price and volume. In response, the group said the trading activity might be due to an article published by a person named Calvin Tan Eng with regards to the company venturing into formulating latex glove chemical. It added that the article had extracted the information from the company’s magazine “Texview”, a regular quarterly in-house publication, which was made available in the company’s website in early November 2019."

from the Edge

i think everyone here needs to keep one eye on the economies that are experiencing rapid COVID case expansions i.e. India, US, Brazil because if these economies (re)enter shutdown, BDI is gonna collapse overnight again.

Before today PH plus claimed they had 107 MPs yet 109 voted against the replacement of the speaker - who are the phantom 2 MPs?

just shows that people will buy anything in this market.

unlikely, most of Bumi's debt is USD so you're looking at LIBOR-pegged lending. any interest cost savings would already be priced in since the Fed cut rates to zero.

@yoyo I agree though the phrase 'too racist' suggests that there is an acceptable level of racist.
Racist is racist. Stop being racist.

hi Sneakpeek, you can find a summary ageing report on pg 121 of the annual report

@Quickgain, i totally agree. Am completely confused by the market's interest in this lossmaking plantation counter (if this counter couldn't even report an operating profit when CPO prices were in the high 2000s, it will surely be worse in 1Q2020)

Gambling, smoking and liquor contributes about RM12bil to our government tax revenues annually, we simply cannot afford to give that up

https://themalaysianreserve.com/2019/11/14/gamblers-contribute-rm4-5b-to-sin-tax/#:~:text=5%20billion%20from%20sin%20taxes,from%20tobacco%20products%20worth%20RM4.

Disappointed by the 4Q19 results..

calvin, where did you get your RM74mil receivables figure from?

I think we need to temper our expectations of FPI's 4Q result.

Historically, (FY18, FY17, FY16) the 3rd quarter has always been FPI's best reporting quarter so it is quite unlikely to show q-o-q growth and furthermore, FPI has been experiencing contraction in its gross margins for FY19 (YTD gross margin is 10.2% vs. 12.7% in 9M18).

While I do hope for a solid 4Q result and dividend, let's not get ahead of ourselves.

Q4 results just announced, I was off on the operating profit figure because of higher operating costs (not disclosed in the report) but earnings per share did improve to 3.11 sen per share.

Solid quarter overall, expecting more of the same in 1Q2020

https://www.theedgemarkets.com/article/virus-hits-chinas-gold-jewelry-demand-shoppers-stay-away

In short, gold prices have trended sideways since the start of the year because of the timing of the coronavirus outbreak which affected demand during what is (usually) the sector's busiest period (CNY)

Hi moneygame1,

You have a point, scenario 3 could absolutely happen. Tan Sri controls something like 70% of Eversendai so there aren't enough dissenting shareholders to kick up a fuss if they don't collect the receivables.

It is still something I disagree with from a governance perspective, as it is tantamount to a public company bailing out Tan Sri's private venture. So if I were a shareholder (which I am not) I would vote no to this transaction.

Its been good discussing this case with you, I appreciate your perspective on the matter.

Hi moneygame1,

My point of view is basically this:
The project is already problematic, it is behind schedule and (based on the late payment from Vahana to Eversendai) has probably gone over budget. I will paint 2 scenarios:

Scenario 1 - Eversendai acquires Vahana and its assets. The receivables owed from Vahana to Eversendai are effectively cancelled out (since these are interco). The puchase of Vahana from Eversendai is settled using RCPS and hence no cash proceeds come into Eversendai.

Effectively Eversendai will no longer collect any further cash from Vahana (the RM235mil receivables owed as at Dec'18 and any additional work done on the contract) AND it will likely have to incur additional borrowings to fund the remainder of the contract. Eversendai's cash position as at Sept'19 is RM19mil (exclude bank overdrafts and pledged deposits), while its gearing stood at 1.51 times.

Scenario 2 - Eversendai COLLECTS the RM253mil receivables owed by Vahana (and the remainder of its contract sum) and uses it to pay down its short term debt (every RM100mil of debt paid down will reduce gearing by 0.10x and interest expense by RM4mil p.a.). With the healthier cash pile, maybe the company could even declare its first dividend since 2016 (whereas in the RCPS scenario, the dividend will be payable to Tan Sri only, screwing minorities even further).

What i'm trying to say is (in my opinion), no matter what the purchase consideration is for Vahana's assets, the bigger issue for Eversendai should be paring down its debt and replenishing its cash coffers, not acquiring more long term assets. The Group's balance sheet is stretched to its limit as is. As at Sept'19 the Group has RM900mil in trade and other payables outstanding + RM872mil in short term borrowings compared to RM2.1bil receivables. The Group regularly undertakes over RM1.0bil worth of construction works annually, all it takes is one or two big contract disputes or late payments and the company will hit a liquidity crunch.

Yesterday, Eversendai Corporation Berhad ("Eversendai") announced that it received an unsolicited offer to purchase 100% of Vahana Offshore (M) Sdn Bhd ("Vahana") to be settled via the issuance of RCPS. The rationale of the transaction (as explained in the letter of offer) is that it gives Eversendai shareholders the opportunity to purchase 2 oil and gas assets (1 already deployed, 1 to be completed in mid-2021) chartered to ARAMCO:

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3022159

If you scroll back to Eversendai's announcements back in 2014 you will see the original contract award from Vahana Offshore (S) Pte Ltd (the company names are slightly different, but you will notice the liftboat names are consistent, Arjun and Aryan):

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=1767247

Readers will also note that Vahana is owned by Tan Sri AK Nathan (Eversendai majority shareholder) and his family.

So what has happened here? Lets speculate:
1) Eversendai in 2014 pushed through a RPT to build liftboats (the company's first venture into the oil & gas industry) for a company owned by Tan Sri at what we assume to be market rates. Eversendai minorities presumably approved this because well, the balance sheet risk will be on Tan Sri under his private company, right?

2) In 2020, a whole SIX YEARS after the initial award of the contract, only one of the liftboats has been completed and chartered and an Eversendai minority shareholders are given the "opportunity" to buy into a company owning one completed asset and one asset under construction. And the proposed purchase price is not cash, only RCPS, so in effect Tan Sri is just increasing his interest in Eversendai, right?

3) Note 20 (Trade Receivables) of Eversendai's 2018 Annual Report stated approx. RM235mil of trade receivables are owed by a related party (if you refer to the Key Audit Matters stated in the Independent Auditors Report, you will see this is for the same contract - the construction of liftboats for a related party). It is at this point that i would like to point out to readers that the original contract awarded from Vahana to Eversendai was RM580mil (so in effect, SIX years after the contract awarded, [and here we assume with one boat delivered and one halfway complete, the percentage work done on the contract is about 75% or RM435mil] MORE THAN HALF [54%] of this contract amount has not been paid to Eversendai). These amounts were not visible in Eversendai's 2016 or 2017 Annual Reports which lead me to believe that payment terms of the contract it signed with Vahana are very backloaded in nature.

4) What has happened here? Well we can effectively speculate based on publicly available information:
(a) Tan Sri via his private company entered into a VERY FAVOURABLE related party transaction with Eversendai where the public listed company effectively funded his private venture to build liftboats.
(b) Construction on the liftboats have been VERY delayed because no matter how high tech your liftboat is, there is no way it should take 6-7 years just to finish 2. (For reference Bumi Armada, which build FPSOs which are far larger, will take about 3 years to deploy an FPSO which cost billions of ringgit).
(c) Even after the first liftboat has been delivered (in mid-2018 https://www.nst.com.my/business/2018/04/357989/eversendai-eyes-us200m-job), Vahana DRAGGED the payment to Eversendai, so shareholders continue to fund his private venture.
(d) And finally, now he OFFERS Eversendai minorities the OPPORTUNITY to buy this very costly mistake. Why? Presumably because Vahana doesn't have the cash to pay the amounts owed to Eversendai.

Guys, if any of you hold the shares PLEASE vote against this abomination of a deal at the EGM. Tan Sri cannot continue to shortchange the minorities of Eversendai by making them buy over his expensive mistake. It has been one questionable decision after another when it comes to this contract and you all deserve better.

There are 2 upcoming issues with this counter which you should take into consideration of your respective target price(s):

1) The payment claim made by MMHE (USD30m) has been adjourned until 18 March 2020. Who knows what the outcome of that will be but the company certainly cannot afford to pay out RM120mil++ in cash (Sept'19 closing bank balance = RM8.7 mil)

2) Private placement of shares + capitalization of debt owed to its holding co will result in the issuance of 223 mil new shares (about 42% of its current share capital) and that is BEFORE accounting for the exercise of 365mil new warrants (to be issued). The company had just written to SC for an extension for #2 which (if approved) gives them up to 3Q'20 to complete.

While the MD has come out to say he is bullish on the company's prospects in 2020 (which is fair, based on recent contract wins and deliveries) these two events are looming over the company in 2020 and shareholders who bought in before the recent price drop (like myself) will likely have to hold this counter for the mid to long term (The free warrants are a sweetener too).

Guys, based on production announcements made on Bursa, CPO production rose 51% y-o-y whereas Log production rose 28% y-o-y. Anticipating a solid 4Q for this counter

Calvin I've definitely taken notice of your NETX posts (it is hard not to) but anyway that counter is not really within my risk appetite.

Wish you all the best with that investment.

Sadly the only minority shareholder with a loud enough voice to make any demands is Urusharta Jamaah (the Tabung Haji SPV) with a 7% stake.

Tabung Haji has been building its stake in this counter since 1Q2017 and basically seen a return on investment of between negative 30-50%.

In Nov'19 UJ in a statement said that the transfer of non-performing assets from TH to UJ was complete: https://www.theedgemarkets.com/article/tabung-haji-asset-transfer-part-rescue-restructuring-plan-completed-%E2%80%94-urusharta-jamaah

Which i read to mean that any actions to rehabilitate their distressed assets e.g. selling off properties, changing management of nonperforming companies will start to take place soon. We already saw some initial actions with the restoration of TH Heavy's PETRONAS license and TH Plantation's asset sale.

I don't have any inside news on UJ but I cannot imagine they are happy with these directors pocketing upwards of RM25mil in salaries and bonuses p.a. while sitting on a massive pile of cash.

SO - what are the next steps forward? I'd imagine it will be a really raucous environment in the next AGM (typically held in end-May) OR if UJ wants to get things moving, perhaps we will even see an EGM called to call for the removal of the Remuneration Committee chairperson.

Definitely a situation to monitor.

Is it really necessary?

Granted, some of our more frequent contributors are very passionate in defending their positions / opinions on certain counters but is it really beneficial to TYPE LIKE THIS?

I appreciate the views of all forum contributors (whether I agree with your views is another matter altogether, I'm not here to make enemies).

But lets all keep the conversation civil and focused on the matter at hand.

https://www.theedgemarkets.com/article/buy-plantation-stocks-recent-selldown-say-analysts

anytime between now and end-Feb'20

The price trend over the past 1 month has been rather confusing. if you look at the reported production statistics alone:
Q3 2019 (Jul-Sept) CPO Production: 36,759MT (average selling price: ~RM2000/MT)
Q4 2019 (Oct-Dec) CPO Production: 35,909MT (average selling price: ~RM2500/MT [conservatively])

there is already an upside of about RM18mil revenue from higher selling prices. Assuming overheads remain unchanged (presumably fertilizer application rate is the same, overheads under control due to Ta Ann management) operating profit should improve by at least RM15-16mil.

Malaysia's total cement production p.a. is only 17.5 million tonnes (equivalent to about RM3.33bn at RM190/MT), so Quality Concrete's RM34bn contract (if real) would've fundamentally changed the Malaysian cement / concrete landscape.

woi @sectionanalyst, stand behind your analyst report la! don't hide!

(their profile) https://klse.i3investor.com/servlets/cube/blog/sectionanalyst.jsp