Many know MKH as a property developer. But the Malaysia property sector had been so over the past 6 to 8 years. Fortunately for MKH it ventured into oil palm plantations in mid 2000s.
If you look at the chart (refer to https://i.postimg.cc/vZWWskv4/MKH-EBIT.png) you can see that while the EBIT contribution from the property development segment had been declining since 2016, that from the plantation segment had been growing. In 2022, the plantation segment accounted for about half of MKH’s EBIT.
So, what does it mean for an investor? • When the property sector recovers, we can expect better overall profit. • Property and oil palm sectors are cyclical but they are affected by different factors. So MKH performance will be less cyclical.
The estates’ strategic positioning within a 100-kilometre radius of Nusantara, the new capital city of Indonesia, places MKHOP in an advantageous position to leverage on the future capital city’s growth. The group is poised to benefit from the economic transformation of East Kalimantan, driven by the development of Nusantara," Chen said in a statement.
Based on an indicative IPO price of 60 sen per share (final IPO price to be determined at a later stage), MKHOP aims to raise RM132 million from the public issue, while the offer for sale will raise RM18.4 million, bringing the total fundraising exercise to RM150.4 million.
Mkh Palm oil has 45,000 acres palm oil in Ikn Nusantara
Tsh Resources has about 150,000 to 200,000 acres remaining palm oil estimates
Out of these 94,700 acres are located near Ikn Nusantara (more than double land size of Mkh palm oil)
Plus Tsh got other palm oil lands in Sabah,Kalimantan and Sumatra
Tsh also got 300,000 acres of forest concession land in Sabah planted with timber
Tsh also taken private Ecowood (just like Klk took ijmplant)
Tsh owns 105 million shares of Innoprise plant Worth Rm137.5 millions
If Tsh just sell away Inno for Rm137.5 mil cash Tsh will be debt free instantly with more than Rm60 mil surplus cash
Tsh is awaiting Rm273 mil from part two land sold About 18 sen cash per share
Tsh has a 50/50 Joint Venture Factory with Wilmar in Sabah. Worth Rm100 Millions book value
Tsh also got biogas and bioelectricity Tsh also got its original Cocoa manufacturing business Tsh also got its own palm oil nurseries growing the most productive palm oil hybird species
All these are known to Insiders/Directors and totally not reported by Media or Research houses
That is why Directors/Insiders have been buying and holding tightly every precious Tsh shares
Why go for Mkh oil palm Ipo? When you can get the bargain Tsh now at 🔥 fire sale price below Rm1.00??
8 hours ago
xiaoeh
Good sharing Calvin for TSH
8 hours ago
calvintaneng
Tsh 50/50 joint venture in Sabah with Wilmar is a Palm oil Refinery Making cooking oil and other downstream products for direct export to China and India 2.8 billion ready consumers
Also Tsh has a total of 6 palm oil mills (according to Fgv BOD a palm oil mill today is worth as much as Rm60 million. If 6 then 6 x Rm60 mil = Rm360 mil)
Out of the Rm731.09 mil land sold more than half set aside for replanting, new planting and also possible new biogas mil
All these extra cash set aside will increase the profit in future
So Tsh is on to a new phase of growth while retaining its deep land value assets in ikn nusantara for amplified jump 🦘 in real estate value
Since by this year Tsh going to be debt free and cash rich it will morph into a dividend play like Inno in Malaysia and Bumitama agri/Goldenagri of Spore
As such BOD of Tsh is so confident it has done a dual listing of Tsh shares in Singapore
Distribution of 82,487,981 ordinary shares in MKH Oil Palm (East Kalimantan) Berhad ("MKHOP") ("MKHOP Shares"), representing approximately 10.3% of MKH Berhad's (the "Company" or "MKH") equity interest in MKHOP to the entitled shareholders of the Company by way of dividend-in-specie, on the basis of 1 MKHOP Share for every 7 MKH shares held by the entitled shareholders, on the entitlement date
Entitlement Type: Dividend In Specie Entitlement Date and Time: 15/02/2024 05:00 PM Year Ending/Period Ending/Ended Date: 30/09/2024 EX Date: 14/02/2024
have they determined the MKHOP's IPO price already ? let say if IPO priced at = RM1.21 MKH traded at = RM1.47 theoretical ex-price for MKH is around 1.29
Top Pick. Our favorite within the sector is MKH as we maintain a favorable perspective because of their emphasis on providing affordable homes priced below RM500k and their distinctive transit-oriented developments are expected to continue drawing interest from potential buyers. Additionally, the group's nearly net-cash position offers robust flexibility regarding its financing options, especially in the event of potential expansion in their primary business segments.
When Bursa property development MKH ventured into the plantation sector in 2008, little did it know that it was to provide a lifeline to the company a decade latter.
Prior to 2016, MKH property development segment was the key revenue and earnings contributor. But since then, the Malaysian property market began to soften and the contribution from the property development segment began to decline.
At its 2016 peak, the property development and construction segment contributed nearly RM 250 million EBIT but this declined to RM 70 million in 2021.
On the other hand while the plantation segment performance was cyclical, its 2021 EBIT of RM 110 million was better than the 2016 RM 90 million EBIT. You can see from the chart that without the plantation business, MKH performance would have been worse.
When Bursa property development MKH ventured into the plantation sector in 2008, little did it know that it was to provide a lifeline to the company a decade latter.
Prior to 2016, MKH property development segment was the key revenue and earnings contributor. But since then, the Malaysian property market began to soften and the contribution from the property development segment began to decline.
At its 2016 peak, the property development and construction segment contributed nearly RM 250 million EBIT but this declined to RM 70 million in 2021.
On the other hand while the plantation segment performance was cyclical, its 2021 EBIT of RM 110 million was better than the 2016 RM 90 million EBIT. You can see from the chart that without the plantation business, MKH performance would have been worse.
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....
monetary
4,442 posts
Posted by monetary > 2023-08-31 12:28 | Report Abuse
they will take the vwap price.