BPlant is one of the cheapest plantation stock in Bursa. It has over 65,000 ha of planted palm oil estates, now valued at just RM35k/ha or 35 sen psf.
It also has 9,700 ha of estate land nearby town which could be monetised at much higher price than normal plantation land. These land plots are valued at just RM893m or RM91.7k per ha or RM0.85 psf in book value. Recall that Bplant sold off its 664ha of land in Kulai for RM429 million or RM646,084 per ha or RM6.46 psf. Assuming that Bplant can monetise these land parcels at half the valuation or RM300k per ha, this 9700ha land will be worth RM2.91 billion or RM1.30 per Bplant share. This would add RM0.90 to its book value.
Now Bplant current book value is already RM1.31 per share and would increase to RM2.21 if the 9700ha land is monetised or revalued to market value.
With edible oil supply becoming very tight and suitable plantation land limited, palm oil estate land will become very much more valuable in future. Plantation land will be worth easily RM70,000 per ha as people scramble for land.
If Bplant 65k ha planted land is revalued to RM70k per ha, then it will be worth 65k x RM70k = RM4.55 billion or RM2.03 per share.
Plus the market value surplus of its 9700ha land near township, Bplant should be worth RM2.03 + RM0.90 = RM2.93 minimum
One more advantage BPlant has over other planters is that all of Bplant's plantation land is located in Malaysia, none in Indonesia. This makes a big difference as the realised CPO sale price from Malaysia is close to market price RM6000+ per tonne while palm oil export from Indonesia will be subject to maximum USD575 (or RM2,300) per tonne of export duty & levy
Bplant also seldom sells forward so it benefits maximum from current high spot prices of CPO.
Furthermore, Bplant is generous with dividend payouts. It paid out total 8.4 sen of dividends in 2021. With CPO prices hovering above RM6,000 per tonne, Bplant is expected to record higher profits and declare dividends over 10 sen in 2022.
Whichever stock give me dividend , I stay there hahahaha. Lazy see daily up or down. Sometimes up, my hand won’t let me click sell. Sometimes down it hurts me and hurts more if no dividend
China Faces Worst Crop Conditions Ever Due to Climate Change
Bloomberg News08:30 AM IST, 23 Mar 2022 (Bloomberg) -- More extreme weather caused by rising global temperatures — compounded by geopolitical turmoil and the pandemic — is hindering China’s effort to ensure food supplies for its 1.4 billion population.
President Xi Jinping has made food security a priority for the world’s second-biggest economy, an effort to meet the soaring demand that’s pushed imports of corn, soybeans and wheat to record levels, making Beijing increasingly vulnerable to trade tensions and supply shocks. At the same time, climate change-induced disasters have caused widespread crop damage and shrunk the amount of arable land, making it harder to boost local production.
Tang Renjian, the country’s agriculture minister, brought up the threat at a high-profile government meeting in Beijing this month. “China faces big difficulties in food production because of the unusual floods last autumn,” he told reporters. “Many faming experts and technicians told us that crop conditions this year could be the worst in history.”
More than 860 people died or went missing in natural disasters last year, which damaged almost 30 million acres of crops. Record-breaking rains in the central province of Henan in July alone damaged 2.1 million acres of farmland. The floods delayed planting on more than 18 million acres of land, about one-third of China’s total winter wheat acreage. The amount of first- and second-grade crops, where there are more than 2.7 million seedlings on every acre of land, fell by more than 20% this year compared with normal years.
Climate change hurts China’s pursuit of food security in two ways, according to Zhang Zhaoxin, a researcher with the agricultural ministry. More frequent extreme weather events are already lowering crop yields. Meanwhile, increasingly unpredictable seasons can undermine farmers’ confidence and potentially worsen the sector’s existing labor shortage.
Farmers in northern China are used to droughts, not floods, Zhang said. In many of the regions that were affected by torrential rain last year, farmers couldn’t harvest their corn because their machinery couldn’t handle the water. There wasn’t enough infrastructure such as pipes and systems to drain the field in time.
Those issues are set to get more serious as the planet warms. Seasonal droughts will reduce yields of China’s three major staple foods — rice, wheat and corn — by 8% by the end of the decade, according to World Resources Institute. In the longer term, climate change also means rising coastal waters along the long and low eastern coal could further stress the agricultural industry.
“As climate change continues to intensify in coming years, weather events are going to have a greater and greater impact on agricultural productivity,” said Even Pay, an agricultural analyst with Trivium. Ramping up imports isn’t a viable alternative, she added, pointing out that global warming makes food cultivation more challenging globally. “Climate change felt in the rest of the world could also impact China’s food security,” she said.
FCPO price go up but plantation stock price barely move, you should know what to do. big boys are taking advantage of dumb retailers buying to cash out. don't say i didn't warn, this is the last chance to get out. promoters have their own motive, nobody will help you make money unless they are making money out of you!!! kikiki
dont fall in love with a stock, keep finding news to support your bias view. palm oil rally is over, the best time to buy is over, fcpo is dropping now after dead cat rebound, run before too late!
lel con groups everyone in group makes money because they con retailers. unless conman slow in action or fall in love with the counter. dont want sell / high target price
rally over, its time for swing trade UP down UP down time man!! now got chart to help see which good price to enter/exit impossible to keep going down down down haha
hoot9e996 true. sampai sekarang xkan x nampak lagi pattern dekat BPLANT JAYA TIASA THPLANT. up down up down sampai kesudah. kaya la org yg capital besar. untung macam tu je
What logic is this? Do u think Ukrainians drink oil like water? They are net exporter. Even if there are planting sun flower, no importer is willing to pay high insurance to get the goods out of Ukraine. Even if they are willing to pay, the goods might got delayed or stuck due to war.
So conclusion, sunflower oil supply from Ukraine is disrupted. And pls exercise restraint n not making fun of those unfortunate that suffer due to the war.
haha....look at FCPO price....big red candle! already warn many times to run, all thought I am spreading fear. Panic selling tomorrow kikikiki All the sifus and promoters on this forum will disappear cause they already done unload hehe
Wow, gameover, is tht how u justify ur view? Whn FCPO goes up, u come here and say it will go down, thn FCPO goes down, u will come here and say “I told u so”… ok, up or down, u win all….
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....
brianklc
1,624 posts
Posted by brianklc > 2022-03-23 16:11 | Report Abuse
Am surprised each time price goes up, sure got these kind of ppl come to talk without substance.