冷眼 (Fong Siling): TDM

冷眼 (Fong Siling): TDM

 

Planting is the most time-tested enterprise, because the most important asset - land owned by the plantation companies, the value of l drop, preservation assets.Although the original product price volatility fierce, palm oil, with its low production costs and a variety of uses, with the strongest competitiveness. Four decades, the share of palm oil in the cooking oil market, from 5% to over 40%, to prove their superiority.

Buy planting stocks, it is the most prudent investment. Unfortunately, most individual investors do not familiar with the oil palm industry, does not assess the ability of planting stocks missed the opportunity of the low buy planting stock.Let's us ponder TDM!!!

History: development history of over 45 years.
Plantation Location: Terengganu.
The major shareholders: The company is the investment arm of the Terengganu state government, state government and state development agencies have 53% and 14.9% stake in this company.
Plantation area:
(A) The company has oil palm plantation: 26,162 hectares (60,000 4649 acres).
(B) the company on behalf of the management of oil palm plantation: 32,897 hectares (80,000 1292 acres).
(C) Other land: 6734 hectares (16,640 acres).

Business:
⑴ oil palm garden.
(2) medical services: three small hospitals.


Reasons for choosing TDM: 

• its Terengganu has 82,248 acres of oil palm plantations (33,284 hectares), all mature, and rich period in the current prices of crude palm oil (CPO) tall and graceful, the greatest beneficiary.
• The company will in the next three years, in East Kalimantan, Indonesia, planting 50,000 acres of oil palm has been planted at the beginning of this year of 5000 acres.The company plans eight years, the planted area expanded to 100,000 hectares (250,000 acres), planting stocks, growth stocks.\
• The company with capital of 200 million to 31.46 million ringgit, with 100 million 65.01 million ringgit in cash and no debt.
• The company requires at least 30% of the net profit as dividends distributed to shareholders, last year net profit of 41.49 cents per share, distribute a net dividend of 13.50 cents.

Current Outlook:
- Current EPS dropped significantly due to low production of the palm oil, but this is picking up in JULY. Therefore, there is no doubt the EPS of the remaining 2 Q will be good!
- At current level, maybe it is still high RM 3.80, should we wait for the falling knife to stabilize before we go in?