Anglo-eastern Plantations Share Discussion Threads

[andysburns] 18/3/2010 08:16

nice post woracle - would like to add the inevitable rise in the palm oil price as upward presure on the valuation too.

Like the bit about PALM. I'm sure it would be appreciated on their thread!

[woracle] 18/3/2010 08:06

Interesting NBPO and now MPE this morning are making acquisitions on mature plantations at a price of $8700 and $7000/ha respectively. MPE's purchase is in Bengkulu too, same area as one of AEPs. These are probably fair prices for established profitable plantations with decent yields.

Lets compare this strategy with 2 others:

PALM - overvalued mugs game valued at 7000/ha for undeveloped land only. Will need lots more dilution and financing and might make a small profit 5 years from now.

AEP - smart land acquisitions 2 years ago amounting to about 80K ha at an average cost of around $250/ha. Development costs should average around $2500/ha for these over next 5 to 7 years funded by cash flow and low bank borrowings. Pretty smart management. 40K planted, 80K plantable. Lets value the 40K planted at $7000/ha, this is a valuation of $280M which coincidently is what it is now. So the 80K unplanted land is for free. By these simple metrics alone, valuation will triple once the 80K is planted and producing in around 5 to 7 years. Of course I suspect average selling prices will be a lot higher than $7000/ha too in the future.

[lobby ludd] 17/3/2010 13:52

The price of CPKO (not often mentioned) has increased by over 10% this week....from less than $3000 to nearly $3400 a tonne.

[hvs] 16/3/2010 15:36

Makes good reading :

John Beaumont, analyst at Matrix Group, said: "Palm oil proves very efficient compared to other oil crops. In a world where we are still trying to feed umpteen people, it makes much more sense to tap into an efficient source.


"The other straightforward attraction for businesses is that growing demand will call for increasing prices. There are only a set number of growers globally which makes this business very profitable."


GreenPeace now estimates that demand for palm oil will double by 2020 and triple by 2050.

[notanewmember2] 15/3/2010 22:15

Nice rise. Happy :)

[spaceparallax] 15/3/2010 15:43

nice continuation of the upward trend

[hvs] 15/3/2010 12:28

We should be getting an RNS soon.

[andysburns] 15/3/2010 10:44

nice rise again this morning

anyone know when the results are due to be announced? 16th April last year so should be soon.

[andysburns] 14/3/2010 16:58

the more the merrier - welcome 2d and good luck if you choose to invest, I hope it works our for you!! ;-)

[2down] 14/3/2010 15:10

hvs it is new money usually from new investors which will drive the price up
only then you can lol!!!

[woracle] 14/3/2010 13:42

2down, best to read the last annual report and the postings here. Too much to tell really.

[hvs] 14/3/2010 13:35

lol !!!!

They do spring up dont they ?

[2down] 14/3/2010 09:18

nice chart woracle

can you tell me bit more about the company and management, if you don't mind

2d

[woracle] 13/3/2010 08:09

I'm not a chartest, but obviously some short term trader types have appeared here lately, so for their benefit..

[nwalsham15] 12/3/2010 18:36

anyone know when results day is please?

[andysburns] 12/3/2010 17:46

re new floats. Really stuggling to see any compelling information that justifies the price of PALM right now - I might be wrong (not unusual!!) but all I can see is their corporate presentation with lofty expectations of fair value.

AEP looks like far more secure exposure to the Palm Oil Story.

[woracle] 12/3/2010 16:24

Clearly the AT BOT still has a lot more to buy. At each level, it soaks up all sellers and when no more liquidity, offers a another 20p more etc. 600p soon after results day if u ask me which would bring it on a PE of around only 10.5 compared to its peers NBPO and MPE 18+, RE 12. Considering AEP has the strongest balance sheet , most experienced management and largest overall acreage, this discount will be closed. If only the majority shareholders would release a few shares into the market to increase liquidity...
All the new floats are waste of time and over-valued city boy vehicles jumping on the band wagon..

[hvs] 12/3/2010 11:34

Looks like we will be breaking £ 5.00 before results and the FLY.

Read this to understand how undervalued we are here.

30 November 2009


ASIAN PLANTATIONS LIMITED


FIRST DAY DEALINGS


The Board of Asian Plantations Limited (the "Company"), a Singapore incorporated
company established to act as a holding company with subsidiaries (together the
"Group") involved in the acquisition, development, operation and management of
palm oil plantations in Malaysia, is pleased to announce its admission to the
AIM market of the London Stock Exchange ("Admission") and the first day of
dealings in its ordinary shares under ticker symbol PALM.


The Company has raised GBP5.26 million through a Company sponsored placing of
7,010,000 new ordinary shares representing 23.7% of the enlarged share capital
of the Company. The approximate market capitalisation of the Company at the
subscription price is GBP22.18 million.

Strand Hanson Limited is acting as nominated adviser in relation to the
Admission with Mirabaud Securities LLP as broker.

[hvs] 09/3/2010 09:56

CPO is up again to USD 860 per ton.

[hvs] 08/3/2010 10:34

I just posted the above for anyone interested. I did read the article on plam to soya in Indonesia but unfortunately cannot find it now.

[woracle] 08/3/2010 00:44

So thats primarily a soya producer moving to Palm..opposite to what u were saying before. Anyway Ruchi is a more diversified group and will be on a historical PE of around 11 for year just ending this month

[hvs] 07/3/2010 10:50

Just look at the valuation and performance.

[hvs] 07/3/2010 10:46

Ruchi Soya targets four-fold rise in palm plantation

Press Trust of India / New Delhi February 23, 2010, 18:25 IST



Ruchi Soya Industries today said it would increase palm plantation acreage four-fold to two lakh hectres in India in next three years so as to bridge the country's demand-supply gap for palm oil.

"India is importing around forty lakh tonnes of palm oil each year. We want to plug the gap by increasing our palm plantation by four times to two lakh hectres in next three years," Ruchi Soya Industries Director V K Jain said here.

The company, the largest branded marketer of palm oil in India, is looking for land in Andhra Pradesh, Karnataka, Orissa and Assam for contract farming. The existing plantation on 50,000 hectres is also done in these states.

Ruchi Soya Industries, he said, will import saplings from African countries and give them to the farmers with a buy-back guarantee of their produce.

Besides undertaking plantation in India, Ruchi Soya recently signed an agreement with the Ethiopian government to grow palm on 50,000 hectres of land in that country. It also plans to begin the same on a substantial area in Indonesia.

Ruchi Soya Industries has chalked out an outlay of around Rs 100 crore to increase refinery capacity at both Kandala and Haldia by two lakh tonnes a year.

"Our current palm oil refinery capacity is 20 lakh tonnes a year and we plan to increase that by an additional two lakh tonnes per annum. This will be through browfield expansion at our Kandala and Haldia refineries," Jain said.


A lakh is 100,000 and 100 carore is about £ 12 mill

[woracle] 06/3/2010 18:59

Umm.. I''d like to see those articles as it doesn't make economic or environmental sense. Certainly no mention of it on the web.



There is a small 270ha of rubber coming online next year and AEP already plan to establish a sizeable rubber plantation in Bangkla or Kalimatan areas acquired in late 2007. Check out the 2007 AR. So they are very much on the ball ;)