Anglo-eastern Plantations Share Discussion Threads

[sspurt] 08/4/2024 15:50

...with a bit of volume as well. 🤞🤞🤞

[34adsaddsa] 08/4/2024 15:06

Breaking out? Should be back at 850p to match MPE.

[34adsaddsa] 04/4/2024 14:42

Financial Calendar updated.

End of April 2024 for the Annual Results Announcement.

Ex-dividend date of 14 June 2024.

Somewhat ominously, it also says:

"Past and present policy is to pay only one dividend per year as a final dividend but an Interim dividend has been declared."

[foxfox79] 04/4/2024 11:43

Last report aug 2023, 9500 h remained to be planted, lets say 100M to do this, all the rest can easily be distributed as dividend. But most likely it will be sold in the coming years for at least 16 GBP/share

[34adsaddsa] 03/4/2024 17:39

I wouldn't bet on it without a dividend increase. At least they're probably being harassed by shareholders.

[tigerbythetail] 03/4/2024 10:01

What is frustrating is that they could easily quintuple the dividend, given the size of the cash pile.
"Too much cash" is a nice problem for a company to have. But, finally, it is still a problem.
I'm assuming that the results due out this month will jolt the market out of its stupor here.

[34adsaddsa] 30/3/2024 05:35

MPE breaking out, now worth 57% more than AEP.

It they'd just 3x the dividend we would more than double.

[ntv] 19/3/2024 09:19

Interesting to note that the following from MPE results today
As reported above, CPO prices were relatively stable during 2023, with the Group achieving an average mill-gate price of US$729 per tonne. This price stability has continued into the early part of 2024, with some price strengthening as the period continued. In early March, the Group has achieved some tender prices of a little over US$800 per tonne.

[34adsaddsa] 14/3/2024 14:34

This company doesn't trade on fundamentals because they don't distribute the cash to shareholders. They need to 3x the dividend.

I doubt there's much interest from UK investors for palm oil companies and non-UK investors aren't interested in UK stocks.

[ntv] 14/3/2024 08:39

Price of CPO has been climbing steeply recently
Not had any effect here or MPE which seems rather strange

[foxfox79] 09/3/2024 09:47

Yes, but is profitability of this company great i wonder? First 6 mobths they earned 21 M net profit, 2 half will be somewhat better maybe 25M. Considering the historically high cpo prices profitabilty doesnt seem that high.. what am i missing why would this company then be worth 3 x current marjet cap?

[skanjete2] 07/3/2024 16:24

CPO is above 1000US$/ton again, at the highest price since july last year.

And all cash flow accrues to AEP shareholders now...

[34adsaddsa] 05/3/2024 15:33

Not that it matters to the share price, but in case anyone is interested:

"(Bloomberg) -- Stagnating production and dwindling stockpiles will underpin palm oil prices relative to other edible oils in the near term, according to veteran trader Dorab Mistry.

Production in top grower Indonesia may fall by at least a million tons in 2024, while Malaysian output could remain flat, said Mistry, a director at Godrej International Ltd. The trend is likely to last at least five years, as the industry contends with aging trees, erratic weather and little improvement in farming practices, he said in an interview.

“I think you have to be reasonably bullish on all oils, but particularly palm,” due to output constraints, he said on the sidelines of the Palm & Lauric Oils Price Outlook Conference in Kuala Lumpur. While production of other oilseeds is set to climb this year, “palm is unfortunately the laggard,” he said.

Read More: Palm Oil Reserves in Malaysia Fell Almost 5% in February: Survey

These supply problems are upsetting the hefty discount palm typically has to alternative oils. The tropical oil is trading at a premium to soybean oil and sunflower oil in some markets, an unusual phenomenon that’s set to continue until around October when palm production seasonally peaks, said Mistry, who has traded vegetable oils for decades.

Benchmark palm oil futures have risen about 6% this year and traded at 3,942 ringgit ($834) a ton on Tuesday in Kuala Lumpur.

Unpredictable weather is also a major wildcard for crop markets. Benign conditions have generally favored recent harvests and helped send a gauge of grain and oilseed prices to the lowest level in more than three years. But that may not last.

“We dodged bullets in several parts of the world” last year, Mistry said. “We have got to be on our guard.”

[skanjete2] 12/2/2024 10:33

The current CPO prices around 950US$ are in my opinion optimal in the long term :
- very profitable
- don't attract windfall taxes or exagerated export taxes
- don't attract too much plantation expansion (already curbed in any case)
- don't force the vegetable oil market to consider alternatives

[skanjete2] 07/2/2024 07:50

I'm counting on a dividend of 50cents this year.

[34adsaddsa] 06/2/2024 20:19

Their cash is overwhelming in Rupiah.

I'm assuming the dividend will be flat (40 cents) until told otherwise.

I'm sure shareholders are still pressing them to increase distributions.

[beresford99] 06/2/2024 18:09

Good point,if their cash is all in US$, they should be worried. About 8T of US debt will have to be refinanced this year, as the US is effectively bankrupt,the $ could easily fall 10-15% if they have trouble rolling over.
Any idea what the dividend could be this year ?, I hope the interim is now a permanent feature, I always reinvest the dividends.

[34adsaddsa] 06/2/2024 13:51

When the market has confidence that they won't just sit on hundreds of millions of dollars in cash. They've made a good dent with the buyout of minority interests and increasing the dividend but it's not enough.

[tigerbythetail] 02/2/2024 17:35

RNS out - biogas plant completion.
When will the market notice this company and value it properly?

[34adsaddsa] 27/1/2024 14:00

If it were a company with a diversified shareholder base then I would agree with a tender offer, but it isn't.

A delisting would be a catastrophe and I'm not interested in any route which makes that a possibility.

Do you think the market value would be under £200M after the special dividend of $100M? With a doubled ordinary dividend the yield would be getting on for 13%. The shares simply wouldn't be at that valuation.

[skanjete2] 27/1/2024 12:38

Dividends are terribly tax inefficient and don't solve the valuation problem... bad idea

[34adsaddsa] 27/1/2024 09:22

No. Almost everyone would try to participate in the tender so people wouldn't get that much of their shares accepted and ownership would be further concentrated in the hands of the heirs of Madam Kim.

People pushing for buybacks/tenders are making a mistake. A big special dividend and a doubled ordinary dividend hugely reduces the excess cash problem, leaves us less at the mercy of the share price valuation and doesn't cause delisting risk.

[skanjete2] 27/1/2024 08:25

Or better yet : they should organise a tender offer for $100m at say 14£/share.

This would be a win-win for every one.

In one swoop they would :
- have a reasonable valuation in line with the other plantations
- a liquidity event for shareholders willing to sell
- at an attractive valuation for shareholders willing to stay
- a more efficient balance sheet

[34adsaddsa] 27/1/2024 04:04

In the last six months, they've spent $85M on buying out minority interests. That's a lot of cash. They should pay a $100M special dividend and double the current dividend to 80 cents. That would instantly fix the share price problem.

[beresford99] 24/1/2024 21:14

I’m not really surprised at Anglo’s lacklustre performance, most of the Indo planters have performed poorly compared to their Malaysian counterparts.The CPO price has started 2024 quite positively and I’m sure the Indo planters will play catch up over the next few months. I know the Indonesian Govt interference is detrimental but on the other hand labour costs are less than in Malaysia, which is positive.
It’s extraordinary how just a few thousand share traded can move the price by 1-2%, this share along with MPE should seek a listing in Singapore(London is not the place)
Think what would happen if daily turnover was 70-80,000+ a day. The huge cash pile should be put to work, why not diversify geographically and buy some land in Malaysia.
Many Malaysian plantations have holdings in Indonesia, it can work both ways and also spread the risk.