Anglo-eastern Plantations Share Discussion Threads

[melody9999] 16/6/2023 07:50

Palm oil up by 6% this am.

[tigerbythetail] 16/6/2023 07:45

RNS out - AGM statement...

[tigerbythetail] 13/6/2023 18:04

Either El Nino (if it arrives) is going to be so dramatic that it's going to turn the tropics into arid deserts, or this share is one heck of a bargain!

[ilad60] 26/5/2023 11:07

Trading statement Q1

Crude palm oil ("CPO") production was lower by 14% at 92,600mt compared to 107,300mt for the same period last year.

The ex-mill price, as a result, was lower by 27% at $763/mt compared to $1,041/mt for the same period last year.

The Group has net cash of $284.6 million as at 31 March 2023

[ilad60] 04/5/2023 12:42

An unbelievable value stock to buy before it’s too late!

[34adsaddsa] 26/4/2023 11:04

Dividend is still low and how many people are even looking? No analysts cover it.

[maty] 26/4/2023 10:41

This should be flying .. weird

[34adsaddsa] 25/4/2023 13:47

I think this is a one-way ratchet. The dividend may or may not go up but it's unlikely to go down again. Pressure from shareholders is likely to increase as the cash pile continues to grow, particularly if measures they take do actually boost the share price. People will see it's working and want them to keep doing it. I think it will be self-reinforcing.

As you say, patience required..

[skanjete2] 25/4/2023 11:23

Well, in any case, this is a serious dividend on my original purchase price from 2019 : +4%. I'm not complaining.

And it's comforting to know there is (a lot of) room for progress...

[stemis] 24/4/2023 22:30

To put it into context, the cost of the dividend is $10m when they made a profit of $84m and have cash/investments of $277m. Some way to go before they can really be considered serious...

[e43] 24/4/2023 21:55

Tiger,I agree it's a step in the right direction,but only a start,a situation like AEP cries out for a sensible sharebuyback or tender offer to complement a rising dividend, although I doubt they will overly aggressive buying back in the short term ,it's a mathematical no brainer at the current price.This share will hopefully reward the patient investor v well from here.

[skanjete2] 24/4/2023 12:13

Thank you for the reply, ILAD.

So if we assume that most of the investment went to CPA and not the other, to be sold estates, they bought about 450ha (10%) for about 5.8mUS$+1.5mUS$.

That amounts to about 15.000US$/ha. In the current environment, that is an attractive investment. If one would apply this valuation to the whole of AEP....

[tigerbythetail] 24/4/2023 11:42

The BOD have now quintupled the dividend for two years in a row. But even now this share only yields around 2.5%. (I suppose this goes to show how ludicrously derisory the dividend of this cash-rich company used to be!)
Is a 2.5% yield enough to qualify AEP as a worthwhile dividend share? No, not really.
And I don't see AEP as a growth share. And a palm-oil producer will never become "fashionable", no matter how good its numbers are.
IMO, we're headed in the right direction now. But only slowly. If the board quintuple the dividend again next year (which they can easily afford to do), then that will cause the share price to rerate to c.1600p and the yield to normalise at a healthy 6% or so.
Looking at MPE, that makes sense to me as an approximate valuation.

[ilad60] 23/4/2023 23:03

In June 2007 the company acquired another neglected oil palm estate of 4,470 ha, Cahaya Pelita Andhika, of which about 1,020 ha were planted and mature. The estate is located on the west coast of North Sumatra, about 180km from the nearest existing group estate, Tasik. The planted areas were rehabilitated and the unplanted areas were planted over five years after acquisition.

[skanjete2] 22/4/2023 11:43

They bought 10% of CPA in Sumatra.
Does anyone know how much ha CPA contains?

Strangely, I also noticed they bought an extra 5% in the discontinued plantations in southern Sumatra they want to sell.

[34adsaddsa] 21/4/2023 13:55

Sounds like it was part of the deal to acquire the minority interests.

[sspurt] 21/4/2023 12:47

2fp - I borrow money from you and later you say I don't need to pay it back.

Nice if you can get it..

PS can you lend me £1m?

[2flatpack] 21/4/2023 11:35

Morning All,
Can anyone tell me what 'together with a forgiveness of loans of $1.5 million to two minority shareholders' means?
Cheers

[ilad60] 21/4/2023 10:00

During the year, AEP bought back shares in six of its subsidiaries in Indonesia for a consideration of $5.8 million, which will enhance shareholders' value in 2023 and onwards, together with a forgiveness of loans of $1.5 million to two minority shareholders. AEP will continue to buy back shares from its minority shareholders at a fair and competitive price as part of its consolidation of its shareholdings in the subsidiaries in Indonesia. The financial effect of a buy back going forward is to enhance earnings per share.

the good news show

[easybrent] 21/4/2023 09:17

Dividend from 5c to 25c

And

Buyback program announced.

Revaluation here we come.

[tigerbythetail] 21/4/2023 09:17

Annual results out - they look good at first glance...

[ilad60] 21/4/2023 09:16

The Board has declared a final dividend of 25.0cts per share, in line with our reporting currency, in respect of the year to 31 December 2022 (2021: 5.0cts)

[nobull] 22/3/2023 10:12

Yes, it sounds significant (am not a shareholder). No idea how Chinese surnames work on marriage. Mdm Lim evidently had 4 children; that is, if there was only ever one Lim Siew Kim, and if I haven't got the wrong one. Interestingly, the children's names all start with "Chan": Mdm Lim's husband was Chan Teik Huat, I think. I'll be losing my bet with skanjete then if they start to do something really good for AEP with that idle cash pile!

[skanjete2] 21/3/2023 11:17

I think this is significant.

He didn't have any AEP shares before, and only took $87k home in 2021 (cfr annual report 2021).

The results are out from MP Evans. Their recent independent valuations took 20.800$/ha as reference for the value of their hectares palmoil.

I dare the reader to apply this valuation on Anglo Eastern and see what value/share you get (don't forget the cash).