Anglo-eastern Plantations Share Discussion Threads

[tigerbythetail] 09/5/2024 12:26

Well, I figure the board can call this mission accomplished - the share price has been successfully suppressed. The cancellation of the share buyback (and the absurd reason given for it) speaks volumes.
Of course the board have an unspoken reason for behaving in this way. And, as far as I can see, that reason must be that they are engineering a low-price insider buyout of the minority shareholders, which could be financed entirely by the company's own cash pile.
I assume that we have to wait for the final settlement of Madame Lin's will to find out more. I don't know how long that will take.

[34adsaddsa] 02/5/2024 19:00

Sorry, I meant $153M cash and cash equivalents as listed in the annual results.

Redtrend used $153M net cash and I repeated it without thinking.

Might as well add the $10M in Lux to get $238M net current assets even if they aren't readily accessible.

I agree that it's very annoying.

[skanjete2] 02/5/2024 07:36

How do you come to $153m net cash?
I've got : 153 + 14 (short term) + 10 (Lux funds) = $177m net cash, or about 3,5£/share.

Especially the $10 Luxembourg investment frustrates me : why not return the clearly excess $10m cash to the owners and let them decids where to invest their cash???

[34adsaddsa] 30/4/2024 19:00

But it isn't just the net cash of $153M. Net current assets are $228M.

Net current assets are 65% of the market cap and there's no debt. It's ludicrous and everyone can see it's ludicrous.

Shell "targets the distribution of 30-40% of cash flow from operations through the cycle to shareholders".

Really all you have to do is look at MPE. Their dividend is 2.65x AEP's and their net current assets minus debt is about zero. AND they're buying back shares.

[redtrend] 30/4/2024 18:38

Putting in place a dividend policy and being in line with more generous side of commodity/ mining companies dividend policies would suggest otherwise: 25% of annual retained profit.


"In determining the level of dividends to be paid to our shareholders, the Board has taken a balanced approach to the requirement of funds in the Company for expansion in planted area as well acquisitions of land or plantations, but at the same time cognisant of shareholders' wishes to have dividends as a form of income. In light of the results achieved in the year, the Board has declared a final dividend of 15.0 cts per share, in line with our reporting currency, in respect of the year up to 31 December 2023. With an interim dividend of 15cts per share already paid, the total dividend declared for the year ended 31 December 2023 will be 30.0 cts (2022: 25.0 cts), equivalent to approximately 25% of the retained profits attributable to the Group for the year ended 31 December 2023. Going forward the Company has adopted a policy of declaring at least 25% of the retained profits attributed to the Group annually."


You also have to bear in mind the $60M purchase of the Indonesian non-controlling interests only occurred in Nov-2023 so significant % of revenues and profits are attributable to this. Of the $65m Net Profit in 2023, $9.5m is attributable to non-controlling interests. Going forward this will no longer be the case, so in terms of dividends and like for like comparison, we will have 25% dividend policy of a larger share of net profit.

The non-controlling interests are now pretty much nil. If you jump to Note 28 of Report and breakdown of entities, Malaysia entity still has 45% non-control interest and 1 of the Indonesian entities " PT Bangka Malindo Lestari" has 5% non-control interest.

I do of course agree having a Net Cash pile of $153m is far too high / conservative and is idle that should be paid to shareholders. But at least we've gone from nil dividend, to a 3-4% dividend and an actual dividend policy, that now with non-controlling interests bought out, should generate higher div yield on like-for-like basis.

Would also hope in time the 7th mill (HPP, North Sumatera) completed Q4 2023 at $22.5M will also add revenues and profits. There's then 8th mill they plan to build in Kalimantan with EIA awaiting approval.

[34adsaddsa] 30/4/2024 17:34

The estate of Madam Kim isn't finalised. The application for probate is in progress. There are media reports that there are - or at least were - disputes over the will.

That might be part of the problem here.

[chillpill] 30/4/2024 09:26

Cancelling share buyback suggests they might take private.

It’s always been illiquid so why are they suddenly surprised with the low share buyback volumes?

[skanjete2] 30/4/2024 09:00

That's also what I was thinking.

They want to buy it out and certainly don't want to pay more than the valuation of other western plantations.

If they buy back shares up to the point that the shares are similarly valued as other western plantation groups, they won't be able to pay a premium so taking it private would be difficult.

A take out at similar valuation as the others is fine by me, by the way.

[34adsaddsa] 30/4/2024 08:13

The question is: Why?

What's the motivation? Is it empire building? Are they accountants who are terrified of going bankrupt? Is it a plot to eventually take it private on the cheap?

They're not stupid. They'll know what they're doing isn't normal and that the shares are ludicrously undervalued.

[e43] 30/4/2024 08:08

Concur Tiger,nothing much in release to encourage buying the shares,

[skanjete2] 30/4/2024 08:05

TBTT, I completely agree on all points!

[tigerbythetail] 30/4/2024 08:01

Results out.
They're in line with my expectations and reflect a solid profitable business with a large cash pile. Many of the board's inwards-facing actions are sensible and measured.
So far, so good.
But, unfortunately, I don't think the board "get" being a PLC at all. The dividend is measly under the circumstances, and instead of expanding the share buyback, they are going to halt it, complaining that it has not netted enough shares. (Hint: try putting your "buy" price up - nobody is going to sell whilst the shares are so obviously undervalued compared to AEP's peers!). A secondary listing in a better stock market would be most welcome (Singapore?).
Additionally, I have to complain about the stress test the board set for the business - the scenario they envisage is basically Armageddon, and you can't stress test for the end of the world - far too many variables!

[beresford99] 28/4/2024 16:49

MKH Palm Oil(issue price 62 sen)is set to debut on Bursa Malaysia on 30th April … it was oversubscribed 8.4 times, it will be interesting to see how the market receives it. MKH has around 18,000 ha in East Kalimantan, I believe the pe is 20 and projected yield 4-5%. I have no doubt it will show just how absurdly cheap AEP is. I was pleased to buy a few more shares at 708p before the recent uptick.
Let’s hope the dividend is increased but what would really help the price would be for the management to seek a listing in Singapore.

[34adsaddsa] 28/4/2024 02:31

Indonesia raised rates to 6.25% to defend the Rupiah which, along with other asian currencies, has been weakening significantly against the dollar.

[tigerbythetail] 25/4/2024 09:37

This is so deeply undervalued it's hard to get exuberant here! EV is tiny compared to its direct peers. It "should" be trading at roughly double the current share price.
Hoping for a dividend uplift, a further share buyback, and maybe a plan to list on another stock exchange where it will be valued more appropriately.

[skanjete2] 24/4/2024 11:23

Sentiment is not exactly "exuberant" over here ;-)

[sspurt] 24/4/2024 11:04

not a chartist but aren't we meant to get excited when the 50 day crosses the 200 day and is bottoming and turning up - all on better volumes?

[skanjete2] 23/4/2024 07:00

Results normally coming out this week, I'm curious about the dividend...

[sspurt] 08/4/2024 14:50

...with a bit of volume as well. 🤞🤞🤞

[34adsaddsa] 08/4/2024 14:06

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

[34adsaddsa] 04/4/2024 13:42

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 10:43

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 16:39

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

[tigerbythetail] 03/4/2024 09:01

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.