Dear Friends, Please read to the end as we type now
This is to compare & contrast FGV & WILMAR
FGV now is Rm1.37 & WILMAR IS S$5.50 (Rm17.05)
FGV current price is only 8% of Wilmar
Let us look at Wilmar Plantation Assets
Wilmar is one of the world’s largest oil palm plantation owners with a total planted area of 232,053 hectares (ha) as at 31 December 2020, of which about 65% is in Indonesia, 26% in East Malaysia and 9% in Africa. In Indonesia, our plantations are located in Sumatra, West Kalimantan and Central Kalimantan (southern region) while in Malaysia, they are located in the states of Sabah and Sarawak.
Through joint ventures, we own plantations in Uganda and West Africa of about 46,000 ha. We also directly manage 35,276 ha under smallholder schemes in Indonesia and Africa and 157,515 ha under smallholders schemes through associates in Africa. We are committed to purchasing all the fruits produced by the small landholders’ plantations.
We have a strong team of managers and staff who are devoted to the common objective of achieving the highest standards for our plantations. We adopt best management practices including good field and harvesting standards and timely application of fertilisers to optimise crop yields.
Apart from plantations, Wilmar also owns palm oil mills to process fruits from our own and surrounding plantations. The key products of oil palm cultivation and milling are crude palm oil and palm kernel.
OK WE CAN SEE THAT WIMAR OWN
65% PLANTATION LANDS IN INDONESIA
26% IN EAST MALAYSIA (SBAH & SARAWAK)
9% IN AFRICA
TOTAL: 100%
HOW BIG?
232,053 (HECTARES) + 46,000 HECTARES
= TOTAL OWNED 278,053 HECTARES
HOW MANY ACRES
TO CONVERT TO ACRES MUTIPLY BY 2.471
687,068 ACRES
ABOUT 687 THOUSAND ACRES
Now please go See FGV Annual Report
See and Compile Top 10 Plantation Assets owned by FELDA & FGV
SABAH (128,692 HECTARES)
SARAWAK (32,803)
PAHANG (143,902) Pahang Govt own 5% of FGV
JOHOR (33,914)
KELANTAN (24,620)
PERLIS (4340) Where MSM got its sugar plantations
TRENGGANU (13,395)
NEGERI SEMBILAN (12,867) Decades ago some Felda settles sold land and became INSTANT MILLIONAIRES
PERAK (15,551)
USA (VALUABLE ASSETS)
TOTAL LANDBANK = 410,084 HECTARES
To convert to Acres multiply by 2.471
= 1,013,317 ACRES
That means that FGV has 326,249 Acres more lands than WIMAR or More by 47% Extra Land Size
AND SEE AGAIN
WIMAR LANDS ARE IN EAST MALAYSIA, INDONESIA & AFRICA
FGV ASSETS ARE IN WEST MALAYSIA, EAST MALAYSIA & USA WHICH ARE SUPERIOR IN VALUE
Let us take 3 Agriculture Lands sold
1) Tradewind bought KUB Oil Palm lands in Sabah for Rm26,000 an acre
2) Scientex bought agriculture land in Tasek Gelugor, Seberang Prai Utara located on Penang Mainland for Rm718,804 per acre
3) MMC of Syed Moktar sold Lands in Senai for Rm2 millions
If we take the lowest Selling Prices of Sabah lands by Kub, that is Rm26,000 per acre
What will be the Assets Value of FGV?
Multiply 1,013,317 by Rm26,000
= Rm26,346,242,000
That is a Whopping Rm26.3 BILLIONS WORTH OF VALUE!
Now Felda & FGV got debt of about Rm5 Billions to Rm6 Billions
So?
That is really nothing at all if we now "SEE" Its Real Value
FGV Got High Debt they say?
What About Wilmar?
Got debt or not?
See the truth revealed
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Wilmar International Limited (SGX:F34) does carry debt. But the real question is whether this debt is making the company risky.
The chart below, which you can click on for greater detail, shows that Wilmar International had US$24.4b in debt in June 2020; about the same as the year before. However, it also had US$3.60b in cash, and so its net debt is US$20.8b.
The latest balance sheet data shows that Wilmar International had liabilities of US$23.1b due within a year, and liabilities of US$6.65b falling due after that. Offsetting these obligations, it had cash of US$3.60b as well as receivables valued at US$12.7b due within 12 months. So its liabilities total US$13.4b more than the combination of its cash and short-term receivables.
= So WILMAR HAS MORE THAN USD20 BILLIONS IN DEBT OR ABOUT RM82 BILLIONS
SO WILMAR HAS 10 TIMES (X) MORE DEBT THAN FGV?
TRUTH IS STRANGER THAN FICTION?
ALL THESE ARE FIGURES YOU CAN CHECK & COUNTER CHECK
KINDEST REGARDS
Calvin Tan Research
Please do not take this as a buy or sell call
This is to highlight te great discrepancy between 2 Giant Plantation Shares & Their Assets & Value
Created by calvintaneng | Jun 25, 2024
Created by calvintaneng | Jun 20, 2024
calvintaneng
FGV IS VERY UNDERVALUE. THE INTRINSIC VALUE OF FGV PROVES IT (FELDA GLOBAL VENTURE) (5222) Calvin Tan Research
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-04-14-story-h1563307511-WHAT_IS_THE_INTRINSIC_VALUE_OF_FGV_FELDA_GLOBAL_VENTURE_Calvin_Tan_Rese.jsp
2021-04-14 08:03