What do you folks think of the lower liner plantation companies? Amidst the global rise in the global edible oil prices, most plantation companies share price have risen in tandem but TDM seems to have fallen behind. Looking at ratios, TDM indeed is a steal when compared to others of similar acreage size. TDM owns 64,000 acres (owned) and manages another 17000 acres. Based on the current market price of RM1.53, TDM's market capitalization is RM310m. This values TDM's plantation at RM5,152/acre, a fifth of Hap Seng plantation's whose recent IPO values it at RM27,500/acre. Granted the latter deserves a premium for higher yield but the disparity is far too great and wide. Furthermore TDM is sitting on a pile of cash of RM74.5m (net) or in cash/share of 35sen. NTA is a further RM2.38 and not many plantation related companies trade below their NTA. Monthly production statistics have shown a vast pickup in production and selling prices. Their most recent Q3's CPO is transacted at RM2015/tonne. It certainly appears there is upside to TDM's earnings from the plantation side. Your thoughts please.
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