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Started: Freedom4Uall, 22 Jun 2024 19:41
Last post: 34adsaddsa, 24 Jun 2024 11:20
Ah, I think that's a non-issue. They just messed up the timing.
Customarily dour AGM statement.
Here's the first issue raised page 11 of the 2023 Annual Report.
Proposed Companies Act Ratification
The Board has become aware of an issue concerning technical compliance with the Companies Act 2006 (the “Act”).
The Act provides that a public company may, amongst other things, pay a dividend or purchase its own shares out of its distributable profits as shown in either the last accounts circulated to members or, if interim accounts are used for these purposes, interim accounts that have been filed at Companies House, which enable a reasonable judgment to be made of the profits, losses, assets, liabilities, share capital and revenues. Such interim accounts must have been filed at Companies House even if the company in question has sufficient distributable profits at the relevant time.
This issue arose because, whilst the Company had sufficient distributable profits at all relevant times, interim accounts had not been filed at Companies House prior to the declaration of the final dividend in respect of the year ended 31 December 2022 or the interim dividend in respect of the year ended 31 December 2023, together with the series of shares bought back from August 2023 to date following the announcement of the Share Buyback programme,notwithstanding that the shares bought back remained in Treasury and not cancelled. It is intended that this technical issue be ratified by a shareholder resolution, as is customary in these circumstances. Accordingly, the relevant resolution, together with explanations, will be put to shareholders at a general meeting of the Company.
If the shareholder resolution is passed, this will give the Board the necessary authorities to enter into the required waivers which will put all potentially affected recipient shareholders and the Company in the position in which they were always intended to be had the relevant actions been made in accordance with the Act, insofar as practically possible.
Neither the technical issue nor the proposed ratification has any impact on the Company's financial position.
Accounts for which company? ANGLO-EASTERN PLANTATIONS PLC accounts are on there.
Yes, I think the 100K limit applies to AEP.
Stated cash is $153M, but net current assets are $228M + $10M of long-term investments so real cash total is $238M.
Having the cash in Rupiah is a risk. Indonesia has long been a fiscally responsible country, and is a democracy with a broad economic base. Would I prefer having it in $/£? Yes. Do I think there's a risk of a big deval? No, but if China devals then I'd expect asian currencies to fall.
The Naira's valuation was fake. People couldn't actually exchange meaningful amounts at the official prices. The Rupiah's valuation is real in that you can actually exchange at those prices.
The Rupiah has been weakning recently due to general dollar strength and concerns about somewhat higher government borrowing to fund a school lunch program.
Why were the interim 2022 and 2023 account's not filed at companies house? Also the Indonesian law limiting company's not listed in Indonesia or that are not majority owned locally to a national total of 100k hectares does this limit apply to AEP, and finally are there any concerns in regards to the FY23 stated cash position of 152m as for example PZ Cussons FY23 had approx 250m cash balance of which 200m held in Nigeria which it could not repatriate, the recent floating of NGN significantly devalued 200m cash pile, repat still an issue 50m realizable at best.
Started: Hunter-2, 3 Apr 2024 11:03
Last post: Pangolin, 20 May 2024 19:38
Can't do much wrong with this at these prices!
Just bought some shares Oangolin looks like a good company
This is still a no-brainer.
CPO price up over 20% in the last 6 months but the share price here hasn't moved. Results later this month
Started: CrudeTrader, 21 Apr 2023 10:07
Last post: 3dartfinish, 2 Sep 2023 21:32
There’s a lot of interest income here on the cash pile.
Agree
Visitor, good to see you are on board here and ofcourse I am happy for you to quote me.
I always believed the difference in the valuation of MPE and AEP was just because of AEP's reluctance to distribute any cash to shareholders. I have been following this for over a year and Madam S K Lim's passing away has opened the door for a change in stance from the BOD. The director biy last month was a major hint. Also worth noting, all the directors earn c£2m at MPE compared to $194k at AEP in 2022.
I know where I would rather invest my money in.
Very strong results. For a £345m market cap, AEP have a Net Cash position of $277m and in addition to this they have a large Tax Receivables owed to them from past overpayment. When comparing Tax Receivables minus Tax Liabilities, there is some $30m Net due back to AEP.
"The tax receivables represent the corporate income tax ("CIT") and value added tax ("VAT") that have yet to be refunded by the Indonesia tax authority. The tax receivables relating to CIT arose due to over payment of tax. The tax receivables relating to VAT arose because the majority of the Groups' CPO was sold to bonded zones which do not attract output VAT and thus the input VAT incurred is claimable. Upon submission of a tax return (for CIT) or a request letter (for VAT refund), a tax audit will be conducted by the tax authority and whilst every effort is made to resolve this quickly, the process can sometimes take more than 12 months."
Affan does very good of summarizing the situation and AEP under-valuation by comparing to MPE (hope he doesn't mind me quoting him):
"Talking of the comparison between #AEP and #MPE again
#AEP -Mkt Cap £342m, Net Cash $277m, Planted area 68,000 hectare
#MPE Mkt Cap - £465m, Net Cash $35m, Planted area 41,000 hectare
Only difference was #MPE was paying a divi and buying shares back.
No difference now?"
https://twitter.com/feynzz
870p at 9:40, 2.5% dividend and small buyback should help set a new level for the share price. I can not see a better public company in Palm Oil to invest in.
Started: BeardedDragon, 21 Mar 2023 14:13
Last post: rugs, 29 Mar 2023 11:46
Growth of the Lim family fortune. Certainly not dividends or share price....
Growth of what?
Surely the massive buys this week should indicate positive growth potential.
for keeping banging on about unrealistic prices but if you are selling single figure shares the price is going to be below the norm. As of 1130 today for a 1000 parcel I can sell at just under 760 and buy a similar amount for 766, so 744 is not a realistic mid price.
Started: rugs, 24 Jan 2023 09:21
Last post: rugs, 24 Jan 2023 09:21
at 736 made at an unrepresentative pricing,
As of 0900 this morning I can sell at 770 and to buy its 792.
Started: Money_Hoarder_95, 13 Jan 2023 15:36
Last post: 34adsaddsa, 14 Jan 2023 10:15
No. It's because this thing is illiquid as hell, volume was the highest since May and the management refuse to do the obvious thing to benefit shareholders. Looking at fundamentals is a waste of time until that changes. Market cap now just 66% of MP evans.
Growing tensions between Asian palm oil producers and the European Union - https://www.reuters.com/markets/commodities/growing-tensions-between-asian-palm-oil-producers-european-union-2023-01-13/
Indonesia palm oil export curbs, biodiesel plans to hit world vegoil supplies - https://www.reuters.com/markets/commodities/indonesia-palm-oil-export-curbs-biodiesel-plans-hit-world-vegoil-supplies-2023-01-13/
However, LSE showing 784 as a midpoint in the current pricing is a bit of a joke as the spread is 817 to 790.
34. Nothing changes here. In a year or so the cash balance will exceed the market cap.
I think Madam Kim must have had a ghost writer because I sense that - despite her death - the same hand is behind these management descriptions.
That trading update couldn’t have been worded more negatively. Decreasing output, increasing costs, weak prices, late milestones, etc yet still up 4%. Any other company would have taken a hammering. Just goes to show the current value here
So AEP have Net Cash of $253m, inventories full to brim (probably another $30-40m, in Interims it was $40m), so GBP terms circa £246m.
Market Cap of £313m. Normalised for Net Cash + Inventories, AEP is valued at £67m?!!
Started: CardPlayer, 19 Sep 2022 01:54
Last post: 3dartfinish, 23 Sep 2022 19:42
Given we hold so much cash these rate increases should be favourable
Started: Malik-, 14 Sep 2022 12:42
Last post: Malik-, 16 Sep 2022 09:59
Starkest valuation disconnect I am aware of…
This is a SCREAMING Buy.
NO BRAINER Relative trade: LONG AEP, SHORT MPE
AEP Massive valuation discount to MP Evans and Asia peers unsustainable. Ex mountain of cash on B/S (USD190m vs mcap 350m) AEP trades on 2-4x discount to MPE on FCF Y and PE.
Generated punchy 40% ROE at H1 yet trading on 0.6X BV ex cash.
Trades like total roadkill
BUY
they haven't paid out the money
How can we be marked down on the strength of these results ?? Just look at the amount of cash we are holding.
Started: Visitor, 25 Aug 2022 17:36
Last post: Visitor, 25 Aug 2022 17:36
Very impressive 1H 2022 Results, when you put it in perspective of current AEP market cap of £374m ($441m):
1) AEP has Net Cash of $247m with increase in Inventory of $41m = $288m
2) Profit after tax for 6 months 1H 2022 was $69m, so annualized $138m. That's a PE of only 1.1 when taking into account cash position.
3) Cash + Inventory Increase of $53.2m, annualized "free cashflow" of $106m. Or FCF ratio of only 1.4 when taking into account existing cash position.
The big unknown of course is what path new Chairman Jonathan Law Ngee Song and NED Marcus Chan Jau Chwen (Genton International Limited 51% majority shareholder) will take company now and how they will distribute and use the huge cashpile. The younger shareholders of Genton may want an income from their holdings to pursue other ventures etc.
Expansion continues with 7th mill in North Sumatera due to be complete year end ($22m capex so far) and an environmental study commenced with view of applying for permits on potential 8th mill in Kalimantan. So even with organically funding growth of the company, the huge cashpile must surely be used for significantly increased dividends in future? For the answer though we may have to wait for Final Results in May 2023, where cash pile could be near the actual market cap if we're still at same share price!
Started: Malik-, 11 Aug 2022 09:29
Last post: ragnarlothbrok, 11 Aug 2022 11:42
Strangely delayed announcement considering their chair died nearly a month ago!
Don't know about double or triple the SP but cash generation and that balance is impressive!
31/12/21 - $218m
31/3/22 - $253m
June qtr would have been immense, must have close to $300m on a Mcap of $431m. With $30m/qtr the company will have cash higher than Mcap by end of 2023
Son ok Kim taking over as non Exec at board.
Business graduate. Young.
In my view, He s going to work out that the co sitting on this mountain of cash and being debt free is nonesense. Expect BIG capital rerun story.
And this will close out the massive valuation discount to peers.
This could triple from here.
Started: Skeletor, 27 Jun 2022 09:39
Last post: CardPlayer, 19 Jul 2022 16:37
In terms of ownership by Lim Siew Kim see:
https://www.investegate.co.uk/anglo-eastern-plant/rns/director-shareholding/200402021317078887U/
I gets down to her Will and family inheritance planning. For example, are the children and grandchildren interested in the family businesses, where are they tax resident and would they prefer the cash.
I would equate the Genton International Limited majority holding in Anglo Eastern as being similar to the Salomon family's 's ownership (directly and indirectly via Hansa Investment Company) of Ocean Wilsons Holdings ("OCN").
Why do they hold so much cash?
I would like to know what % of her wealth is in AEP. If it's an extremely high % then I can somewhat understand wanting to be conservative. It's a business selling a very volatile commodity product.
Never have I witnessed such a dour ceo as we have here. A proper eyeore… moans on about 2% drops here and 4% drops there. Before briefly mentioning that they are achieving 50% better prices!! Then goes on to say they expect that will pull back…. Such negativity over such positive trading.
It’s as if they dare not be bullish else we ask for more than a 0.0001% dividend.
A CEO should have at least some element of risk taking and bullishness about the company.
What would it take for them to say. “You know what, it’s going pretty well here”?
Started: 34adsaddsa, 9 Jul 2022 02:54
Last post: 34adsaddsa, 16 Jul 2022 00:22
The headline I chose now looks rather unfortunate given the news of her death.
I think this is good news. It would be surprising if her replacement suddenly started producing upbeat statements and paid out the cash balance but at least there's a chance.
Started: Malik-, 17 Jun 2022 09:37
Last post: Malik-, 17 Jun 2022 09:37
Trading on an incredible 90% (!) FCF Yield - with co effectively trading at CASH by year end.
At 3-4x discount to peers: Roadkill valuation just not sustainable…
Any hint of buybacks (rf MPEvans) or spec divi wd send this skyrocketing. BUY BUY BUY
Started: ragnarlothbrok, 20 May 2022 15:48
Last post: 34adsaddsa, 4 Jun 2022 13:16
"Separately, Indonesia’s Palm Oil Workers Union (SPKS) said in a statement on Thursday that prices of palm oil fruits in ten provinces were yet to recover to pre-export ban level after falling by about 75% as palm mills scrambled to sell locally to cope with the export ban.
SPKS said in some places independent palm oil farmers had to wait in line for two to three days to sell their fruits to mills."
Such a stupid, self-destructive policy from the Indonesian President. The man is an idiot.
Food is also a delicate subject at the moment. Paying out large dividends when people are struggling to feed themselves is not a good strategy
Agree with ragnar - I have been in this share for circa 30 years and she turned down an attempt back then with an offer of 50p when the price was around 45p.
I agree shes not exactly a dynamo, but has been consistent with low salaries, doing well for the workers and not overpaying for land....just needs even her to realise that this amount of cash is just too conservative when food costs are likely to remain high for some time.
I don't think it's possible to squeeze out minority shareholders or force a delisting with ~51% as long as the minority shareholders actually vote to oppose.
A scheme of arrangement requires 75% to force the sale of minority shareholders. In a crude takeover offer, 90% are required to force the sale of minority shareholders.
AIM requires 75% to vote to delist. I don't know what the number is for LSE but it's probably the same or higher.
Ragnar. I completely agree. I meant a delisting with a take out price of £5. There would be nothing we could do as she has over 51pct. Nice to be sitting on over $ 200 million in cash....
Started: KoR_Wraith, 19 May 2022 12:38
Last post: KoR_Wraith, 19 May 2022 12:38
Started: 34adsaddsa, 29 Apr 2022 10:08
Last post: toptiger, 5 May 2022 15:00
errrr madam lim ??? :-)
looked on advfn, great numbers, div and no expansion planned made no sense to me....
toptiger a few reasons as touched on below:
- the business is controlled by Madam Lim. How much do we know about her?
- business subject to the whim of the Indonesian government (sovereign risk). Recent example being the sudden (and some might say irrational) CPO export ban and the frequent changes to the palm oil tax regime
- questionable commitment to shareholder returns indicated by a reluctance to pay out what is clearly excess cash
what are your reasons ragnar ?
oh yes why its cheap is very easy to explain
At least they aren't on AIM and have two independent directors that don't have any obvious connection to mdm
Ragnar. Yours all true but it is also likely that Mrs Lim being the daughter of the guy who ran the Genting goup likes to keep money in the family. John Lim (her brother ??) is the executive director.
Started: SiriusB, 5 Apr 2022 23:51
Last post: jimmy00, 28 Apr 2022 09:15
It will just put a squeeze on prices for when they start exporting again imo. Indonesia can't consume all the palm oil they make, it's inevitable they will go back to exporting.
CPO now added back to the export ban list.
https://www.reuters.com/world/asia-pacific/indonesias-palm-oil-industry-braces-upcoming-export-ban-2022-04-27/
https://www.reuters.com/world/asia-pacific/indonesia-export-ban-will-not-include-crude-palm-oil-sources-2022-04-25/
CPO export ban - no longer an issue !
Therefore, sp fall = great opp to buy back before TU
Lol i need sleep! Could have swore i read my first message saying AEO so posted the second saying AEP only for first to actually say AEP
Oops fat fingers again. Should be AEP and not AEO
Last post: Scoobydoo321, 27 Apr 2022 15:14
Sorry - got muddled up - you're right.
Should be a good 'un
I saw Affan on Twitter said it will be full year results on Friday and the TU in May. Seems a bit backwards from previous years though
TU out on 29th April - this Friday
GL not that we need it given the cash they are milking from op!
It's because they actually pay out the money they make. There's really nothing more to it.
31st of March 2021- $142.3m Cash, Average CPO Price $1078
31st or September 2021 - $192.2m Cash, Average CPO Price $1178
31st of March 2022 - Average CPO Price $1500/1600? Cash?
I have no idea why MPE are worth double this, when they have a fraction of the available cash. AEP should be trading a lot higher, and also put in a dividend to attract more investors imo.
They (DKL) had over a 50% drop in output... With an increase in sale price of 26%. Lucky for them it only dropped 10%. AEP already had a large cash hoard.. next results will show a large increase that will need to be reflected in the sp. I wouldnt mind a special dividend.
DKL taking a bit of a hammering today in light of reduced production figures.
Here’s hoping AEPs production has remained strong. With all other macro factors driving up CPO prices now is a great time to produce as much as possible.
GLA
Started: Manicminer22, 6 Apr 2022 15:46
Last post: SiriusB, 6 Apr 2022 17:47
Catching up now! On a run
Thought the chart comparison with MPE was interesting.
https://twitter.com/manicminer222/status/1511698306761641989?s=21&t=1anHeWqqwO8AcAUteyH_Aw
Started: Sanchez599, 11 Mar 2022 11:59
Last post: 34adsaddsa, 11 Mar 2022 12:53
It's because they don't pay out the cash. If they said they were paying a $200M special dividend we'd probably double.
Hi all, any idea who the seller and what size the overhang is here? Given the exceptional fundamentals quite remarkable this hasn't got going yet.
Thanks to them i found out about this company.
Worth following a couple of knowledgeable chaps on Twitter - @feynzz and @Melendhar
Often producing sound financial stats and intel - big supporters of AEP