Dear Fellow Investors in i3 Forum,
Among all Plantation Stocks Calvin is still holding CBIP, BPlant, ThPlant, Kwantas, Harnlern, SWKPLant, Kwantas, RSawit, JTiasa. WTK, ThPlant, TDM and Dutaland.
And Calvin is bullish on all Plantation Stocks going into Year 2018. Calvin is especially bullish on 2 stocks - CBIP & Dutaland. Already posted a lot on both. But now Calvin wants to highlight more on Dutaland as price has weakened to more attractive level now while CBIP is holding firm.
These are the Salient Factors for Dutaland
1) DUTALAND at 43.5 sen with NTA of Rm1.09 is selling at a huge 60% Discount to NTA. This is more than Ben Graham's requirement at 30% discount. So there is a Big Margin of safety.
2) After selling off Assets & Settling Debts Dutaland now has very minimum borrowing or gearing. So this is another Plus Point in the Margin of safety. Warren Buffet first rule is - Remember not to lose money. And Rule No. 2 is to remember rule no. 1 - NEVER TO LOSE MONEY.
So with High NTA & little debt it is hard to lose money in Dutaland.
3) A Look at Dutaland Assets show VALUABLE ASSETS
a) 6 Star Grand Duta Hotel near KL Golden Triangle - now being constructed. Ha! last time Calvin bought Malton at only 30 sen when Malton was totally unloved & overloooked. What made Calvin to buy Malton at 30 sen when nobody else were interested.
Calvin saw Pavilion being built on former BBGS Girls School Lands in Bkt Bintang. When Pavilion Mall was ready Malton share price more than doubled to over 70 sen. And Calvin made more than 100% profit from Malton)
This same scenario is repeated in Dutaland. Wait until 6 Star Grand Duta Hotel is ready. Then Mr. Market will wake up!
6 STAR GRAND DUTA HOTEL CONSTRUCTION ONGOING
REVIVAL OF GRAND DUTA HOTEL.
Finally, On January 6th, 2016 Management has submited plans to Revive the stalled project of
HOTEL GRAND DUTA near Petronas Twin Towers.
A Mammoth 60 Over Storey Tall Hotel in the Heart of Kuala Lumpur.
As of now 33 Storeys are already completed. It is A Very Grand Hotel Indeed. The basement alone consists of 7 Floors of Basement Parkings.
Let's take a closer look. It sits on 2.36 Acres of Very Prime Land. Book value Rm332.798 Millions in year 1996.
How much per sq ft?
2.36 x 43,550 = 102,778 sq ft. Now divide Rm332,798,000 by 102,778 = Rm3238 psf.
Is Rm3,238 psf the current land cost near Petronas Twin Towers?
The 33 storey buildings (uncompleted). How much does it worth?
When ready This GRAND DUTA 6 STAR HOTEL WILL BE WORTH MANY TiMES MORE. Malaysia -truly Asia with multi ethnic races and cultures is a magnet for tourists from all over the world. And GRAND DUTA HOTEL has a Very Bright Future!
COMMERCIAL SHOPS IN SEREMBAN.
182 Shophouses consisting 4 & 5 Storey Will Get A Booster When the KL - Seremban - Iskandar - Singapore High Speed Rail is launched this year.
DUTALAND IS TOP SHAREHOLDERS OF OLYMPIA SHARES, Which in turn own the Omega Security Firm (Insas got M&A Securities, BJ Corp got Interpacific Securies, Hong Leong Group got HL Securities. So is CIMB , Maybank & RHB - they all own secrity firms)
Extracted from Olympia Annual Report 20161. Kenny Height Developments Sdn Bhd 180,000,000 shares .....17.59%
3. Duta Equities Sdn Bhd...........125,122,083 shares...12.23%
6. RHB Nominees (Tempatan) Sdn Bhd OSK Capital Sdn Bhd for Duta Equities Sdn Bhd... 27,550,000 shares 2.69%
Dutaland own a total of 32.51% of Olympia shares.
Total shares owned is 332,672,083 shares. At 12 sen closing price Dutaland has Rm39.92 Millions from Olympia shares alone.
OIL PALM PLANTATION LANDS IN SANDAKAN
Dutaland also own almost 29,599 acres of Oil Palm Plantation Lands in Sabah with a book value of Rm352.181 millions or Rm11,898 per acre.
These lands are valued at only Rm11,898 per acre or just 27.3 sen psf. Cheaper than a carpet psf? Amazing
And on these lands are planted with biological assets with stated value of Rm261.848 Millions
Let's examine closer the Biliogical Assets of Dutaland:
On its 29,599 Acres of Lands are planted with Rm261.848 millions worth of Oil Palm Trees.
How much per acre?
So divides Rm261.848 millions by 29,599 acres
= Rm8,846 per acre.
I spoke to Mr. KE Tan - one of my Johor Buddies who own Oil Palm Plantations in Johor. According to him when you replant Oil Palm Estates you have to buy one year old (12 month) seedlings for Rm15 each. Since one acre land you can plant up to 60 trees so
Rm15.00 x 60 = Rm900
For Oil Palm Estates newly planted with young Oil Palm seedings - the biological assets are worth Rm900 an acre.
Since Dutaland's Plantations is Valued with Rm8,846 of biological assets an acre we may happily deduce that the Oil Palm Trees are now at various stages of maturity.
Now let's calculate the Total Land Value & Biological Value of each acre
= Rm11,898 + Rm8,846
Ha! Now we got the Land & Bilogical Assets combined value at Rm20,744 Per Acre.
Ok, what is the Current Market Value of Dutaland's 29,599 Acres of Land with Its Oil Palm Trees.
For this let us go to see Kwantas' recent Land & Oil Palms sale.
Kwantas recently disposed Plantation Lands for Rm100,448,621. Total acreage was 3,791 acres
How much per acre
So Rm100,448,621 divides by 3,791
= Rm26,494 Per Acre
Wow! Let's compare current value of Dutaland at Rm20,744 per acre book value to Kwantas' sale value of Rm26,494 an acre
So Dutaland's Assets are cheaper by 22%! Hohoho!
NOW FROM HERE WE HAVE COMPILED THE ASSETS & STATISTIC VALUE OF DUTALAND ASSET VALUE.
The Amazing Thing is THIS!
The Total Paid Up shares of Dutaland is 846,118,038 shares. And at current price of 43.5 sen the Total Value of Dutaland is only RM368.061 MILLIONS
THIS IS A REALLY RIDICULOUS PRICE TO WHICH DUTALAND HAS FALLEN DOWN INTO BARGAIN BASEMENT LEVEL!!
SEE THIS PRICE IS LESS THAN THE COMBINED VALUE OF DUTALAND'S OIL PALM LANDS AND BIOLOGICAL ASSETS ALONE RM614.029 MILLIONS (RM352.181 MIL + RM261.848 MIL)
DO YOU SEE THE AMAZING UNDERVALUATION OF DUTALAND SHARE PRICE COMPARED JUST TO ONE ASSET OF PALM OIL PLANTATIONS ALONE.
DUTALAND TOTAL PAID UP VALUE IS RM369 MILLIONS!
JUST OIL PALM PLANTATIONS ALONE IS WORTH RM614 MILLLIONS!!
SO DUTALAND'S SHARE PRICE IS DISCOUNTED BY 41% TO ITS OIL PALM LANDS ALONE!!!
AND WHEN YOU BUY DUTALAND YOU ARE GETTING THOSE PLANTATION LANDS AT A WHOPPING 41% DISCOUNT!
MORE THAN THAT!
1)YOU GET MILLIONS OF RINGGIT FREE CASH (DUTALAND IS IN NET CASH POSITION). MORE CASH ON THE WAY FROM SALE OF KENNY HILLS LANDS IN APRIL 2017 (TO BE REPORTED THIS MONTH)
2) YOU GET 6 STAR GRAND DUTA HOTEL FREE
3) YOU GET SHARES OF OLYMPIA FREE FREE
4) YOU GET SEREMBAN SHOPHOUSES, BALANCE OF KENNY HILL LANDS AND OTHERS ALL FREE FREE FREE!
HOW COME 99.9% OF THE PEOPLE DON'T KNOW?
THE 1% IS SAVVY INVESTOR LIM PEI TIAM & LIM KOK THAY (Genting)
AND DUTA YAP OF COURSE!!!
SEE HOW DUTA YAP GOBBLES UP DUTALAND SHARES BY THE HUNDREDS OF MILLIONS:
AFTER KULIM & TMAKMUR (BOTH CALVIN'S CHUN CHUN CALL) WERE TAKEN PRIVATE I THINK DUTALAND IS THE NEXT PLANTATION STOCK TO BE TAKEN PRIVATE.
MORE THAN 80% OF THE DUTALAND SHARES ARE NOW IN THE HAND OF TOP 30 SHARE HOLDERS & CALVIN'S JOHOR BUDDIES
ONLY 20% FREE FLOAT LEFT
REMEMBER BOTH WANGZNENG & MAJU PERAK ALSO GOT LITTLE FREE FLOAT?
ONCE MR. MARKET AWAKES TO DUTALAND'S DEEP DEEP VALUE THE PRICE WILL SPIKE UPWARD LIKE WANGZHENG & MAJULAH PERAK
SO YOU BETTER DON'T MISS
GO GET YOUR HANDS NOW WHILE STILL SO VERY CHEAP!!
MANY HAPPY RETIRNS
CALVIN TAN RESEARCH
REPUBLIC OF SINGAPORE