Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<ul>
<li>Palm oil prices are up 177% since May 2020 and 66% since June of last year. Palm oil touched a record high of RM5,700/mt the 31 January.</li>
<li>Yet while palm oil has enjoyed a meteoric price rise, the performance of listed palm oil plays has bifurcated.  </li>
<li>Valuations appear largely constrained by environmental, social, and governance concerns, resulting in plantation stocks trading below their historical averages.</li>
</ul>


Palm oil prices are up 177% since May 2020 and 66% since June of last year. Palm oil touched a record high of RM5,700/mt the 31 January.
Yet while palm oil has enjoyed a meteoric price rise, the performance of listed palm oil plays has bifurcated.  
Valuations appear largely constrained by environmental, social, and governance concerns, resulting in plantation stocks trading below their historical averages.


CPO Plays Lag Palm Oil Prices As ESG Issues Weigh

Event-Driven

<ul>
<li>On the 24 August, <a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> entered an agreement with Boustead Holdings (BHB), <a href="https://www.smartkarma.com/entities/boustead-plantations-bhd" target="_blank" data-smartkarma-citation="entities:11418:1" rel="noopener">Boustead Plantations (BPLANT MK)</a>'s largest shareholder, to acquire a 33% plus 1 share stake.</li>
<li>Upon the completion of the agreement, KLK - together with BHB and LTAT - would make a Mandatory Offer for BPlant. The Offer Price would be RM1.55/share, a lifetime high</li>
<li>It all looked pretty straightforward. However the BHB/LTAT agreement has twice been delayed. This may still get done. But there remain a number of political kinks to be ironed out. </li>
</ul>


On the 24 August, Kuala Lumpur Kepong (KLK MK) entered an agreement with Boustead Holdings (BHB), Boustead Plantations (BPLANT MK)'s largest shareholder, to acquire a 33% plus 1 share stake.
Upon the completion of the agreement, KLK - together with BHB and LTAT - would make a Mandatory Offer for BPlant. The Offer Price would be RM1.55/share, a lifetime high
It all looked pretty straightforward. However the BHB/LTAT agreement has twice been delayed. This may still get done. But there remain a number of political kinks to be ironed out. 


BPlant/KLK: This Is Getting (Even More) Political

<ul>
<li>Palm oil play <a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> has entered an agreement with Boustead Holdings, <a href="https://www.smartkarma.com/entities/boustead-plantations-bhd" target="_blank" data-smartkarma-citation="entities:11418:1" rel="noopener">Boustead Plantations (BPLANT MK)</a>'s largest shareholder, to acquire a 33% plus 1 share stake.</li>
<li>Upon the completion of the agreement, KLK will make a Mandatory Offer for all shares not owned in BPlant. The Offer Price is RM1.55/share, a lifetime high. </li>
<li>The agreement conditions are rudimentary. The MGO has no minimum acceptance condition. This is done.</li>
</ul>


Palm oil play Kuala Lumpur Kepong (KLK MK) has entered an agreement with Boustead Holdings, Boustead Plantations (BPLANT MK)'s largest shareholder, to acquire a 33% plus 1 share stake.
Upon the completion of the agreement, KLK will make a Mandatory Offer for all shares not owned in BPlant. The Offer Price is RM1.55/share, a lifetime high. 
The agreement conditions are rudimentary. The MGO has no minimum acceptance condition. This is done.


Boustead Plantations' Lifetime High Offer Price

External broker reports(aggregated public sources), Public Investment Bank Bhd

Public Investment Bank Bhd

External broker reports(aggregated public sources)

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<ul><li>IJM bagged a job worth RM653.6m from Global Vision Logistic SB (GVL), marking its first job win in FY24.</li><li>GVL is an associate company of Swift Haulage (42.5%), Aspen Group (12.5%) and 2 private entities (45%).</li><li>IJM is appointed to build Phase 1A of Shah Alam International Logistic Hub involving a 4-storey logistic hub, 4- storey multilevel parking with 1-storey office and ancillary buildings. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IJM bagged a job worth RM653.6m from Global Vision Logistic SB (GVL), marking its first job win in FY24.GVL is an associate company of Swift Haulage (42.5%), Aspen Group (12.5%) and 2 private entities (45%).IJM is appointed to build Phase 1A of Shah Alam International Logistic Hub involving a 4-storey logistic hub, 4- storey multilevel parking with 1-storey office and ancillary buildings. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IJM Corp Berhad - First Job Win of the Year

IJM Corporation Berhad -  First Job Win of the Year

Malaysia

IJM Corporation Berhad is an investment holding company that provides construction services.  The Company, through its subsidiaries, operates in property development, provides quarrying services, manufactures and sells premix products, cultivates oil palm, and provides education services.

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Ijm Corp Bhd (IJM MK)

CPO Plays Lag Palm Oil Prices As ESG Issues Weigh

KLK's reliance on its downstream operations should help reduce palm product prices. The recent acquisition of IJM also extends the age profile of...

David Blennerhassett

BPlant/KLK: This Is Getting (Even More) Political

Only in Malaysia. One day after the KLK proposal was scuppered, LTAT, who is supposed to be cash-strapped, is proposing to make an Offer for BPLANT...

David Blennerhassett

Boustead Plantations' Lifetime High Offer Price

Both the SCA and the MGO are a lock. This could all be over very quickly. Assuming a conservative three-month timeframe to completion, this is...

David Blennerhassett

IJM Corp Berhad - First Job Win of the Year

IJM is appointed to build Phase 1A of Shah Alam International Logistic Hub involving a 4-storey logistic hub, 4- storey multilevel parking with 1...

Public Investment Bank Bhd

IJM Corporation Berhad - First Job Win of the Year

IJM is appointed to build Phase 1A of Shah Alam International Logistic Hub involving a 4-storey logistic hub, 4- storey multilevel parking with 1...

Public Investment Bank Bhd

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