Global Palm Resources

Global Palm Resources

Postby starbugs » Sat Apr 24, 2010 6:26 pm

This is a new IPO closing 27 Apr 2010, 12 noon. Global Palm is an Indonesian palm oil plantation owner.

Just my POV after a quick read of the Global Palm IPO prospectus:

1) Much of the earnings come from an adjustment to fair market value of its plantations. Take note!

2) EPS 4.82 cents gives P/E of 9.5, BUT taking out asset value adjustments, EPS is 0.76cents or P/E of 60.3

3) Pre IPO NAV is only 20.31 cents (IPO price is 46c)

4) Most of the trees (87.7%) are post-mature - "peaked". Productivity seems to be roughly in line with Kencana's, but Kencana has a better mix of immature and mature trees.

All in: Not Compelling
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Re: Global Palm Resources

Postby kennynah » Sat Apr 24, 2010 6:30 pm

hi starbugs <<< nice nick 8-)

can you please share with us why you would be keen to invest in a palm oil business? thanks.
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Re: Global Palm Resources

Postby starbugs » Sat Apr 24, 2010 6:51 pm

Hello, actually I'm not interested in this IPO. I looked at it because someone asked for my opinion on it.

I feel that this IPO is ripping off investors who don't read the prospectus.
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Re: Global Palm Resources

Postby winston » Wed Jan 26, 2011 1:14 pm

Not vested. From OCBC:-

Global Palm: Initiate with HOLD for long-term growth

Summary: Global Palm Resources Holdings Limited (Global Palm) is a fledging palm oil plantation owner in Indonesia, which owns about 16.1k hectares (ha) of land in West Kalimantan, Indonesia, with a planted area of 11.9k ha.

In the near-term, Global Palm should be able to benefit from buoyant CPO prices, thanks to maturity profile of its plantations, where the average age of its trees is around 12.7 years.

To capitalise on the still buoyant demand for palm oil, it intends to rapidly increase its plantation, after having raised net proceeds of S$50.6m from its IPO last year.

Despite our relatively upbeat outlook, we note that Global Palm appears to be trading at a slightly higher multiple of 16.0x versus the simple average of 15.3x.

However, we believe that Global Palm should command a slightly higher multiple due to its growth potential (albeit from a small base).

As such, we are ascribing a price multiple of 18x to its FY11F EPS, and this translates to a fair value of S$0.40. However, as the stock looks fairly valued at the moment, we initiate coverage with a HOLD rating, but we see opportunity to revisit our rating on successful execution of its expansion plan. (Carey Wong)
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Re: Global Palm Resources

Postby behappyalways » Thu Dec 13, 2018 6:40 pm

Global Palm Resources increasing land bank with Kalimantan acquisition
https://www.theedgesingapore.com/global ... cquisition
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Re: Global Palm Resources

Postby behappyalways » Thu Mar 30, 2023 3:54 pm

Adijanto family offers to take Global Palm Resources private with 25 cents a share offer
https://www.theedgesingapore.com/news/c ... hare-offer
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