Felda Global Ventures

Re: Felda Global Ventures

Postby winston » Tue Jul 25, 2017 8:39 pm

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Settlers' cost of FGV shares halved, windfall for 77,934 investors

As part of a package of incentives amounting close to RM1.6bil, some 77,934 Felda settlers, who are still paying for loans taken to subscribe for FGV shares during the listing exercise in 2012, will see their amounts outstanding being reduced significantly in a scheme whereby Felda matches their liabilities ringgit-for-ringgit, said an official close to the details.

Source: The Star

http://www.thestar.com.my/business/busi ... uqlXkDx.99
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Re: Felda Global Ventures

Postby winston » Sun Jan 14, 2018 8:19 am

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3Q/9M17 core earnings beat expectations, turning around y-o-y and q-o-q

Sugar segment turned around on lower raw material costs; Plantations lifted by volume rebound

Growth outlook for FFB improved as yields start to normalise, expect more earnings stability

Raise FY17/18/19F earnings by 77%/20%/9% for better Sugar margins and improved FFB yields, TP raised to RM1.85 – maintain HOLD

Valuation:
Our DCF-based TP is raised to RM1.85, which takes into account our revised CY17/18/19F CPO price forecasts of RM2,760/2,620/2,600 per MT. Maintain HOLD.

Key Risks to Our View:
A consistent delivery of profitability above our forecasted levels may enhance the stock’s fundamentals, which will bode well for its share price performance.


Source: DBS
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Re: Felda Global Ventures

Postby winston » Sun Jan 14, 2018 8:25 am

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Nov 24, 2017

A Strong Third Quarter

FGV returned to the black in 3QFY17 and registered a core net profit of RM44.3mn. The improvement was mainly due to higher CPO production (+18% QoQ), improved earnings contribution from both Sugar and Logistics and Others sector.

Valuation
We upgrade FGV to HOLD from Sell with a higher target price of RM2.01 (previously RM1.55), based on higher 1.3x CY18 P/BV.

The increase in P/BV multiple to sector average of 1.3x is to reflects its greater earnings visibility now.

Source: TA Securities
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Re: Felda Global Ventures

Postby winston » Fri Feb 23, 2018 4:04 pm

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Malaysia palm oil company FGV says Q4 net profit fell by a third

FGV saw net profits of 76.6 million ringgit ($19.62 million) for the quarter that ended in December, down from 112 million ringgit the previous year.

Revenue fell to 4.3 billion ringgit, down from 5.2 billion ringgit last year.

FGV said its crude palm oil production in 2017 increased on-year by 12 percent to 2.99 million tonnes, in line with growth of its fresh fruit bunch (FFB) production.




Source: Reuters

https://www.reuters.com/article/fgv-res ... SL4N1Q90P7
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Re: Felda Global Ventures

Postby winston » Sat May 12, 2018 10:36 am

Felda’s dilemma

by Cecilia Kok

Felda has 317 settlements nationwide, with nearly half, or 115, located in Pahang.

There are an estimated 1.2 million Felda voters, comprising about 119,000 settlers, their wives, children and grandchildren as well as employees of Felda and its various companies, who decide the fortunes of 54 parliamentary seats in the country.

These seats have long been considered Barisan Nasional’s stronghold or “fixed deposit”.

But the recently concluded 14th general election (GE14) saw Barisan’s so-called fortress being rattled, with 19 of those seats falling to Pakatan Harapan and three seats to PAS.

Rising debts have also forced many settlers to sell their fresh fruit bunches (FFB) to third parties.

There are some 3,238 settlers that owe Felda more than RM180,000.


Source: The Star

https://www.thestar.com.my/business/bus ... DQhZPpk.99
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Re: Felda Global Ventures

Postby winston » Wed May 30, 2018 8:15 am

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Felda Global Ventures Berhad
Target Price: RM1.93 (Buy)


FGV’s 1QFY18 results came in below expectations.

Excluding the impact of the Land Lease Agreement (LLA), forex and other non-core items, the group recorded a core net loss of RM3.8mn compared to a net profit of RM28.6mn in 1QFY17.

The variance was due to losses from JVs and associates, higher-than-expected finance costs and negative product mix.

We tweak our FY18-FY20 earnings lower by 12%-13% after after factoring in lower-than-expected 1QFY18 results and lower margins.

Maintain Buy with a lower target price of RM1.93 (previously RM2.09), based on 1.3x CY19 P/BV.

Source: TA Securities
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Re: Felda Global Ventures

Postby winston » Mon Jun 11, 2018 6:08 am

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FGV a takeover target ?

9 Jun 2018

by P. Aruna

Speculation that world’s largest CPO company is being eyed resurfaces

THE world’s largest crude palm oil (CPO) producer, Felda Global Ventures Holdings Bhd (FGV), may be a takeover target.

According to sources, the parties interested in the world’s largest crude palm oil producer could include local plantation companies looking to expand their landbank.

This is not the first time there has been speculation that FGV could be a takeover target.

The news portal said the parties were interested in a takeover or a restructuring of FGV, with an announcement expected prior to the May 9 general election.

FGV has denied the report, saying there was “no truth” in the story.

Now, talk about FGV being a possible takeover target has resurfaced, with sources indicating that Sime Darby Plantation Bhd is already conducting due diligence on the company.

When contacted, however, Sime Darby Plantation said it is not doing due diligence on FGV, but declined to comment on whether it is looking to acquire existing local companies as part of its expansion strategy.

“As with any other companies, Sime Darby Plantation is always open to consider all potential opportunities in the interest of maximising value for our shareholders.

“However, we have no further comments to add with regards to any acquisition of existing local companies at the moment,” it said in a statement to StarBizWeek.

The company says its immediate priority is to create more value for shareholders with its existing asset portfolio.

While it has its share of problems, it is clear why FGV could be an attractive takeover target.

As at March 31, 2018, FGV has total assets worth RM20.13bil, and boasts a total landbank of 440,577 ha in Malaysia and Indonesia, including its rubber estates, 10 refineries and 69 mills.

It is also the country’s leading refined sugar producer, through listed subsidiary MSM Malaysia Holdings Bhd (MSM), commanding almost two-thirds of the domestic market share.

However, FGV is not without its problems.

FGV was listed in 2012, and was among the world’s biggest IPOs at that time.

Today, its shares are trading at only RM1.55, a far cry from its IPO price of RM4.55 when listed in mid-2012 .

The share price has fallen over the years due to poor financial results, allegations of corruption, management changes and acquisitions that were too expensive and organisational restructuring.

Poor management in FGV was among its key issues, which ultimately led to its cornerstone investor, the Employees Provident Fund, making a full exit in early 2017.

In its plantation business, the main problem was its old trees.

When the company was first listed, almost 50% of its palm trees were 21 years old and above, and analysts often cited this as a big drag on the company’s yield performance.

However, FGV has been conducting aggressive replanting between 13,000 ha and 15,000 ha annually over the past six years, and expects to slash the percentage of its old trees (21 years and above) to 33% this year.

It says the percentage of its young and prime aged trees will increase to about 47% this year from 30% in 2012.

On the political front, the new federal government has stated that it will not interfere in the management of government-linked companies.

FGV group president and chief executive officer Datuk Zakaria Arshad (pic) was recently quoted as saying that they had been assured there “will not be any more interference from politicians”.

This would be another major plus point for the company as it could significantly change public perception towards FGV.

Creating a giant

Hypothetically, a takeover or merger of the two companies – Sime Darby Plantation and FGV – would create a giant corporation, possibly the biggest in the global oil palm industry.

Sime Darby Plantation is the world’s largest oil palm plantation company by planted area, while FGV is the world’s largest CPO producer.

Ivy Ng, regional head of plantations research at CIMB Investment Bank Bhd, however, is of the opinion that Sime Darby Plantation is unlikely to enter an M&A at the moment.

“The company is looking at reducing its gearing and wants to focus on improving its business.

“From what we gather, M&A is not a top priority for Sime Darby Plantation now.

“Unless, of course, the deal is too good to refuse,” she tells StarBizWeek.

While the company may “take a look” at what FGV has to offer, whether it decides to pursue an acquisition is another issue, she says.

“FGV’s estates are quite different from theirs and a takeover will significantly change how people look at Sime Darby Plantation. It also just came out of a demerger exercise very recently,” she says.

Ng also notes that as both companies are large, any M&A activity would take a lot of time away from Sime Darby Plantation’s focus on improving its business.

“We would be neutral on the move, if it happens, depending on the pricing,” she adds.

Another analyst, who declined to be named, says such a move would make more sense if FGV is privatised first, before any takeover is done.

“FGV’s yield is relatively low and it has a lot of legacy issues. It a takeover is done at this point, it is likely to be at a big discount and this would be met with a lot of objection from shareholders who would expect fair compensation,” he says.

A takeover, he says, would be “very challenging” and uphill task.

“FGV should be privatised, restructured, and only then should they look at the possibility of an M&A,” he says.

Back in January 2017, there was talk about the possibility of FGV being privatised when Tan Sri Shahrir Samad, who had just been appointed Felda chairman at the time, said the option of delisting FGV was a possibility.

He was quoted as saying that Felda would first gather all opinions and consider all options available as well as weigh the risks involved in pursuing such an exercise.

Later in June, he said the matter was discussed in the initial stages, but “did not think it was necessary at this juncture”.

Source: The Star

https://www.thestar.com.my/business/bus ... b5Takv3.99
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Re: Felda Global Ventures

Postby winston » Thu Aug 30, 2018 7:50 am

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FGV shares drop nearly 7% in early trade
29 Aug 2018


KUALA LUMPUR: Shares of FGV Holdings Bhd fell 7% in early trade after reports said it was investigating several of its business practices following “adverse findings” from an earlier probe into its investments.

The plantation counter slipped 11 sen, or 6.66% to RM1.54 with over six million shares done.

FGV said the internal investigations are examining open credit lines, poor purchasing trading practices and palm oil sales, direct awards of procurement contracts that breach best practices, and the shortage of workers from mid-2016 to mid-2018 that resulted in financial losses over the period.

FGV said the investigation had revealed “adverse findings”, without explaining what they were, and that it had sought legal advice on possible recourse.

FGV also said the investigations, which have been completed included the acquisition of Asia Plantations Limited (APL); investment in FGV Cambridge Nanosystems Ltd (FGV CNS) and the acquisition of the Troika condominiums,

Meanwhile, FGV registered a net loss of RM23.23mil in the second quarter ended June 30, 2018, due to lower productivity, higher production cost, higher share of losses from joint ventures and associate companies and lack of operational effectiveness and efficiencies.
.

FGV announced on Tuesday profit before zakat and tax (PBZT) fell by 98.7% to RM1.25mil from the RM102.44mil a year ago.

Revenue fell by 18.4% to RM3.43bil from RM4.21bil. Loss per share was 0.64 sen compared with earnings per share of 1.02 sen.

According to FGV, for the first half, it posted net losses of RM21.89mil compared with net profit of RM38.96mil in the previous corresponding period. Its revenue fell by 17.4% to RM7.04bil from RM8.53bil.

Source: The Star

https://www.thestar.com.my/business/bus ... RXVht8C.99
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Re: Felda Global Ventures

Postby winston » Sun Sep 02, 2018 8:25 am

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Azhar: ‘Eventually FGV will need to raise funds’

Source: The Star

https://www.thestar.com.my/business/bus ... DeM3F2C.99
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Re: Felda Global Ventures

Postby winston » Fri Sep 21, 2018 7:52 am

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Felda's cash flow ‘almost empty’

“One thing to tackle is Felda’s cash flow. We could not pay what we should have to the settlers,” said Megat Zaharuddin to reporters at a press conference yesterday.

He pointed out that restructuring some of its RM8bil borrowings and selling its properties in London, Kuching and Kota Kinabalu would improve its short-term cash flow.

Targeting to turn around Felda in two years, which he reckoned to be a tough task.

Targeting to reduce Felda’s borrowings to RM6.5bil from RM8.05bil as at June 30 by selling its properties.

He said the assets include hotels, apartments and student hostels, which carry an acquisition cost of about RM2.2bil.

Felda is the country’s most important political cog with as many as 54 parliamentary constituencies dominated by Felda settlers.


Source: The Star

https://www.thestar.com.my/business/bus ... ost-empty/
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