Market's view on Anglo-Eastern Plantations

Published on April 2024

  • Indonesia has raised its rates to 6.25% to stabilise the Rupiah which has been weakening significantly against the dollar.
  • Some stock watchers believe the company is deeply undervalued and should be trading at approximately double its current share price.
  • The company’s EV is considered small compared to its direct peers.
  • Speculation of a potential dividend increase, a further share buyback, and possibly listing on another stock exchange where it would be valued more appropriately.
  • Upcoming results announcement has led to curiosity about the potential dividend.
  • A company listing at 850p is believed to be more suitable.
  • The company’s Financial Calendar for 2024 has been updated with the Annual Results Announcement scheduled for the end of April and an ex-dividend date of 14 June.
  • The company has declared an Interim dividend, breaking from their past and present policy of only paying one dividend per year as a final dividend.
  • Predictions of the company being sold in the coming years for at least 16 GBP/share.
  • Frustration expressed over the company’s ability to quintuple the dividend given the size of the cash pile.
  • Some are hopeful that the results due out this month will encourage the market.
  • Some stock watchers believe that the company’s cash flow is a problem despite being a good issue to have.
  • Company’s price of CPO has been climbing steeply recently without any effects on the stock.
  • The profitability of the company is under scrutiny with net profit for the first six months being 21M and the second half predicted to be 25M at best.
  • Flat output of CPO is causing concern.
  • The company is not distributing the cash to shareholders which is leading to a lack of interest from UK investors and non-UK investors for palm oil companies and non-UK stocks respectively.
  • Despite the stagnating production and dwindling stockpiles, palm oil prices are expected to remain stable relative to other edible oils in the near term.
  • Current CPO prices around 950US$ are considered optimal for the long term as they are very profitable, don’t attract windfall taxes or exaggerated export taxes, don’t attract too much plantation expansion, and don’t force the vegetable oil market to consider alternatives.
  • Speculation regarding a dividend of 50 cents for this year.
  • It is believed that the cash is overwhelming in Rupiah.
  • The company still has hundreds of millions of dollars in cash.
  • The market value is being questioned about being under 200M after the special dividend of $100M.
  • The company has announced the completion of the biogas plant.
  • Delisting is considered a potential catastrophe and no pathways that could lead to this are welcomed.
← Back to Home