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Fair Value: RM5.44
Wednesday June 27, 2012
Felda Global Ventures aiming to be among world's top five commodities giants
FELDA GLOBAL VENTURES HOLDINGS BHD
By Public Investment Bank
Fair Value: RM5.44
Outperform
WITH a strong net cash position of RM3bil upon its listing, Felda Global Ventures Holdings Bhd (FGVH) is actively looking for more plantation asset acquisitions in the South-East Asian and African regions, as well as expansion of its downstream business with the aim of becoming amongst the world's top five commodities giants by 2020.
About 85.5% of its initial public offering (IPO) proceeds have been allocated for these purposes. The group plans to replicate Felda's business model in Africa, given the favourable environment for oil palm plantings. Apart from oil palm, FGVH is also aiming for rubber plantings in Myanmar and Cambodia, thanks to these countries' recent liberalisation policies.
In the downstream segment, the group is targeting to establish footprints in China, India and Myanmar, which are the world's major vegetable oil consuming countries.
The group also recently tied up with Louis Dreyfus, a world leader in the processing of agricultural products and the merchandising of a diverse range of commodities, to explore investment opportunities in downstream activities.
In the sugar segment, FGVH unit MSM Malaysia Holdings Bhd is reportedly planning a RM100mil agricultural land acquisition in Indonesia, Myanmar and/or Cambodia to plant sugar cane.
The downstream segment, which is in the production of soybean and canola products, incurred a gross loss of RM240mil in 2011 as a result of higher cost incurred in soybeans and canola seeds, impairment of property, plant and equipment and fair value loss from exchange currency.
To stop further bleeding, the company's wholly-owned subsidiary, TRT-ETGO has entered into a tolling agreement in December 2011 with Bunge ETGO, a joint venture with Bunge Ventures Canada, one of the world's leading companies in soy products and soft oils.
The 49:51 joint-venture company will supply the soybeans and canola seeds to TRT-ETGO, which will be processed into soybean and canola products. Under the tolling agreement, TRT-ETGO will receive tolling fees, comprising a monthly fixed fee, a variable fee and the reimbursement of certain operating cost incurred from Bunge ETGO.
This could protect the company's risk exposure to the hefty cost of sales from the purchase of soybeans and seeds.
FGVH is scheduled for a listing tomorrow on Bursa Malaysia Main Market.
analisis harga FGVH..
Wednesday June 27, 2012
Felda Global Ventures aiming to be among world's top five commodities giants
FELDA GLOBAL VENTURES HOLDINGS BHD
By Public Investment Bank
Fair Value: RM5.44
Outperform
WITH a strong net cash position of RM3bil upon its listing, Felda Global Ventures Holdings Bhd (FGVH) is actively looking for more plantation asset acquisitions in the South-East Asian and African regions, as well as expansion of its downstream business with the aim of becoming amongst the world's top five commodities giants by 2020.
About 85.5% of its initial public offering (IPO) proceeds have been allocated for these purposes. The group plans to replicate Felda's business model in Africa, given the favourable environment for oil palm plantings. Apart from oil palm, FGVH is also aiming for rubber plantings in Myanmar and Cambodia, thanks to these countries' recent liberalisation policies.
In the downstream segment, the group is targeting to establish footprints in China, India and Myanmar, which are the world's major vegetable oil consuming countries.
The group also recently tied up with Louis Dreyfus, a world leader in the processing of agricultural products and the merchandising of a diverse range of commodities, to explore investment opportunities in downstream activities.
In the sugar segment, FGVH unit MSM Malaysia Holdings Bhd is reportedly planning a RM100mil agricultural land acquisition in Indonesia, Myanmar and/or Cambodia to plant sugar cane.
The downstream segment, which is in the production of soybean and canola products, incurred a gross loss of RM240mil in 2011 as a result of higher cost incurred in soybeans and canola seeds, impairment of property, plant and equipment and fair value loss from exchange currency.
To stop further bleeding, the company's wholly-owned subsidiary, TRT-ETGO has entered into a tolling agreement in December 2011 with Bunge ETGO, a joint venture with Bunge Ventures Canada, one of the world's leading companies in soy products and soft oils.
The 49:51 joint-venture company will supply the soybeans and canola seeds to TRT-ETGO, which will be processed into soybean and canola products. Under the tolling agreement, TRT-ETGO will receive tolling fees, comprising a monthly fixed fee, a variable fee and the reimbursement of certain operating cost incurred from Bunge ETGO.
This could protect the company's risk exposure to the hefty cost of sales from the purchase of soybeans and seeds.
FGVH is scheduled for a listing tomorrow on Bursa Malaysia Main Market.
