Felda Global

Philippines palm oil: 1 million hectare oil palm hopes center on Caraga? FGV, NBPOL, Pertamina, PTPN among key intended FDI players?

19 April 2015: 1 million hectare oil palm hopes center on Caraga? FGV, NBPOL, Pertamina, PTPN among key intended FDI players?

Caraga eyed for oil palm amid 1-M-hectare target for Mindanao By Carmelito Q. Francisco, Correspondent  April 05, 2015 08:18:00 PM; DAVAO CITY -- Mindanao authorities are looking at developing about a million hectares for oil palm farming with about a third of the total area in the Caraga Region.... The Mindanao Development Authority (MinDA), through Public Affairs Division Chief Romeo M. Montenegro, said Caraga can become the center of oil palm production in Mindanao as studies show the climate and soil condition in parts of the region, particularly in the Agusan provinces, are ideal for both nurseries and farms. Caraga is composed of 5 provinces: Agusan del Norte and Sur, Surigao del Norte and Sur, and the Dinagat Islands..... About 60,000 hectares in Mindanao have so far been developed for oil palm production, a large portion of which are in Caraga and some in the Autonomous Region in Muslim Mindanao, according to MinDA data.....  The industry has become “exciting”, said Mr. Montenegro, as nine companies from Malaysia and Indonesia, the two biggest oil palm producers and exporters, have signaled their intention to invest.
Among these companies are Felda Global Ventures, New Britain Palm Oil Ltd.-PNG, Pertamina-Indonesia, Perkebunan Nusantara-Indonesia, and Bali Palm Oil-Indonesia
..... Officials of Felda, the Malaysian government’s Federal Land Development Authority, have visited Mindanao twice in recent months to look into investment possibilities in Mindanao..... In Davao City, oil palm projects are being eyed in the remote agricultural districts, particularly in Marilog, including some areas covered by Certificates of Ancestral Domain held by various indigenous communities.....
The Philippine Palm Oil Development Council is also pushing for the expansion of the industry in Mindanao, saying it can potentially match the importance of coconut, the country’s top agricultural export commodity..... http://www.bworldonline.com/content.php?section=Economy&title=caraga-eyed-for-oil-palm-amid-1-m-hectare-target-for-mindanao&id=105484

Felda Global IPO revisited (update 1)

21 September 2014: Lots of talk about Felda Global / FGV share price among KL share market observers. It recently fell to a low of RM3.46/share. Notably below even the most pessimistic view (Macquarie - see below) at the time of its IPO in mid 2012. The 52-week share price trading range: 3.460 - 4.700.
source: Bloomberg.com, 19 September 2014
13 July 2012: Credit Suisse issues report on Felda Global, 12 July 2012: "We initiate coverage on Felda Global Ventures (FGV) with an UNDERPERFORM rating and a target price of RM4.90, a potential downside risk of 11%. There are far better choices—younger age profile with more attractive valuations—in the region. We prefer Genting Plantations and Sime Darby in Malaysia, London Sumatra and Salim Ivomas in Indonesia.... Positives: large, leveraged to palm oil prices, fast-tracked to the indices, net cash position, clear dividend policy and a turnaround plan for downstream... Negatives: Old with falling yields, low profitability, minimal organic growth, potentially less transparency, 1QFY12 results have halved... Expensive and fully valued at CY12 and CY13 P/Es of 16.9x and 17.4x respectively..."

Source: Credit Suisse

Khor Reports Comment: This is the second "underperform" rated report on Felda Global by an investment broker that we have seen. Another report, issued by Macquarie Equities Research on 29 June 2012, gives a price target of RM3.85.

Felda Global listing: over RM600 million in profits pocketed so far?

Felda Global listing was "designed to succeed," over RM600 million in profits pocketed so far? Khor Reports.

Thank you for your overwhelming interest in our report on "Felda Global - a socio-political perspective" issued back in May. We were interviewed by Al Jazeera, Bloomberg and Reuters on the mega-listing, quoted in the Financial Times, The Edge Malaysia and also
cited in some international reports.

I've had some queries and I thought more of you may be wondering what's been happening with share trading in Felda Global so far. It's about a month and a half since the listing on 28 June. I've compiled some statistics on price and volumes traded to give a picture of what is the value of shares traded and how much profits may have been made in this so-called "designed to succeed" listing; it was the 2nd largest in the world after Facebook.

Data briefing and analysis paper issued by Khor Reports on 16 August 2012. Please contact us for a copy.