05 June 2012

FELDA GLOBAL VENTURES HOLDINGS BERHAD: Short Insight

Based on FELDA GLOBAL VENTURES HOLDINGS BERHAD (FGVH) Prospectus reports:

Profit after tax in 2011 is RM1,014,665,000.
Net asset in 2011 is RM5,483,830,000.

However, last three months ended at 31 March, PAT is only RM192,165,000 compared to RM359,048,000 in the same period in the preceding year (2011).

Total IPO share number is 2,188,890,900 shares (institution offering up to 1,915,279,900 shares + retail offering of 273,611,000 shares.


Offer price is not yet determined.

If total issued shares is 3,648,152,000, and given 2011 PAT as a reference profit, EPS is around 27.8sen and NTA is 150.3sen as stated in page 15 of the FGVH Prospectus.

With PE of 16 (usually people like high PE, but I am not), estimated offer price will be 15*27.8sen = RM4.44, which is quite closed to the spread in news recently. (RM4.55). Again, the price of FGVH should be determined by its future profitability and return to shareholders. Latest three months result is not very attractive as mentioned above. However, people always crazy about Biggest, Largest IPO, namely Facebook. Therefore, how crazy will be for FGVH? I don't know. But what I will do is simply sit down and see it without participation, as usual.

As investors, we should know what we will get as a return (e.g. dividend and capital) from our investment in next 12~36months.

But, for speculation purpose, we can simply read people EQ (how crazy they are) without considering the value of a particular investment. In other words, those IPO prospectus, annual or quarter reports are total useless in short period of time. Because they really useless for speculation in short period of time. Nevertheless, they are very useful for investor like me to find those "black horses" and buy low sell high in the long term. That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage.

Written by: Xaivier Chia


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4 comments:

Valen Yim said...

How do you get the number of issued share of 3,648,152,000?

Xaivier Chia said...

Hi Valen Yim,

You can find it from Prospectus, Section 8.2.2.

In addition, you can go to download FGVH-Cover from Bursa Malaysia website, then go to page 37, section 3. Summary: No. of Shares in issue.

All the best.

Valen Yim said...

Thanks Xaivier.

Do you analyse the PE of IHH?

Xaivier Chia said...

Hi Valen,

I think I will when I free.

So far, I could not find any IPO document about IHH and therefore I could not give any comment about it.

Maybe there are numerous reports about IHH, but I more prefer to see its IPO Prospectus personally for first hand information.

All investment decision should based on our personal judgement. Analysis reports are only used as references instead of core sources for investment decision making.

Besides, PE is just one of the analysis tools. We should always use it together with other analysis tools e.g. DY, cash flow, balance sheet, profit margin, so that we can avoid potential traps and tricks.

All the best for your investment.

Best wishes.

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