-->

Type something and hit enter

Pages

Singapore Investment

Show All

Home eaglevisioninvest WTK WTK (4243) THE HIDDEN GEM OF VALUE: SELLLING BELOW NET CASH VALUE: A TURNAROUND PLANTATION LAGGARD WITH POTENTIAL, Calvin Tan

WTK (4243) THE HIDDEN GEM OF VALUE: SELLLING BELOW NET CASH VALUE: A TURNAROUND PLANTATION LAGGARD WITH POTENTIAL, Calvin Tan

On


Dear Serious Investors,

Tonight we take another deeper look into the Assets & potential of WTK

 

A brief perusal of the latest result below will put many off

See

SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2021
 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Jun 2021
30 Jun 2020
30 Jun 2021
30 Jun 2020
$$'000
$$'000
$$'000
$$'000
1 Revenue
107,896
78,649
194,353
186,986
2 Profit/(loss) before tax
-767
-16,454
-13,009
-36,073
3 Profit/(loss) for the period
-922
-16,500
-13,585
-36,745
4 Profit/(loss) attributable to ordinary equity holders of the parent
-1,167
-16,119
-13,610
-35,989
5 Basic earnings/(loss) per share (Subunit)
-0.25
-3.38
-2.90
-7.58
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
1.7000
1.7400
 

 

A careless perusal will see only losses after losses from last year until this year and many will not bother to take a second look and give it a pass.

Ha! Not Calvin. You see. Calvin always look beyond the obvious to the Core.

From outside WTK looks like a package wrapped in toilet papers - littered only with losses after losses. And not worth much

Inside?

That is another story. So we phrase it "WTK from outside looks like a parcel wrapped in toilet paper but inside consists of Gold, Jewels & Diamonds"

Are you crazy?

No. Not at all

Let's go and see deeper

Current price of WTK is 51 sen. Its Nav is Rm1.70

So WTK is selling at 70% Discount to Net Tangible Assets.

What are the Net Assets of WTK

Now let us go and see the balance sheet

Under Non Current Assets

Property, plant and equipment.......480,829,000
 
Investment properties....................15,079,00
 
Right-of-use assets.......................130,258,000
 
Other investments.........................336,000
 
Intangible assets.........................8,889,000
 
Biological assets.......................35,542,000
 
Total........................................670,933,000
 

Above Total Assets Value is...Rm670.933 MILLIONS

 

Non-current liabilities
 
Deferred tax liabilities....30,809,000
 
Lease liabilities................5,731,000
 
Retirement benefit obligations....1,554,000
 
Loans and borrowings...............131,201,000
 
Total liabilities..........................Rm169.295 MILLIONS
 
SO NON CURRENT ASSETSRM670.9 MILLIONS LESS NON CURRENT LIABILITIES RM169.3
 
= NET SURPLUS IS RM501.6 MILLIONS
 
THIS EQUALS TO HOW MUCH PER SHARE
 
This short cut formula
 
Rm501,600,000 divides by Rm1,167,000 & Multiply by 0.25
 
Rm1.074 Sen Per Share
 
(NET ASSETS Includes PPE (Property/Plant/Equipment, Right of Use Assets, Investment properties & Others) In other words they are Oil Palm Estate Lands (30,000 Acres, Timber Lands, Warehouses, Saw Mills, Vacant Commercial lands & others. 2 Warehouses in Singapore 86 to 88, Tagore Lane & others) Refer to Annual Report of WTK Properties owned by WTK
 
Of these there is a long term borrowing of only Rm131 Millions (non current) Total borrowings (non current only 25% which are very serviceable)
 
Current assets
Biological assets....Rm1,521,000
 
Inventories.............Rm53,284,000
 
Trade receivables.........33,772,000
 
Other receivables..........Rm6,917,000
 
Tax recoverable...............Rm5,036,000
 
Cash and bank balances...Rm380,230,000..... (Cash was Rm353.9 Millions earlier)
 
Total Assets & Cash Position..........Rm480,760,000
 
 
NOTE VERY VERY CAREFULLY
 
WTK CASH HAS GONE UP FROM RM353.9 MILLIONS TO A VERY SOLID RM380.230 MILLIONS
 
 
Current liabilities
 
Retirement benefit obligations.....Rm421,000
 
Lease liabilities.....Rm641,000
 
Loans and borrowings........Rm134,197,000
 
Trade payables..................Rm39,820,000
 
Other payables..................Rm19,090,000
 
Income tax payable............Rm600,000
 
Total Liabilities.....................Rm194,769,000
 
If we match Receivables/Inventories Rm95 Millions with Rm58 Millions in Payables we now come to SEE the PURE CASH POSITION OF WTK
 
CASH IS RM380,230,000 Less Loans & Borrowings current due Rm134,197,000
 
= CASH SURPLUS (PURE CASH IN THE BANK) RM246,033,000
 
How many Cents Per share
 
Again the Short Cut Calculation is
 
 RM246,033,000 divides by Rm1.167 Millions Multiply by 0.25
 
= 52.7 SEN
 
YES!!!!
 
CURRENT PRICE OF WTK IS 51 SEN
 
SO WHEN WE BUY WTK AT 51 SEN
 
WE ARE ONLY PAYING 51 SEN CASH OUT OF 52.7 SEN CASH
 
OR 52.7 SEN LESS 51 SEN = 1.7 SEN FREE CASH
 
IN OTHER WORDS WE
 
PAY 51 SEN CASH TO BUY WTK FOR NET CASH 51 SEN
 
THEN ALL THESE ARE FREE
 
1) 1.7 SEN SURPLUS CASH FREE
2) ALL THE 30,000 ACRES TIMBER PLANTATION FREE
3) ALL 30,000 ACRES OF OIL PALM ESTATES FREE
4) ALL THE LOY TAPE BUSINESS FREE
5) ALL WAREHOUSES, SHOPHOUSES, LANDS & 2 INDUSTRIAL FACTORIES IN SINGAPORE ALL FREE
 
WE PAY 51 SEN TO GET RM1.70 ASSETS VALUE (OF THESE ASSETS 52.7 SEN IS PURE CASH)
 
HOW TO LOSE MONEY?
 
NO WONDER THERE IS SUCH A PHRASE FROM WARREN BUFFET
 
RULE OF INVESTMENT
 
RULE NUMBER ONE: NEVER TO LOSE MONEY
 
RULE NUMBER TWO
 
RULE NUMBER TWO IS TO REMEMBER RULE NUMBER ONE
 
THAT IS: NEVER TO LOSE MONEY
 
 
INSIDER BOSS ALSO KNOWS THE DEEP UNDERVALUATION OF WTK AND SEE HOW HE IS BUYING AND BUYING
 
 
HE BOUGHT 1.4 MILLION WTK SHARES ON 3 SEPT 2020 AT 50 SEN BEFORE CPO PRICES REACHED RM5,000 A TON
 
NOW AT 51 SEN WE CAN CERTAINLY JOIN HIM BUY AS WTK PROSPECTS ARE GETTING BETTER DUE TO BOTH HIGH CPO & HIGH LUMBER PRICES
 
 
NOT ONLY THAT
 
WTK HAS ALSO DONE SBB (SHARE BUY BACK) ABOUT 12 MILLION SHARES FROM OPEN MARKET
 
SEE
 
 
WITH SO MUCH CASH LOCKED UP PLUS 12 MILLION TREASURY SHARES WTK IS NOW OVERFLOWING WITH VALUE
 
PLUS ITS TURNAROUND PROFIT GROWTH WILL ALSO COME AS NEXT 3, 6 & 9 MONTHS WILL SEE BETTER PRICES OF CPO
 
ONE MORE THING
 
SUBUR TIASA, JAYA TIASA & TAANN ALL ALSO IN SIBU SARAWAK WITH SAME BUSINESSES OF TIMBER & PALM OIL HAVE SEEN THEIR SHARE PRICES MOVING UP
 
SUBUR TIASA ESPECIALLY WITH LESS CASH IN ITS BALANCE SHEET THAN DEBT HAS GONE UP MORE THAN 100% FROM 65 SEN TO RM1.39 NOW!
 
JUST IMAGINE: WTK IS IN THE SAME BUSINESS SHOULD DO WELL
 
IF CAR MARKET IS BOOMING ALL CARS WILL DO WELL AS A WHOLE
 
IT CANNOT BE THAT HONDA, TOYOTA & NISSAN CAN DO WELL AND MAZDA NOT SELLLING WELL?
 
NO! NO! NO!  ALL SHOULD DO WELL IF MARKET IS HOT IN CAR SALES. CONVERSELY, IF CAR SALES DROP ALL WILL ALSO DROP BY DEGREE
 
WTK NOW 51 SEN
 
TARGET PRICE BY JUNE 2022 RM1.00 (About 100% Upside)
 
Rm1.00 is a very conservative target as Rm1.00 with NAV of Rm1.70 it is still 42% below NTA
 
 
Warm & happy regards,
 
Calvin Tan
 
Jurong West, Singapore
 
 
Please buy or sell after doing your own due diligence or Consult your Remisier/Fund Manager
 
 
 
3 hidden Gems not yet listed on main exchanges. — Steemit
 
WTK IS ANOTHER HIDDEN GEM OF VALUE!
 
 
 
 
 
How to Find the 'Hidden Gems' on Your Staff and Help Them Shine | Inc.com
 
 

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-10-12-story-h1592027003-WTK_4243_THE_HIDDEN_GEM_OF_VALUE_SELLLING_BELOW_NET_CASH_VALUE_A_TURNAR.jsp

eaglevisioninvestWTK
Next article Next Post
Previous article Previous Post
Back to Top