[%pRLk%] 
Research by PB
Neutral – TP of RM7.78

“Strong Cash in Hand”

As of 1QFY24, Chin Teck Plantation is sitting on a cash position of RM408m with zero gearing. It also owns investment securities worth RM132m. Stripping out the combined liquid assets totaling RM540m, the group is currently trading at an undemanding valuation of only 2.6x historical P/E multiple or discounted P/B of 0.79x based on its FY23 numbers. Given steep discount to its underlying value, we do not rule out the possibility of privatisation in the future. Assuming our current valuation of 11x FY25 EPS for the upstream plantation business plus the liquid assets (cash+ investment securities for bond and equity instruments) totaling RM540m, the fair value of the company could be worth more than RM900m or RM9.84/share. Given the lack of catalyst for the time being, we continue to rate with a Neutral call and unchanged TP of RM7.78.

Analyst(s):
Chong Hoe Leong
[%RPHB%]

$KLSE-CHINTEK 
Research by PB
Neutral – TP of RM7.78

“Strong Cash in Hand”

As of 1QFY24, Chin Teck Plantation is sitting on a cash position of RM408m with zero gearing. It also owns investment securities worth RM132m. Stripping out the combined liquid assets totaling RM540m, the group is currently trading at an undemanding valuation of only 2.6x historical P/E multiple or discounted P/B of 0.79x based on its FY23 numbers. Given steep discount to its underlying value, we do not rule out the possibility of privatisation in the future. Assuming our current valuation of 11x FY25 EPS for the upstream plantation business plus the liquid assets (cash+ investment securities for bond and equity instruments) totaling RM540m, the fair value of the company could be worth more than RM900m or RM9.84/share. Given the lack of catalyst for the time being, we continue to rate with a Neutral call and unchanged TP of RM7.78.

Analyst(s):
Chong Hoe Leong
chonghoeleong@publicinvestbank.com.my

$CHINTEK / 1929 (CHIN TECK PLANTATIONS BERHAD)