External broker reports(aggregated public sources), Kenanga Investment Bank Bhd

Kenanga Investment Bank Bhd

External broker reports(aggregated public sources)

Established for more than 45 years, Kenanga Investment Bank Berhad is a financial group in Malaysia with extensive experience in equity broking, investment banking, treasury, Islamic banking, listed derivatives, investment management, wealth management, structured lending and trade financing. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>BPLANT’s 9MFY23 results beat our forecast but met market expectations.</li><li>Its 3QFY23 core net profit improved QoQ on steady CPO prices and easier costs.</li><li>3QFY23 core net profit recovered QoQ thanks to better margins on steady CPO prices and easier costs.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BPLANT’s 9MFY23 results beat our forecast but met market expectations.Its 3QFY23 core net profit improved QoQ on steady CPO prices and easier costs.3QFY23 core net profit recovered QoQ thanks to better margins on steady CPO prices and easier costs.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Boustead Plantations Bhd - Accept MTO of RM1.55/Share

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/boustead-plantations-bhd" target="_blank" data-smartkarma-citation="entities:11418:1" rel="noopener">Boustead Plantations (BPLANT MK)</a> shares have been on a rollercoaster ride. As <a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> pulls its offer, LTAT has emerged as an unlikely white knight. </li>
<li>LTAT aims to launch a general offer at RM1.55 per share, in line with KLK’s aborted MGO price. The government will backstop LTAT’s funding for the offer. </li>
<li>LTAT is vague on approvals and timing. Regulatory approvals should be a formality as LTAT is the Armed Forces pension fund. At the last close, the gross spread was 10.7%. </li>
</ul>



Boustead Plantations (BPLANT MK) shares have been on a rollercoaster ride. As Kuala Lumpur Kepong (KLK MK) pulls its offer, LTAT has emerged as an unlikely white knight. 
LTAT aims to launch a general offer at RM1.55 per share, in line with KLK’s aborted MGO price. The government will backstop LTAT’s funding for the offer. 
LTAT is vague on approvals and timing. Regulatory approvals should be a formality as LTAT is the Armed Forces pension fund. At the last close, the gross spread was 10.7%. 


Boustead Plantations (BPLANT MK): LTAT Emerges as a White Knight

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On the 24 August, <a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> entered an agreement with Boustead Holdings (BHB), <a href="https://www.smartkarma.com/entities/boustead-plantations-bhd" target="_blank" data-smartkarma-citation="entities:11418:1" rel="noopener">Boustead Plantations (BPLANT MK)</a>'s largest shareholder, to acquire a 33% plus 1 share stake.</li>
<li>Upon the completion of the agreement, KLK - together with BHB and LTAT - would make a Mandatory Offer for BPlant. The Offer Price would be RM1.55/share, a lifetime high</li>
<li>It all looked pretty straightforward. However the BHB/LTAT agreement has twice been delayed. This may still get done. But there remain a number of political kinks to be ironed out. </li>
</ul>


On the 24 August, Kuala Lumpur Kepong (KLK MK) entered an agreement with Boustead Holdings (BHB), Boustead Plantations (BPLANT MK)'s largest shareholder, to acquire a 33% plus 1 share stake.
Upon the completion of the agreement, KLK - together with BHB and LTAT - would make a Mandatory Offer for BPlant. The Offer Price would be RM1.55/share, a lifetime high
It all looked pretty straightforward. However the BHB/LTAT agreement has twice been delayed. This may still get done. But there remain a number of political kinks to be ironed out. 


BPlant/KLK: This Is Getting (Even More) Political

<ul>
<li>
<a href="https://www.smartkarma.com/entities/boustead-plantations-bhd" target="_blank" data-smartkarma-citation="entities:11418:1" rel="noopener">Boustead Plantations (BPLANT MK)</a> shares are down 16%, resulting in proprietary day trading and intraday short selling being suspended. The transaction is mired in political debate. </li>
<li>The bull case is that <a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> continues on-market purchases and the opposition will compromise, paving the way for deal completion. Timing is the key risk. </li>
<li>The bear case is a deal break. The downside is limited as the government will need another buyer, the shares trade below the undisturbed price, and the undemanding valuation. </li>
</ul>



Boustead Plantations (BPLANT MK) shares are down 16%, resulting in proprietary day trading and intraday short selling being suspended. The transaction is mired in political debate. 
The bull case is that Kuala Lumpur Kepong (KLK MK) continues on-market purchases and the opposition will compromise, paving the way for deal completion. Timing is the key risk. 
The bear case is a deal break. The downside is limited as the government will need another buyer, the shares trade below the undisturbed price, and the undemanding valuation. 


Boustead Plantations (BPLANT MK): A Transaction Mired in Political Debate

<ul>
<li>Palm oil play <a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> has entered an agreement with Boustead Holdings, <a href="https://www.smartkarma.com/entities/boustead-plantations-bhd" target="_blank" data-smartkarma-citation="entities:11418:1" rel="noopener">Boustead Plantations (BPLANT MK)</a>'s largest shareholder, to acquire a 33% plus 1 share stake.</li>
<li>Upon the completion of the agreement, KLK will make a Mandatory Offer for all shares not owned in BPlant. The Offer Price is RM1.55/share, a lifetime high. </li>
<li>The agreement conditions are rudimentary. The MGO has no minimum acceptance condition. This is done.</li>
</ul>


Palm oil play Kuala Lumpur Kepong (KLK MK) has entered an agreement with Boustead Holdings, Boustead Plantations (BPLANT MK)'s largest shareholder, to acquire a 33% plus 1 share stake.
Upon the completion of the agreement, KLK will make a Mandatory Offer for all shares not owned in BPlant. The Offer Price is RM1.55/share, a lifetime high. 
The agreement conditions are rudimentary. The MGO has no minimum acceptance condition. This is done.


Boustead Plantations' Lifetime High Offer Price

Malaysia

Boustead Plantations Bhd provides oil palm and rubber cultivation and processing services. The company also offers edible oil bulking, agricultural research, and advisory services.

Boustead Plantations (BPLANT MK)