Anglo-Eastern Plantations Share Price (AEP)

CPO price up over 20% in the last 6 months but the share price here hasn't moved. Results later this month

There’s a lot of interest income here on the cash pile.

Agree

Visitor, good to see you are on board here and ofcourse I am happy for you to quote me.

I always believed the difference in the valuation of MPE and AEP was just because of AEP's reluctance to distribute any cash to shareholders. I have been following this for over a year and Madam S K Lim's passing away has opened the door for a change in stance from the BOD. The director biy last month was a major hint. Also worth noting, all the directors earn c£2m at MPE compared to $194k at AEP in 2022.

I know where I would rather invest my money in.

Very strong results. For a £345m market cap, AEP have a Net Cash position of $277m and in addition to this they have a large Tax Receivables owed to them from past overpayment. When comparing Tax Receivables minus Tax Liabilities, there is some $30m Net due back to AEP.

"The tax receivables represent the corporate income tax ("CIT") and value added tax ("VAT") that have yet to be refunded by the Indonesia tax authority. The tax receivables relating to CIT arose due to over payment of tax. The tax receivables relating to VAT arose because the majority of the Groups' CPO was sold to bonded zones which do not attract output VAT and thus the input VAT incurred is claimable. Upon submission of a tax return (for CIT) or a request letter (for VAT refund), a tax audit will be conducted by the tax authority and whilst every effort is made to resolve this quickly, the process can sometimes take more than 12 months."

Affan does very good of summarizing the situation and AEP under-valuation by comparing to MPE (hope he doesn't mind me quoting him):

"Talking of the comparison between #AEP and #MPE again
#AEP -Mkt Cap £342m, Net Cash $277m, Planted area 68,000 hectare
#MPE Mkt Cap - £465m, Net Cash $35m, Planted area 41,000 hectare
Only difference was #MPE was paying a divi and buying shares back.
No difference now?"

https://twitter.com/feynzz