So fast sell out already ah? Still undervalue oh....

i have both 
any reason for doing this?

Thier 12k ha in kalimantan should be maturing now as it was planted in 2008. The two new hospital will only be ready by 2014.

Anyway speaking about small cap plantation, anyone invested in first resources?

Imho there are two ways to play plantation. One is via the cpo price increase, another in increasing cpo production. Even if cpo stays flat, the increase cpo production will increase eps as long there is still margin. I am going for the latter. Young trees and plenty if reserve land is what i see.

Wilmar is doing very well on thier lauric division, but they are suffering from over capacity in soy bean crushing in china. Also fertilizer margin is extremely low at less than 1%. This does not only affects wikmar but other similar company like golden agri. Also wilmar is building so much new refining capacity in 2013, where they are going to get enough cpo? Already now wilmar consume 30% of cpo produced in indon. Expect the figure to raise to 40% soon. Insider info says thier refinery not running to capacity due to cpo shortage...

Not yet....

I think there's just too many negative sentiments towards CPO.
Hence taking a bet on any CPO related stocks, is generally an uphill bet.
(Ah... sometimes despite the negative sentiments, there are some which would swim against the tide)

I am positive about TDM hospital thing but it's still way too early.

The last/previous time I looked at TDM was when it was 3.20.
I wanted much lower if I was going to take a long term trade on it.

Minimum wage in Indonesia the highest is 2.2 mil (RM 698) in Jakarta. In kalimantan/Sumatra the average is 1.4-1.6 mil (RM 476) per month. Most of the palm oil laborers already make >2.5 mil per month, so the minimum wage does not impact them. Also most of them are not employee. but contractual system ie. per kg harvested.

Concentrate on plantation in South Kalimantan or south Sumatra area, the volcanic soil is very fertile, yields per ha is about 23-25 tpha compared to Malaysian average of 19 tpha. OER is also higher at 23-25%, Malaysians will be lucky if we hit 21% oer. Estimated impact of labor rate is minimum <5% of cost. Some indonesian plnatation's cost is below 1k/ton.

The biggest worry is rise of diesel price which currently Rp 4,500 per liter expected to go up to 6,000 per liter, this will impact transportation costs. Yes if CPO falls below 2k, margin will be quite thin, but I am confident it will be temporary, why you ask?

There are currently 8-10 biodiesel refineries going to open up in Indonesia with capacity of 3 mil tons per annum. Since you are large shareholder of wilmar, check that they are building at least a few biodiesel plant.  This is due to the local government is committed to raise the % bio diesel in local diesel from 5% to 10%. Also since now CPO price is below crude oil price per ton, production of biodiesel is cheaper than importing diesel. Indonesia is net importer of diesel (mostly from singapore), and they have very limited self refining. In fact methanol (a component for biodiesel) suppliers in Indonesia has recently run out of capacity to supply.

Also Indonesia is one of the largest consumer of edible oil per person in SEA and this is growing at a healthy CAGR of 10% per annum. Refining capacity is going up like mushroom throughout Indonesia. Wilmar itself produce 10-15 million tons per annum, and is committed to raise this 25 mil tons per annum by FY14. Other group such as Smart, Musim Mas, Astro Agri, Lious Dreyfuss is also building new refineries. Sime Darby have a new 2,500 ton/day refinery up and running in south Kalimantan by mid 2013. There are many small players all expanding... in short we will soon face a CPO shortage in Indonesia but not necessary in Malaysia.

Anyway my insider view of this industry might be slightly   biased.. so don't take everything as it is... Everyday see CPO until blur already...

Uncle gark, will Wilmar be one of your favourite long term holding for plantation? if not why? Hopefully can give some insight to us as you're insider in the industry   

I want to re-buy it.I got some fresh ammo.
anyway off topic, I wonder how Affin bank attract you beside valuation wise perspective.

Wilmar lauric (ie. palm oil) division is doing a fantastic job.. it is just the china crushing operations which is bringing everything down. I will wait for at least they can break even for their crushing plant, then i would invest. But their valuation is very high > 10 PE...