Updates & Ideas

MP Evans - Investors valuing its palm oil plantations at 40% discount in spite of growth

June 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Over the month I met with Peter Hadsley-Chaplain and Luke Shaw, respectively executive Chairman and CFO of MP Evans, which owns a large portfolio of palm oil estates in Indonesia. This sector benefits from the unusually productive nature of palm oil plantations. Oil palm trees produce fresh fruit bunches continuously over a 25-year life so once you’ve made the investment it throws off cash for long periods. Put another way, they produce 40% of the world’s vegetable oil on only 8% of the area devoted to vegetable-oil cultivation. Typically development costs are US$8,000-10,000 per hectare and include the land, seedlings, as well as constructing infrastructure such as workers’ housing, fertiliser stores, nurseries, roads and drain. Only af ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

M Winkworth - Property franchise firm returns 120p in dividends versus float price of 80p!

Lok 'n Store - 1110p cash offer from Shurgard

MP evans (December 2024)

MP Evans (November 2022)

MP Evans (August 2022)

MP Evans - Massive eps upgrades as palm oil prices soar (May 2022)

MP Evans - Palm oil business to double production by 2025 (March 2018)

MP Evans - Rejects 740p a share offer (January 2017)

MP Evans (July 2013)

MP Evans (January 2013)

MP Evens (December 2012)

MP Evans - Trading at 34% discount to NAV (June 2012)

MP Evans - H1 profit up 86% (November 2011)

MP Evans - On track for big production increase (July 2011)

MP Evans - Rise in palm oil prices and planted up area to drive eps upgrades (December 2010)

MP Evans - Higher prices offset lower production (June 2008)

MP Evans - Expanding palm oil producer (December 2007)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X