TDM 嘉隆發展 (2054)

Company background

- TDM Berhad was formed in 1965 and was listed on Bursa Malaysia in 1969.

http://www.tdmberhad.com.my/

- 嘉隆发展的主要业务为种植与提炼棕油，该公司的前身为登嘉楼发展与管理公司，嘉隆发展的种植面积约占了登嘉楼六分一的总种植面积。
- 嘉隆发展的主要股东为登州政府的两家机构，股权为68％，分别是PMINT和登嘉楼州务大臣机构。
- 嘉隆发展也是一家财务实力稳固的公司，该公司拥有1亿2200万令吉现金，有足够的财力发展这个新油棕园，并无需借贷。
http://www.nanyang.com/node/348560 (Year-2011)

http://www.investalks.com/forum/viewthread.php?tid=3544&extra=&page=16 #318 rm1

Management

- 阿米尔解释：“自2004年以来，当新管理层加入董事部后，我们已经整合业务，并开始一项计划，提高我们的鲜果仁生产。”新董事部和管理层是在2003年大选，当国阵重夺州政府政权后受委加入嘉隆发展。
嘉隆发展现任首席执行员巴鲁希罕当年加入成为总经理，及在2008年升任首席执行员职位。
http://www.kwongwah.com.my/news/2011/12/21/122.html (Year-2011)

Shareholdings

http://www.tdmberhad.com.my/

- 该公司自2004年起致力于发展及开拓两大核心业务。为了把业务重心放在油棕种植及医疗保健，该公司已在过去5年内开始脱售其非核心业务，如A&W快餐，产业发展，纤维板制造，树胶加工等。近期内，TDM更以400万零吉脱售旗下最后一个非核心业务－家畜业。

[Busy Weekly 19.3.2012-25.3.2012 #165]

Business

- TDM Group's core businesses are in palm oil plantation and healthcare.

- The Group's plantation division is involved in the development and management of palm oil plantations and in the processing of crude palm oil and palm kernel. The division currently manages approximately 37,000 hectares of palm oil plantations and owns two palm oil mills in Terengganu. In 2007, the Group ventured into the setting-up of palm oil plantations in Kalimantan, Indonesia.

- The Group's healthcare division operates four specialist hospitals, namely the Kelana Jaya Medical Centre in Petaling Jaya, Selangor, Taman Desa Medical Centre off Jalan Kelang Lama, Kuala Lumpur, Kuantan Medical Centre in Kuantan, Pahang, and Kuala Terengganu Specialist Hospital in Kuala Terengganu, Terengganu.

http://www.tdmberhad.com.my/

• Healthcare

- TDM will build a RM120m 7-storey hospital for Kuantan Medical Centre (KMC). The new facility will be equipped with the latest technology, 150 beds based on the single-room concept and serviced by 33 consultants.

- Our healthcare division has recorded double digit growth every year since 2007.

- An analyst says TDM may have found a sweet spot in running hospitals in the East Coast, given that other bigger healthcare player such as KPJ Healthcare Bhd and Sime Darby Bhd are concentrated on the West Coast of Peninsula Malaysia and Sabah and Sarawak.

http://www.theedgemalaysia.com/features/173828--corporate-tdm-shopping-for-healthcare-assets.html (Year-2010)

- TDM以1千650萬令吉向Intercontinental Nominees與Cekal Teguh全面收購TDMC醫院有限公司，以擴大社區醫院藍圖至私人保健服務，同時壯大保健部的客戶與營業額。
http://www.sinchew-i.com/sciBiz/node/45702 (Year-2011)


- Management managed to turnaround the healthcare businesses since 2007, thanks to: (1) Rising demand for community healthcare services; and (2) Improved service quality arising from the expansion of product line and increasing number of beds. 

[Hong Leong IB research 9.Aug.2011]

- TDM only ventured into the healthcare business in 1997 through the acquisition of a 70% interest in Kumpulan Mediman and now has under its stable four private hospitals. 
http://www.theedgemalaysia.com/in-the-financial-daily/191027-tdms-2q-net-profit-surges-152.html (Year-2011)

- The Terengganu state government has approved the lease of land in Batu Burok to TDM BHD to build and operate a new 130-bed specialist hospital with all the facilities to serve the people in Kuala Terengganu. In a statement Thursday, TDM Bhd chairman Datuk Roslan Awang Chik said that the new eight-storey hospital would replace the current Kuala Terengganu Specialist (KTS) hospital that was operating at or near maximum capacity.
- Badrul Hisham said the hospital project would cost RM170.2 million, excluding the cost of the lease of the land and incidental fees.
- He said the new hospital was planned to be equipped with 130-bed hospital, five operating theatres, 12-bedded intensive care unit (ICU) and a one and half storey car park with 281 parking bays.The current KTS Hospital is equipped with 33 beds, two-bedded ICU and two operating theatres, accident and emergency services were provided, runs a diagnostic imaging department, a laboratory and a pharmacy, he said. The current hospital also provides consultancy services on general surgery, obstetrics and gynaecology, orthopaedics and anaesthetics, he said.
- Roslan said the hospital to be built on a 5.79-acre land would be the city’s flagship specialist hospital that will serve the approximately 338,000 people of Kuala Terengganu.
- He said sonstruction would commence immediately and completed within 24 months once the land owner, Tabung Amanah Warisan Negeri Terengganu signs the completed lease documents.

- TDM’s healthcare division with an average growth of 12% in patients number since 2007. had recorded consecutive annual increase in revenue with an average of RM31million in which contributed an average of 7.0% annually to TDM’s profit before tax.
http://www.theedgemalaysia.com/business-news/211577-tdm-new-specialist-hospital-to-be-built-in-batu-burok-tganu-.html (Year-2012)

- 该公司的医疗保健曾在2004年蒙受将近400万零吉的亏损，惟自2007年起，该业务的净利表现才正式脱离负数。而如今，医疗保健于2010年早已为TDM 发展赚取1100万零吉的税前盈利，接受治疗的病人人数也增加至约12万人。

- 垄断瓜拉登嘉楼及关丹的市场。

[Busy Weekly 19.3.2012-25.3.2012 #165]

[Kenanga 8.Aug.2012]

- We are the number one private healthcare provider in the East Coast. Our hospitals are deliberately targeted at the upper middle class.
http://www.theedgemalaysia.com/business-news/228681-tdm-sets-lofty-targets-for-plantation-and-healthcare-biz.html# (Year-2013)

Output/Efficiency

- TDM has a FFB yield of 16.5MT per ha of matured trees for FY2009, which is lower than industry average of 20.2MT per ha, indicating that the planter is less efficient than major palm oil manufacturers.
- Nevertheless, TDM says its OER of 20% is among the highest on the East Coast, and it is continue making efforts to improve the process flow and operations at its two mills in Sg. Tonneg(双溪东聂)and Kemamam(甘马挽). 
- "We are close to achieving potential FFB yield of slightly more than 20MT per ha," TDM says, although it does not expect Terrengganu's yield to be high due to limitation on land and rainfall distribution. http://www.theedgemalaysia.com/features/173828--corporate-tdm-shopping-for-healthcare-assets.html (Year-2010)

- He(Badrul Hisham Mahari) added that TDM's plantation division would be running over 100,000ha of land and the yield from the Kalimantan plantation was 25 per cent higher than that of its estates in Terengganu.
http://www.btimes.com.my/Current ... icle/#ixzz1vE3OeYDr (Year-2012)

[Kenanga 8.Aug.2012]

Landbank

- It recently acquired 25,000ha of land for plantation in Kalimantan, Indonesia.

http://www.theedgemalaysia.com/features/173828--corporate-tdm-shopping-for-healthcare-assets.html (Year-2010)

- TDM Bhd plans to expand its land area in Kalimantan, Indonesia, in the next seven to nine years. 
- The chairman of the group, Senator Datuk Roslan Awang Chik, said the company now has a total of 25,000ha in Kalimantan for oil palm plantation and plans to increase it by 800 percent.(25,000ha x 800% = 200,000ha)

- The company also has 32,000ha in Terengganu.

http://www.accessmylibrary.com/article-1G1-227350409/tdm-expand-land-holding.html 

- 目前，嘉隆发展的油棕园大部分在盛产期，预计5年内无需翻种。
http://www.nanyang.com/node/348560 (Year-2011)


- In 2007, TDM ventured into oil palm plantations in Melawi Kalimantan, Indonesia and it secured a 40,000ha land bank there. To- date, it has planted ~3,000ha in Kalimantan and management has set a planting target of 5,000ha/annum over the next few years. 
[Hong Leong IB research 9.Aug.2011]

- TDM has spread its wings from managing 32,000ha of oil palm plantation in Terengganu to controlling 40,000ha of landbank in Kalimantan as well. Of the 40,000ha, only 3,000ha are planted at present, but the company targets to increase by 5,000ha a year, which should boost earnings.  
http://www.theedgemalaysia.com/in-the-financial-daily/191027-tdms-2q-net-profit-surges-152.html (Year-2011)

Trees age Year-2007

VS

Trees age Year-2011

Total planted areas 2007-2011

Total FFB production (own estate) 2007-2011

FFB yield per mature ha 2007-2011

OER (Oil extraction rate) 2007-2011

[Bursa announcements Year 2011]

- TDM chief executive officer Badrul Hisham Mahari said the company had been assured lease over 40,000 hectres of agriculture land there for the next 95 years from the Indonesian government, which would complement its 36,000ha oil palm plantations in Malaysia.

- He said the lease, which started two years ago, would stretch for at least 35 years before being automatically renewed for another 30 years. TDM will also be granted another 30-year lease after the first renewal period ends, Badrul Hisham said after the company's annual general meeting here yesterday.

http://www.btimes.com.my/Current ... icle/#ixzz1vE3OeYDr (Year-2012)

- TDM has planted a total of 6,574 hectares from the total of 20,000 hectares acquired in Kalimantan from the total package of 40,000 hectares of land. "We plan to plant 5,000 hectares a year in Kalimantan, so we will have land reserved to ensure our growth can be sustained for seven to eight years," he added. 

[Bernama June.2012]

- On top of its 32,459 ha of palm oil estates in Terengganu, TDM owns 36,775 ha of palm oil estates in Kalimantan. As of end-2011, 6,575 ha have been planted in Kalimantan (all immature) and we expect maiden FFB contribution here from 2013 onwards at ~6,600 mt. In 2014, the FFB production should be more significant at ~42,000 mt (7% of the group’s total production). As the Kalimantan estates mature, TDM will enjoy better FFB growth, hence providing it sustainable earnings in the longer term.
[Kenanga 8.Aug.2012]

- Currently we have 40,000ha in Kalimantan, out of which 8,500ha are planted. By the end of the first quarter of 2013, the total planted area in Kalimantan would be 10,000ha. And by the end of 2013, the planted area would increase by another 5,000ha," Badrul said.
http://www.theedgemalaysia.com/business-news/228681-tdm-sets-lofty-targets-for-plantation-and-healthcare-biz.html# (Year-2013)

Growth/Strategy


- In terms of capex, management has allocated RM100m p.a. for the next 2 years, mainly for the development of its plantation land bank in Kalimantan, Indonesia as well as to expand its existing healthcare business. 
[Hong Leong IB research 9.Aug.2011]

- Badrul said the company has also made acquiring more landbank a priority, in order to grow its total landbank to 100,000ha in seven years from 69,234ha presently. 
http://www.theedgemalaysia.com/in-the-financial-daily/216925-tdm-continues-efforts-to-change-investor-perception.html (Year-2012)

- By 2016, we hope to reach 66,000ha of planted oil palm in Malaysia and Indonesia. By 2018, we will double the size of of plantations and triple the size of hospitals with the same headcount at our headquaters," Badrul told the Edge Financial Daily in phone interview.

- It has a landbank of 40,000ha in Kalimantan, Indonesia, which is expected to be fully planted by 2018.

- TDM plans to plant 7,000ha annually, next to replanting at a rate of 5% each year for its planted area.

- We are tendering for a palm oil mill in Kalimantan with an annual process capacity of 60,000 tonnes. It is expected to be operational in 2015.


- To grow its healthcare portfolio, TDM is building new hospitals and has plans to to position itself as the third largest listed healthcare company in Malaysia.

- One of the latest hospitals it is building is its 150-bed KMC in Indera Mahkota, Pahang which is expected to be fully operational by 2014.

- Last year(2012), the company acquired TDMC Hospital Sdn Bhd for a consideration of 16.5mil, increasing its exposure in Klang Valley. Renovation of TDMC is still on going. It is expected to be completed by 2013. We would then relaunch the hospital.

- "We have interest in expanding our footprint into new markets like Kota Bahru," said Badrul. "At this stage, we have not had an idea yet as to whether to acquire a hospital or build a new one."
http://www.theedgemalaysia.com/business-news/228681-tdm-sets-lofty-targets-for-plantation-and-healthcare-biz.html# (Year-2013)


Results

-由于棕榈仁（PK）和原棕油（CPO）价格上涨，TDM截至3月31日财年首季净利增长49.21%，报2904万1000令吉，上财年同期为1946万3000令吉。营业额方面，则从上财年同期的8979万8000令吉，上扬17.81%，报1亿579万2000令吉。
http://www.nanyang.com/node/328401 (Year-2011)

- TDM Bhd posted a net profit of RM32 million on the back of RM126.98 million in revenue for its 2Q ended June this year. Compared with the corresponding quarter last year, TDM’s net profit increased by 152.53% while revenue surged by about 49%. 
- For the cumulative six-month period, TDM posted a net profit of RM61.04 million from RM232.78 million in sales, gaining almost 90% and 33% from the six months ended June 2010. 
- In notes accompanying its financials, TDM attributed the better showing to higher crude palm oil (CPO) production, which increased by 26%. 
http://www.theedgemalaysia.com/in-the-financial-daily/191027-tdms-2q-net-profit-surges-152.html (Year-2011)

- 在2011财政年首9个月，嘉隆发展已录得1亿1250万令吉净盈利，超越过去的全年最佳记录。该公司过去的最优秀表现是在2008年录得1亿零30万令吉净盈利。嘉隆发展的鲜果仁生产在9月和10月超越每月7万6000公吨，也是首次创新7万公吨的记录。
http://www.kwongwah.com.my/news/2011/12/21/122.html (Year-2011)

- 2011年第4季度的营业额达1亿3542万零吉，净利则为4434万零吉。当季净利分别上扬4.19％及44.51％。另外，2011年全年的营业额达5亿323万零吉，比起2010年上涨27.59％，净利达1亿5686零吉，于2010年相比，共上扬70.98％。
[Busy Weekly 19.3.2012-25.3.2012 #165] (Year-2011)

- 嘉隆發展昨日宣佈業績時報備指出，原棕油和棕仁產量減少、生產成本提高，導致公司營業額及淨利均告下滑。截至6月底次季，該公司營業額按年減少18%至9669萬令吉、淨利 按年挫71%至940萬令吉；上半年營業額則按年減10%至1億9436萬令吉，淨利按年減56%至2707萬令吉。
http://www.chinapress.com.my/node/343979 (Year-2012)

News

- TDM以400万令吉现金把其家禽子公司TD Poultry(TDP)脱售给Vision Poultry。脱售价是按TDP截至2010年12月的340万令吉经审计净资产值而得出，并意味着交易价与账面值比为1.19倍。买家将在14天内支付100万令吉的押金，余下金额将分八年、每年按相等数额偿还。
http://www.sharesinv.com/zh/articles/26426/ (Year-2011)

Bear case

Bull case