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Company Data
 
Rea Vipingo Plantations Ltd.
http://www.reavipingo.com/
Par Value:                  5/-
Closing Price:           27.50
Total Shares Issued:          60000000.00
Market Capitalization:        1,650,000,000
EPS:             7.37
PE:                 3.731
 

Well established agricultural business with a focus on sisal.

H1 Earnings 6 months through 31st March 2014
H1 Revenue 1.310325b versus 1.243925b +5.337%
H1 Profit before Tax 191.534m versus 280.856m -31.803%
H1 Profit after Tax 123.861m versus 190.752m -35.066%
H1 Earnings Per Share 2.06 versus 3.18 -35.22%
No Interim Dividend

Conclusions

Revenues were higher which speaks to the low beta Nature of Sisal Prices.
Rea is subject of a Bidding War.

FY Earnings through 30th September 2013 versus FY through 30th September 2012
FY Revenue 2.570103b versus 2.571725b -0.6%
Net Gain arising from changes in Fair Value of biological Assets 228.154m versus 87.639m +160.33%
FY Cost of Sales [1.422005b] versus [1.394208b] +1.99%
Distribution Costs [94.711m] versus [82.538m]
Administration Expenses [628.102m] versus [576.783m]
FY Profit Before Tax 647.992m versus 555.293m +16.69%
FY Profit After Tax 442.466m versus 380.433m +16.305%
FY EPS 7.37 versus 6.34 +16.246%
Previous Dividend of 1.10 a share No Decision made for FY Dividend

Conclusions

This is an extraordinarily cheap share, On a P/E Basis and trades at an egregious Discount to its Net Asset Value and Thats why it has become subject of a bidding War.

Chairman's Statement

REA Vipingo Plantations Limited
Unaudited Condensed Interim Consolidated Financial Statements For the six months ended 31 March 2013
Chairman’s statement
The year has started well for the group and I am very pleased to report a profit before tax for the first six months of shs 281 million from a turnover of shs 1.24 billion.
The Kenyan estates, despite a slow start as a result of the drought that affected the Dwa estate during much of last year, have produced well during the period under review and overall are operating to budget in both financial and volume terms. As a consequence of last year’s drought, the volume of high grade fibre produced at Dwa has been below budget but, following satisfactory rainfall in December and again in March/April, the grade mix is expected to improve during the remainder of the year.
The Tanzanian estates have all faced some operational challenges and have, as a result, produced less fibre and poorer grades than was forecast for the period.
In common with most of East Africa, the current April/May rains have been very good at all our estates and we expect to have a good leaf position through until at least the end of the financial year.
The Tanga Spinning mill has been reasonably busy throughout with satisfactory sales into a number of our established international and regional markets.
Sisal fibre prices, which have been firm for a number of years, have remained at remunerative levels although volumes into a number of premium markets have been slightly lower than for the corresponding period last year. The indications are that prices and sales should remain at satisfactory levels for the remainder of the current financial period.
Operating costs in Kenya have been in line with expectations but costs in Tanzania have been generally higher than budgeted. The continued unreliable grid power supply situation continues to contribute to higher energy costs as we are forced to use diesel generators for extended periods.
Provided that the sisal fibre market remains robust and fibre production can be sustained at expected levels, I expect the company to continue to achieve a satisfactory level of profitability for the remainder of this financial period.

6 Months Ended March 2013
H1 Revenue 1.243925b versus 1.250034b
Cost of Sales [666.854m] versus [637.442m]
Distribution Costs [44.763m] versus [39.094m]
Administrative Expenses [300.533m] versus [277.121m]
H PBT 280.856m versus 301.889m
H1 PAT 190.752m versus 208.402m
H1 EPS 3.18 versus 3.47


FY Results through September 2012 versus September 2011
FY Turnover 2.571725b versus 2.115616b +21.559%
Gross Profit 1.265156b versus 1.219700b
Administrative Expenses [576.783m] versus [472.160m]
FY Profit Before Tax 555.293m versus 678.846m -18.200446%
FY Profit After Tax 380.433m versus 467.196m -18.571%
Profits from Biological Asset Revaluation 61.347m versus 107.008m
FY Earnings Per Share 6.34 versus 7.79. -18.613%
FY Dividend 1.10 Unchanged.

Conclusions

The Headline Decline in FY PAT -18.571% veils the Fact that the Earnings has entered a much more elevated Normal.
The PE is 3.099 and as such Rea Vipingo is one of the Cheapest shares at the Nairobi Securities Exchange.
The Dividend Pay Out Ratio of 17.35% versus the Earnings Per Share needs some Explanation.
This is Cheap Share with Plenty of Upside.


Rea Vipingo Annual Report
http://www.rich.co.ke/media/docs/Rea%20Vipingo%20Annual%20report%20&%20Financial%20statements.pdf


Revenue 1.250034b versus 0.974725b +28.244%
Profit Before Tax PBT 301.889m versus 227.695m +32.584%
PAT 208.402m versus 153.402m +35.85%
Earnings Per Share 3.47 versus 2.56 +35.546%

Conclusions

Probably the cheapest share at the Securities Exchange.


FY Sep 2011 versus FY Sep 2010
Turnover 2.115616b versus 1.441668b +46.74%
Admin Expenses 472.16m versus 402.372m +17.344%
Profit Before Tax 678.846m versus 103.91m +553%
Profit After Tax 467.196m versus 67.355m +593%
Of PAT 107.008m was a Biological Revaluation
EPS 7.79 versus 1.12 +595.5%
Dividend 1.10 versus 0.80 +37.5%

Conclusions

See Below and I had been telegraphing a High Beta FY Turnaround. Rea Vipingo essentially trades on a PE of 1.887 which is an absurd Valuation. The Decision to raise the Dividend 37.5% where EPS has increased 595.5% is only explained as follows - Either Management does not comprehend that a 14.12% Dividend Pay Out Ratio for a Mature Agricultural Business is simply so absurd its off the charts or they are deliberately trying to suppress the Price.

6 Months Ended 31st March 2011 versus 6 Months 31st March 2010
Revenue 974.725m versus 660.385m
Gains arising from Biological Gains 38.508m versus [14.027m]
Gross Profit 500.072m versus 209.146m
PBT 227.695m versus [6.988m]
PAT 153.402m versus [7.754m]
EPS 2.56 versus [0.13]
No Interim Dividend

"We have experienced a better than normal leaf position which has resulted in the production of high volumes of good quality sisal on virtually all our estates," Company Chairman Oliver Fowler said in a
statement.

"Volumes have been particularly high at Dwa, our largest estate, where we have also been able to produce a good quantity of high grade fibre. Vipingo, and our Tanzanian estates, have produced well ... despite disappointing rains."

Conclusions

A High Beta Turnaround. The Agricultural Companies remain steeply undervalued
Average Price Over the last 5 Weeks
Average Price Over the last 5 Months
No. Of Shares Traded Over the last 5 Weeks
No. Of Shares Traded Over the last 5 Months
Market Capitalization Over the last 5 Weeks
Market Capitalization Over the last 5 Months
Data Source: Nairobi Stock Exchange
Trading Day: 21 Jan 2021
 
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