Golden Agri: 2Q10 results. Revenue +28% yoy to US$726m, supported by 11% yoy increase in avg CPO market price. Net profit +20% yoy to US$66m. Output of palm pdts rose 12% qoq to 503k tons, but would have been higher if not for heavy rainfall which disrupted harvesting in some parts of Sumatra. GAR’s total planted area stands at 433k hectares currently, the largest in Indonesia…
Mgt remains positive on outlook for its Indonesian operations (80% of revenue), underpinned by demand for edible oil and renewable energy. But is less optimistic on the China Agri-business (20% of revenue), which is expected to be volatile and challenging. Stock trades at 13.1x consensus FY10E PE, one of the cheapest in the sector.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment