Mewah: Nomura starts at Buy with $1.30TP. Note that the palm oil refiner's large scale and risk management capability has enable it achieve stable margins. Cites Co's strong distribution network in Africa's downstream business as one of its key strengths, given that more than 40% of consumer pack earnings have come from the continent over past 3 yrs….
Forecast 17% earnings CAGR over the FY10-FY13 period, driven by volume and margin growth, tipping grp to be able to take on US$500m in loans to fund expansion. Adds, valuations are attractive as the stock trades at 10.2x FY11 PE vs Wilmar's 16.4X & Ruchi Soya's 13.9X.
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