GoldenAgri

GoldenAgri: Citi maintains Buy with $1.01 TP. House note that its latest press release, Golden Agri, as part of its aim to further integrate its operations, has entered into a 50/50 JV agreement with Stena Weco. The JV company is named Golden Stena Weco. Given that the deal provides an overall solution to GAR’s chartering and shipping activities of palm oil, house believe that the deal provides upside potential to GAR’s current palm oil and edible oil business. Also, given bottoming ship values and constrained ship financing. House views that now is still a good time to enter the shipping business