Felda Global Ventures

Felda Global Ventures: Grp’s 1H core earnings came in below expectations at only 40% of our and 39% of consensus full-year earnings. The negative surprises came from weaker production, higher costs of production, lower sugar contributions and the RM40.6m listing expense charge. CIMB cut FY12 net profit forecast by 6% to account for higher costs, listing expenses and lower FFB production and fine-tune FY13-14 earnings by 1-2%. Maintain Neutral with a lower target price, still based on a 10% discount to SOP. See near-term support from its 5.5sen interim div and M&A possibilities.