Golden Agri

Golden Agri: Phillip says the stock is at a good entry point, with the selldown after the company's announcement of plans for a US$400 m convertible bond issue overdone. Notes, while investors are likely to focus on the dilution effects near-term, the conversion price now represents an ~34% premium to the share price. The house notes mgt indicated the proceeds are intended for general corporate purposes as well as potential MA, which GAR aims to close within 3 - 6 months, and greenfield invmts while mgt indicated most of the funds will be allocated for upstream Indonesian acquisitions, it is also looking for downstream MA and joint-venture opportunities outside Indonesia, including in India and Europe. Phillip keeps its forecasts unchanged pending details on the bond proceeds' use. Raises TP to $0.77 from $0.75, based on 12.5X P/E from 12.0X. Keeps an Accumulate call. The stock is down 0.7% at $0.67.