Halcyon Agri

Halcyon Agri: Group's 1st set of results after its recent IPO on 1 Feb 2013. FY12 revenues declined 4% to US$222m, earnings increased 125% to US$9.9m; Adjusted net profits increased 270%, with the absence of one-offs in FY12. The drop in revenues were mainly due to the lower ASPs for rubber over the year, with a decline of 29.8% in rubber prices to US$3273/ tonne. Sales volumes however, helped decrease the offset with an increase of 43.8% sales volume. Group is cautiously optimistic with regards to the overall sector fundamentals due to the ongoing global economic uncertainty affecting commodity prices. Halcyon Agri sells its products mainly to US (40%) and Asia-ex Singapore & China (36%). 1¢/ share dividend proposed; 2.3% indicative dividend yield Group trades at 8.7x P/E, industry upstream player GMG Global trading at 18.2x