GMG

GMG: Weak set of results which were slightly below estimates. 4Q12 rev at S243.5m, -21.7% yoy and net profit at $5.1m-70% qoq. Result brings FY12 rev to $1.1b, -7.5% yoy and net profit to $40.5m, -45.7% yoy. Gross margins at 12.4% vs 14.2% yoy. For the yr, tonnage sold rose 31.9% to 272.9k metric tons, but rev was impacted by a lower ASP at $4,046 per ton, -30% yoy. Share of profits from associates grew to $2.4m mainly attributed by contributions from newly acquired SIAT (which the Group owns a 35% stake), and 55%-held Teck Bee Hang. Going forward, grp expects rubber prices to remain low at current levels for 1H13, which is near the US$3070/ton. The grp has set up a subsidiary in Ivory Coast to identify opportunities to develop natural rubber and palm oil plantations in the country. Grp also have also increased its stake in PT Bumi Jaya in Indonesia, from 51% to 95%, and plan to acquire 10,000 hectares of land through PT Inobonto in Sulawesi, which will further expand plantation footprint in Indo.