GMG Global

GMG Global: 1Q13 revenues declined 17.4% y/y to $233.6m, mainly due to the 16.9% fall in ASPs on top of the 0.5% fall in volumes. The fall in volumes were mainly from its associate Teck Bee Hang, due to Thailand government's restriction on rubber exports in a bid to stabilize prices. Earnings, on the other hand, increased 10.8% y/y to $12.9m. Mainly held up by share of profits of associates, and unrealized FX adjustment gains. The share of profits were due to additional profits from Siat Group, which GMG acquired a 35% stake back in July 2012. The group sees that demand for natural rubber from European and US markets has stabilised and the demand from China market continues to remain strong. Management remains positive about the fundamentals and the longer term prospects of natural rubber. Group trades at 20.9x trailing P/E, 1.1x P/B.