GMG Global

GMG Global: 1Q14 net profit deteriorated 79.9% y/y to $2.6m due to net loss on 35%-owned associate, SIAT SA, resulting from FX losses and lower gross profit margin of 9.4% (-3.6ppts) attributed to a higher proportion of raw materials from an external source on the increased downstream processing. Meanwhile, revenue was eased 3% to $226.5m, as the 23.2% slump in average selling prices of rubber was partially mitigated by higher sales tonnage (+26.2%) of 78,673 tons. Management expect natural rubber prices to fluctuate near current levels in the current 2Q14. The group continues to be in the process of synergizing the business entities it acquired over the last few years.