Indofood Agri Resources: Lower CPO prices dent 1Q results- CIMB
- 1Q16 core net loss of Rp50bn due to lower CPO prices and higher depreciation charges; broadly in line with our estimate but below consensus.
- FFB output from nucleus estates fell 2% yoy in 1Q16 due to El Nino impact.
- It guided for FY16 FFB output to be flattish as El Nino impact on yields will be offset by new mature areas and improved yields from young estates.
- TP rises to $0.54 as we remove the 20% discount to SOP in view of better 2Q earnings. Maintain Hold; we prefer SIMP for direct exposure.
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