Sri Trang: Standard Chartered INITIATE coverage with OutPerform rating and $1.65 TP. Note that grp is one of the largest rubber processors globally and operates an end-to-end supply chain from rubber plantations to end customers. Tip Co to achieve a net profit CAGR of 14% as a result of strong vol growth and robust profitability…..
Add that with sales volume in 2010 comprising 8% of global consumption, Sri Trang could well be world’s largest global rubber processor. Expect vol growth of 18% p.a. and Sri Trang’s global market share to reach 12%. Valuations appears compelling with grp trading at of 9.3x FY11E P/E while agricultural processor peers are trading on an average 11x P/E.
No comments:
Post a Comment