Asean Plantation: JP Morgan has 2H11/2012 outlook report. House top picks are IndoAgri (TP $3.00) & Sime. Add that CPO prices have fallen by up to 16% from a high of Rm$3,927/t in Jan-11 with the anticipated production pick-up this yr (mainly in 2H11). House sees any significant weakness in share prices from here as a buying opportunity……
Maintain CPO forecast at Rm$3,400/t for 2011 and Rm$3,200/t for 2012. Tip weather risks and positive soy-oil outlook to also provide support, with possible capital management/M&A an emerging theme in the next 12-24 mths. House also remains O/w on First Resources, Mewah and London Sumatra. Key U/w in the sector is Genting Plantations.
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