Monday, September 19, 2011

Golden Agri

Golden Agri: Subsi PT SMART has obtained Roundtable on Sustainable Palm Oil (RSPO) certification for 15k hectares and 1 mill. These are the first operations from co to receive the RPSO certification. Another 104k hectares and 11 mills are to be certified.

This opens the door for major customers such as Unilever and Burger King to resume purchases which was stopped after allegations of environmentally unsustainable practices. Nestle has already resumed purchases since a couple of days ago.

Co now trades at fwd P/E of 10.2x compared to peers Indofood Agri at 8.4x and First Resources at 10.4x

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