Olam

Olam: CLSA noted that from a visit to Olam’s site at Nigeria and Gabon and that they were pleased with execution and asset management in the two regions. The visit eased CS’ concerns on Olam’s on the ground execution, and while downstream assets in Nigeria will likely start contributing in the near term, the Nigerian rice farms as well the bulk of Gabon’s assets will take 3-4 years to gestate. Meanwhile, poor trading environment and earnings drag will weigh on earnings. Key upside risk will come from the fertilizer project reaching financial closure. The house maintains Sell with TP: $1.57