Monday, November 2, 2009

GoldenAgri - Top Pick Plantation Stock in ASEAN

Golden Agri Resources’ Jakarta-listed subsidiary, PT Sinar Mas Agro Resources & Technology (PT SMART), reported a 9-month net profit of IDR536.6bn. In 3Q alone, PT SMART made IDR327.7bn compared to IDR208.9bn for 1H.

Trading buy: S$0.40-0.43
Target   Price : S$0.50 (min)

Golden Agri is trading at forward PE of 14.5x and 13.0x, which is undemanding compared with its large cap Malaysian peers, which are trading at PEs in the high teens.  There is a trading opportunity with Golden Agri given that it provides a better exposure than Malaysia-listed palm oil companies due to its cheaper valuation.


No comments:

Post a Comment