Thursday, March 1, 2012

Golden Agri-Resources rated 'accumulate' by Phillip Securities

Phillip Securities Research in a Feb 28 research report says: "Golden Agri reported FY2011 revenue and net income at US$5.95 billion (+70% y-o-y) and US$1.27 billion (-11% y-o-y) respectively.

"Revenue for the year was higher mainly on higher CPO prices (+26% y-o-y) and higher sales volume due to a recovery of CPO production (+16% y-o-y) from bad weather in the previous year. Net income was lower due to lower net gain from changes in fair value of biological assets (-34% y-o-y).

"Golden Agri proposed a first and final dividend of $0.0184 per ordinary share, representing a payout of 30% on its core earnings. We expect Golden Agri to continue to benefit from the change in Indonesian export tax rate (as it expands its refining capacity) and firm CPO prices. Unchanged target price of 79.5 cents. ACCUMULATE."

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