November 24, 2011

Genting Plantations (Sell): Strong production boost in 3Q



Outperformed. GENP's 9M11 net profit of RM348m (+64% YoY) accounts for 83% and 78% of our and consensus full year forecast. The results positively surprised on stronger-than-expected FFB production. We raise 2011 net profit forecast by 3%, 2012-13 by 11%. Despite the stellar results, we maintain GENP as a Sell on relatively rich valuation at 17.3x 2013 PER. Our TP is raised to RM6.70 (+10%) following the earnings revision, based on unchanged 14.5x 2013 PER.

Maybank research (24 November 2011)

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