Bursa Malaysia Stock Price Target: FGV

KUALA LUMPUR: Alliance Research has revised upward Felda Global Ventures Bhd's 2014 and 2015 earnings estimates by 30 per cent and 32 per cent, respectively.

This is given that its acquisition of Felda Holdings Bhd would be completed by year-end.

The research note said the 51 per cent stake acquisition in Felda Holdings from Koperasi Permodalan Felda for RM2.2 billion, would streamline the group's operations and significantly, earnings accretive.

"We are upgrading our call on Felda Global from 'sell' to 'neutral' with a higher target price of RM4.03 from RM3.10 previously," it said in a note.

Meanwhile, in a separate note, RHB Research said the acquisition would enable Felda Global to have complete control over the entire plantation value chain, resulting in better operational efficiency.

The research house expects this acquisition to add 10 per cent to the company's 2014 net earnings estimates, leading to its recommendation to "buy" from "neutral", with a higher target price of RM4.84 from RM4.60.

Felda Holdings is the largest crude palm oil producer in the world with production of 3.3 million metric tonnes, accounting for eight per cent of the global market last year.

It operates 71 palm oil mills, seven refineries, four kernel crushing plants as well as several bulking installations and distribution depots and warehouses.

HwangDBS Vickers Research said Felda Holdings contributed 19 per cent of Felda Global's 2012 financial year core profit.

It expects the deal to boost the company's 2014 financial year core earnings by about 20 per cent.

"We maintain our forecast and our 'hold' recommendation for now, pending shareholder approval of Felda Global and Koperasi Permodalan Felda," it added in a note. -- BERNAMA

September 25, 2013

FGV - Staying the course

Stock Name: FGV
Company Name: FELDA GLOBAL VENTURES HLDG BHD

Research House: MIDF

Price Call: HOLD

Target Price: 4.80

July 10, 2013

Expanding Indonesian operation

Stock Name: FGV
Company Name: FELDA GLOBAL VENTURES HLDG BHD

Research House: MIDF

Price Call: HOLD

Target Price: 4.76

May 3, 2013

Affin cuts 2013 palm oil price forecast

Stock Name: FGV
Company Name: FELDA GLOBAL VENTURES HLDG BHD

Research House: AFFIN

Price Call: SELL

Target Price: 4.07

Affin Investment Bank cut its average selling price forecast on Malaysian crude palm oil this year to RM2,600 per tonne from RM2,800, citing a sluggish price outlook amid high inventory levels and an uncertain global economy.

"While exports may pick up again ahead of Ramadan, challenges remain - including uneven global growth, high palm oil stocks, the outbreak of the H7N9 virus in China, and likely delay in the implementation of B10 biodiesel policy," Affin said in a note on Friday.

The research house also slashed its price forecasts for 2014-2015 to RM2,700 from RM2,800.

Palm oil futures on the Bursa Malaysia Derivatives Exchange have lost 7.3 per cent so far this year.

Affin added that Malaysian planters now face new challenges including the revised criteria for producing certified sustainable palm oil and new regulations that cap plantation land ownership in Indonesia.

It also cut its rating on oil palm planter Felda Global Ventures Holdings Bhd's to 'reduce' from 'add' and lowered its target price to RM4.07 per share from RM4.64.

Affin upgraded Sarawak Plantation Bhd to 'buy' from 'add', and raised its target prices on IOI Corporation Bhd , Sime Darby Bhd, Genting Plantations Bhd, IJM Plantations Bhd by between four and 18 per cent.

Shares in Felda Global slipped 0.44 per cent against the Malaysian benchmark stock index's 0.36 per cent loss.-- Reuters

January 25, 2013

So-so FY12 but CPO recovery to support FY13 earnings

Stock Name: FGV
Company Name: FELDA GLOBAL VENTURES HLDG BHD

Research House: MIDF

Price Call: TRADING BUY

Target Price: 5.27

December 26, 2012

Attractive Offer for Its 20% stake in Tradewinds

Stock Name: FGV
Company Name: FELDA GLOBAL VENTURES HLDG BHD

Research House: TA

Price Call: SELL

Target Price: 3.80