Genting Plantations ' Expanding further into Indonesia

Stock Name: GENP
Company Name: GENTING PLANTATIONS BERHAD

Research House: RHB

Price Call: BUY

Target Price: 10.45

Genting Plantations ' Expanding further into Indonesia                                                          Outperform

News Update

-          Genting Plantations' subsidiary has entered into an S&P Agreement with Global Agrindo and Global Agripalm to establish a JV for the development of approximately 74,390 ha of oil palm plantation in Kalimantan Tengah, Indonesia for US$116m (RM356.3m). Upon completion of acquisition and subscription, GP's stake in the JV Co will be 63.2%. 14,150ha of land has already been planted, while another 4,195ha has been planted under the plasma scheme.

-          We maintain our fair value of RM10.45, based on an unchanged 17x CY12 target PER. Maintain Outperform.

Source: RHB Research - 16 April 2012