Stock Name: GENP
Company Name: GENTING PLANTATIONS BERHAD
Target RM9.35
Company Name: GENTING PLANTATIONS BERHAD
| Research House: CIMB | Price Call: HOLD | Target Price: 9.35 |
Target RM9.35
Genting Plantations' US$116m acquisition of 63.2% of a JV company with Indonesian estates is a good move as it will boost its output growth, raised its planted area by 15% and enhance FY13-14 EPS by 1-3%. Our SOP-based target price rises as we up the plantation P/E from 12.6x to 14x, in line with the big-cap players. We upgrade the stock from Underperform to Neutral as the stronger growth prospects help offset our concern over its rich valuations. We continue to prefer Sime Darby.
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