A director at Golden Agri Resources bought 250,000 shares at 0.235SGD and the significance rating of the trade was 60/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years...
Indonesia’s economic performance has been strong on a ytd basis with the rupiah outperforming its regional peers, thus resulting in the JCI outperforming its peers in US dollar terms. We highlight various sectors and stocks listed on the SGX that could benefit from this strength with our top picks being Delfi, Marco Polo Marine and Raffles Medical.
The independent financial analyst theScreener just awarded an improved star rating to GOLDEN AGRI-RESOURCES (SG), active in the Farming & Fishing industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 2 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as moderately risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date February...
GREATER CHINA Sector Industrial Automation: Slowing growth, more selective on stock picks. Maintain OVERWEIGHT. INDONESIA Results Mitra Adiperkasa (MAPI IJ/BUY/Rp875/Target: Rp1,000): 3Q21: Strict social restrictions caused a weak 3Q21; Sep 21 sales rose 50% mom. MALAYSIA Results ATA IMS (AIB MK/HOLD/RM2.57/Target: RM2.30): 2QFY22: Missed expectations, dragged by workforce restrictions and manpower shortages. We expect ATA to register muted earnings in FY22. Downgrade to HOLD. Carlsberg Brewer...
3Q21 results came in above our and consensus’ expectations, on higher CPO prices and sale volumes. We had also adjusted our earnings forecast for 2022 by 85% upwards, factoring in higher CPO price assumptions. Meanwhile, cost of production is also expected to increase by 20% due to rising fertiliser costs. GGR’s share price has appreciated by about 70% ytd and could have factored in the earnings recovery. We are ceasing coverage on GGR. The last call is SELL with a target price of S$0.18.
KEY HIGHLIGHTS Results CSE Global (CSE SP/BUY/S$0.50/Target: S$0.59): 3Q21: Results in line; improving order flows. Food Empire (FEH SP/BUY/S$0.79/Target: S$1.30): 3Q21: Below expectations due to costs; price increases will improve earnings. Golden Agri-Resources (GGR SP/SELL/S$0.27/Target: S$0.18): 3Q21: Earnings supported by high CPO ASP and contribution from downstream operations. Cease coverage. CORPORATE Bumitama Agri (BAL SP/BUY/S$0.555/Target: S$0.65): 3Q21: Results above expectations...
Most fertiliser prices soared since mid-21 driven by strong demand, supplies constraint and higher input costs. The cost of production based on current fertiliser prices is estimated to be 15-20% higher yoy for 2022, which will offset the earnings impact from high CPO ASP. High prices are not the only issue, as it is also getting tougher to acquire supplies. Thus, the sector may again suffer from low fertiliser applications in 2022. Maintain UNDERWEIGHT.
CPO prices hit a record high yesterday with 3-month futures prices closing at RM5,015/tonne. This was mainly boosted by the import duty cut by India to a record-low level since 2015 and market rumours on China’s aggressive purchase over the last few days. We are concerned over the sustainability of the current demand as the inventory in India and China has been replenished. Maintain UNDERWEIGHT.
CPO prices may remain elevated in the short to medium term in view of: a) lower production in 2H21, and b) biodiesel consumption possibly remaining intact despite being weaker than the initial target. Pak Togar revised his production forecast downwards due to the impact of the dry weather in 2019 and short-term labour efficiency. However, the production growth in Oct-Nov 21 is crucial; if the production starts to peak, this would continue in 2022. Maintain UNDERWEIGHT.
Oil World expects CPO prices to weaken in view of the strong supply coming in 2021/22 on the back of high oilseed plantings, demand rationing and rebound of palm oil production. However, the situation may turn positive if: a) there is better-than-expected vegoil demand, b) logistics disruption worsens, and c) La Nina happens at end-21. Thomas expects CPO prices to be at US$1,000/mt by end-21 and to average US$800-850/mt for 1H22. Maintain UNDERWEIGHT.
Results within expectations. Golden Agri-Resources (GGR) reported a net profit of US$148m, contributing to 50% of our full-year assumption. The good set of results was mainly attributed to the recovery in palm product output and high CPO prices.
KEY HIGHLIGHTS Results CapitaLand (CAPL SP/HOLD/S$4.10/Target: S$4.10): 1H21: Continued recovery seen post COVID-19, especially in retail and lodging businesses. ComfortDelGro Corporation (CD SP/BUY/S$1.62/Target: S$1.90): 1H21: Results in line; looking forward to domestic reopening. First Resources (FR SP/HOLD/S$1.40/Target: S$1.40): 1H21: Results below our estimates on lower-than-expected ASP. 2H21 earnings likely to be significantly higher on the back of higher sales volume and ASP. Downgr...
In an 8 August announcement, Golden Agri Resources (GGR) stated that Gemini Edibles & Fats (GEF), its 56.27%-held indirect subsidiary, had filed a draft prospectus on 7 August with the National Stock Exchange of India for a proposed listing on the Bombay Stock Exchange. GEF, described by GGR as one of the leading and fastest-growing edible oils and fats companies in India, plans to offer some Rs25b worth of shares, or around US$333m, in the proposed IPO. GGR, which plans to sell shares worth som...
KEY HIGHLIGHTS Results Riverstone Holdings (RSTON SP/HOLD/S$1.27/Target: S$1.32): 2Q21: Strong results but there are uncertainties for healthcare gloves. Sembcorp Industries (SCI SP/BUY/S$2.00/Target: S$2.59): 1H21: Strong results, but decidedly bearish guidance for 2H21. Venture Corporation (VMS SP/BUY/S$19.40/Target: S$23.57): 2Q21: Results in line; outlook remains positive. Yangzijiang Shipbuilding (Holdings) (YZJSGD SP/BUY/S$1.50/Target: S$2.00): 1H21: Net profit better than expected wit...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
We have revised our CPO assumptions to RM3,300/tonne and RM2,800/tonne for 2021 and 2022 respectively. Despite an upward revision in CPO price assumptions and overall earnings, we downgrade the sector from MARKET WEIGHT to UNDERWEIGHT. The ESG investment theme will continue to pressure the sector’s valuation despite the good earnings growth. Thus, we have adjusted down our fair value valuation by lowering our PE valuation by 1SD.
KEY HIGHLIGHTS Sector Regional Plantation: Change CPO assumption to RM3,300/tonne and RM2,800/tonne for 2021-22F. Adjusting PE valuation to factor in ESG concern. Downgrade to UNDERWEIGHT. Banking: 2Q21 Round-up: Dividend yields normalise back to pre-COVID-19 levels. Results DBS Group Holdings (DBS SP/BUY/S$30.58/Target: S$35.80): 2Q21: On an even keel. Singapore Exchange (SGX SP/HOLD/S$11.33/Target: S$11.65): FY21: Clouded by lower treasury income and cost outlook; downgrade to HOLD. StarH...
Renewable diesel production growth is overtaking the growth of the conventional biodiesel, especially in the US and EU. Vegoil is the beneficiary of this new trend as the main feedstock for renewable diesel. However, palm oil may not be the primary beneficiary given that the US and EU will be using local vegoils as the main feedstocks, ie SBO and RSO. Still, palm oil will benefit indirectly from this trend by replacing SBO and RSO in the food and chemical markets. Maintain MARKET WEIGHT.
KEY HIGHLIGHTS Sector Regional Plantation: Fast-growing renewable diesel production in the US and EU will directly benefit SBO and RSO. Palm oil will be an indirect beneficiary by taking a large share of the food and chemical markets. REITs: S-REITs bi-weekly updates (1-15 Jul 21). TRADERS’ CORNER Riverstone Holdings (RSTON SP): Trading Buy ISDN Holdings (ISDN SP): Trading Buy
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