SGX Market Update: Golden Agri-Resources

Singapore Share Market

  • 1Q17 EBITDA up 29%
  • Creation to be 15-20% higher YoY
  • Eyes on 2H for indications of getting sought after

Better 1Q17 Core Results

Brilliant Agri-Resources announced its 1Q17 outcomes yesterday evening, with income up 37% YoY to US$2.05b, meeting 27% of our entire year gauge, as this was driven by the Plantation fragment. Announced PATMI was 60% lower to US$37.6m, shaping 18% of our FY17F gauge, yet center PATMI grew 70% to US$83.6m. The key distinction was expected to an FX misfortune this quarter versus a pick up in 1Q16. EBITDA, which likewise prohibits changes in reasonable esteem and FX, was up 29% to US$182.8m.

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Keeps up Production Expectations for the Year

Income from Plantations fragment grew 56% YoY to US$475m, and EBITDA was up 85% to US$141m on the back of solid generation YoY. The administration is keeping its desires for an FY17 generation to a 15-20% development alongside to a great extent unfaltering costs at current levels. The cost of generation ought to stay stable for the year too. In endeavors to decrease its age profile, GAR hopes to replant ~10k ha this year, with concentrate continued replanting with high-yielding planting materials.

See More – What are the gold tips for 2017 ?

Edges to Remain in 2-3% Range for Palm and Laurics

Palm and Laurics portion’s income was up 47% to US$1.85b, however, EBITDA was down 37% to US$39m because of higher CPO costs. Along these lines, EBITDA edge was at 2.1% versus 4.9% in 1Q16, against a scenery of overcapacity in the business. The administration hopes to keep up EBITDA edge in the 2-3% for the year by means of improved combination of its operations.

Look after Hold

Given the momentum absence of climate limits combined with indications of powerless worldwide palm oil request, OCBC Treasury Research stays bearish on palm oil and expects palm oil cost of MYR2,650/MT at year end. We comprehend that request is conceived by the administration to get in 2H because of restocking by key markets, for example, China and India. Local utilization development through the usage of the biodiesel arrangement in Indonesia is additionally a hotspot for elevated. All considered we keep up HOLD with reasonable esteem gauge of S$0.38.

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  • DISA
  • Genting Sing
  • Noble Group
  • Yuuzoo

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