GoldenAgr - Golden Agri cut to Hold by Phillip Securities

Stock Name: GoldenAgr
Company Name: GOLDEN AGRI-RESOURCES LTD
Research House: Phillip Securities

Phillip Securities downgrades Golden Agri Resources (E5H.SG) to Hold from Buy, cuts target price to $0.61 vs $0.66 as broker revised earnings estimate down for FY2010 given its initial production estimates too optimistic, says Dow Jones.



Phillip lowers estimate of fresh fruit bunch, crude palm oil yields to 22.4 tonne/ha and 5.15 tonne/ha vs 23.1 ton/ha and 5.35 tonne/ha respectively, for FY2010. Yesterday, Golden Agri says 2Q net profit rose 19.9% to US$66.0 million ($90 million) on higher CPO prices and sales volume, FX gain, but was 25.4% lower on quarter due to increased operating costs arising from higher selling, wage costs.



Stock flat at $0.57.