Stock Name: KencanaAgri
Company Name: KENCANA AGRI LIMITED
UOB KayHian Research in a March 14 research report says: "We believe Kencana Agri (KAGR) will not repeat its weak performance in 2011 (net profit of US$6.2 million, -41.0% y-o-y).
"KAGR's 2011 results were affected by high production cost as more oil palm reaches maturity stage but the income generated was not enough to offset the high costs. It will take time for KAGR to perform due to its young oil palm age profile.
"As at Dec 11, KAGR has only planted about 42,714ha (about 26.5% of its total landbank). It still has about 73.5% of landbank for new planting.
'We forecast EPS of 2.0 US cents, 2.7 US cents and 3.0 US cents for 2012, 2013 and 2014 respectively. Target price of 37 cents, based on 11x 2013F PE, as young plantation companies tend to have volatile earnings. MAINTAIN SELL."
Company Name: KENCANA AGRI LIMITED
| Research House: UOB KayHian | Price Call: SELL | Target Price: 0.37 |
UOB KayHian Research in a March 14 research report says: "We believe Kencana Agri (KAGR) will not repeat its weak performance in 2011 (net profit of US$6.2 million, -41.0% y-o-y).
"KAGR's 2011 results were affected by high production cost as more oil palm reaches maturity stage but the income generated was not enough to offset the high costs. It will take time for KAGR to perform due to its young oil palm age profile.
"As at Dec 11, KAGR has only planted about 42,714ha (about 26.5% of its total landbank). It still has about 73.5% of landbank for new planting.
'We forecast EPS of 2.0 US cents, 2.7 US cents and 3.0 US cents for 2012, 2013 and 2014 respectively. Target price of 37 cents, based on 11x 2013F PE, as young plantation companies tend to have volatile earnings. MAINTAIN SELL."
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