UOBKayhian on 10 Nov 2014
FY14F PE (x): 12.8
FY15F PE (x): 11.5
9M14 results within expectation. Net profit doubled as contribution from Metal, Mineral
& Ores (MMO) contributed profit from better volume and higher operating margins from
high-valued products. The agricultural division contributed positively to 9M14 results vs
losses made in 9M13 as improvement in efficiency in logistic and new facilities
integration translated into better operating margins.
Upgrade to HOLD after recent share price weakness. Target price of S$1.25 based on
11.5x 2015F EPS, i.e. 1SD from its last 5-year mean of 16.5x. Pegging the valuation at
1SD below mean due to the low earnings visibility.
No comments:
Post a Comment