Thursday, October 27, 2011

Plantation / CPO: Golden Agri Res (E5H.SI)

CPO price move back to RM3000 level. Therefore, we can see plantation counters to move up in tandem with the CPO price movement.

If the CPO prices can maintain at average RM2950 - RM3,050 level, i believe some of the plantation counters still can make huge profit.

Estimate Golden Agri 2011 EPS= SGD 0.08. Therefore, during negative sentiment, GAR  tend to trade at 7X PER and during good sentiment, its share price may trade up to 10X PER. ( Price range from SGD0.56-SGD0.80). Near term target price @ SGD0.72 based on 9X PER.

Good Luck!

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