MARKET DEVELOPMENT
MIDF Research, RHB Research Maintain 'Buy' Call On FGV
MIDF Research, RHB Research Maintain 'Buy' Call On FGV
30/11/2013 (Bernama) - MIDF Research and RHB Research have both maintained a "buy" call on Felda Global Ventures Holdings Bhd (FGV).
In their respective research notes today, MIDF Research's target price is unchanged at RM5.20 per share, while for RHB Research it is RM4.90.
MIDF Research said although FGV's nine months revenue of 2013 dropped 1.5 per cent year-on-year, mainly due to lower average crude palm oil (CPO) and fresh fruit bunches (FFB) prices realised, it was partly offset by higher FFB production.
Recent acquisitions made by FGV, namely PT Temila Agro Abadi, PT Landak Bhakti Palma, Pontian United Plantations Bhd and the remaining stake in Felda Holding Bhd, are expected to increase acreage, improve the tree age profile and consequently higher earnings moving forward.
RHB Research meanwhile, believes financial year 2014 would be a better for FGV, especially upon completion of its acquisition of a 51 per cent stake Felda Holdings.
"This could add an estimated five per cent to 10 per cent to earnings and allow FGV to improve its operational efficiencies," it added.
Kenanga Research, meanwhile, maintained a "market perform" call on FGV with target price of RM4.55, and HwangDBS maintained a "hold" rating with target price of RM4.60.
Alliance Research maintained its "neutral" recommendation on FGV ahead of the consolidation of Felda Holdings as a subsidiary by the first quarter of next year.
In their respective research notes today, MIDF Research's target price is unchanged at RM5.20 per share, while for RHB Research it is RM4.90.
MIDF Research said although FGV's nine months revenue of 2013 dropped 1.5 per cent year-on-year, mainly due to lower average crude palm oil (CPO) and fresh fruit bunches (FFB) prices realised, it was partly offset by higher FFB production.
Recent acquisitions made by FGV, namely PT Temila Agro Abadi, PT Landak Bhakti Palma, Pontian United Plantations Bhd and the remaining stake in Felda Holding Bhd, are expected to increase acreage, improve the tree age profile and consequently higher earnings moving forward.
RHB Research meanwhile, believes financial year 2014 would be a better for FGV, especially upon completion of its acquisition of a 51 per cent stake Felda Holdings.
"This could add an estimated five per cent to 10 per cent to earnings and allow FGV to improve its operational efficiencies," it added.
Kenanga Research, meanwhile, maintained a "market perform" call on FGV with target price of RM4.55, and HwangDBS maintained a "hold" rating with target price of RM4.60.
Alliance Research maintained its "neutral" recommendation on FGV ahead of the consolidation of Felda Holdings as a subsidiary by the first quarter of next year.