HSBC starts Golden Agri-Resources (E5H.SG) at Overweight, sets target at $0.90, starts Indofood Agri Resources (5JS.SG) at Overweight with $3.38 target, Wilmar International (F34.SG) at Neutral with $7.01 target.
HSBC says structural, regulatory drivers mean house estimates 2011 demand growth for crude palm oil will be at decade high, with bottlenecks in expanding acreage, unfavourable weather pressuring supply ahead.
Singapore-listed Indofood Agri Resources (IFAR.SI) said on Friday third quarter net profit fell 18% year-on-year on the strengthening of the Indonesian rupiah and a smaller increase in the fair value of its biological assets.
Indofood Agri, Indonesia’s top cooking oil seller and a unit of giant noodle-maker Indofood Sukses Makmur (INDF.JK), also said it retained more crude palm oil for its own refinery instead of selling in the market, to lock in supplies.
Palm-oil suppliers: Crude palm oil for December delivery surged 6% in Kuala Lumpur yesterday to a 26-month high, tracking a rally in soybeans.
Here are some stocks to watch say Bloomberg and Thomson Reuters:
The following companies may have unusual price changes in trading today. Share prices are from the previous close. Singapore’s Straits Times Index dropped 0.4% to 2,995.06 on Aug 6. The market was closed yesterday for a holiday.
Palm oil suppliers: Crude palm oil for October delivery increased 2.6% in Kuala Lumpur yesterday, taking gains in the past four days to 6.6%.
Goldman Sachs trims Indofood Agri Resources (5JS.SG) target price to $2.90 from $3.15 after rolling forward valuation to FY11, cutting FY10-FY11 earnings estimates by 6.0%-8.0% to assume lower crude palm oil and sugar prices on back of reduced commodity prices, says Dow Jones.
Overall edible oil supply may continue to lag demand, helping push down stocks-to-usage ratios of all edible oils well into 2011, auguring well for crude palm oil (CPO) prices, says Deutsche Bank according to Dow Jones.
Shares on the measure trade at 15.2 times estimated earnings, compared with about 17.5 times at the start of 2010, according to data compiled by Bloomberg. The following shares were among the most active in the market.
Wakeford said with growth of palm oil demand seen outpacing supply, as the global economy recovers from the financial crisis, prices should be “well supported for next year”.
Kencana Agri, the Indonesian producer of crude palm oil, says it posted a 7% fall in revenue to US$33.9 million ($47.3 million) for third quarter (3Q2009) ended 30 September 2009 compared to US$36.5 million in 2Q2008.
Net profit after tax fell 75% to US$521,000 in 3Q09 from US$2.1 million in 3Q08.
The Straits Times Index gained 0.8% to 2,643.95 at the close. The following shares were among the most active in the market.
Indofood Agri Resources (IFAR SP), the palm oil unit of Indonesia’s biggest noodle maker, fell 1.2% to $1.60. Crude palm oil for November delivery dropped 7.3% in Kuala Lumpur last week. The contract fell as much as 3.3% today.
The Straits Times Index gained 0.8% to 2,643.95 at the close. The following shares were among the most active in the market.
Indofood Agri Resources (IFAR SP), the palm oil unit of Indonesia’s biggest noodle maker, fell 1.2% to $1.60. Crude palm oil for November delivery dropped 7.3% in Kuala Lumpur last week. The contract fell as much as 3.3% today.
