Still undervalued. Recent oil palm estates transactions in East Malaysia
went for as high as RM80,580/ha, yet SOP commands approximately half
that value despite recent share price run up (+13% since our initiation
on 2 Aug). The scarcity of investable assets and undervaluation offer an
interesting M&A angle, in our view. Share price should receive
further lift driven by its irresistible 2011 single digit valuation and
our projected 16% FFB output CAGR (2010-13). Reiterate Buy and RM6.48 TP
(13x 2013 PER).
Maybank research (2 December 2011)
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