HSPLANT (5138) : AffinHwang Capital maintains Reduce on Hap Seng Plantation, lowers target price to RM2.45
KUALA LUMPUR (Nov 13): AffinHwang Capital Bhd has maintained its Reduce rating on Hap Seng Plantations Bhd at RM2.60 with a lower target price of RM2.45 (from RM2.54) and said Hap Seng’s full year FY14 was likely to be below house expectation as cost was higher while own FFB production was likely to be lower.
In a note Thursday, the research house said Hap Seng’s FY14-16 core net profit forecasts are cut by 3%-10% and target price lowered to RM2.45.
“Maintain Reduce. Hap Seng still does not offer superior FFB production growth but dividend yield is expected to remain good.
“Dividend yield however remains good. Key risks include (i) stronger global economic recovery; (ii) lower-than-expected soybean and palm oil production; (iii) occurrence of extreme weather conditions; and (iv) changes in policies (including biofuel mandates),” it said.
http://www.theedgemarkets.com/en/node/169505
KUALA LUMPUR (Nov 13): AffinHwang Capital Bhd has maintained its Reduce rating on Hap Seng Plantations Bhd at RM2.60 with a lower target price of RM2.45 (from RM2.54) and said Hap Seng’s full year FY14 was likely to be below house expectation as cost was higher while own FFB production was likely to be lower.
In a note Thursday, the research house said Hap Seng’s FY14-16 core net profit forecasts are cut by 3%-10% and target price lowered to RM2.45.
“Maintain Reduce. Hap Seng still does not offer superior FFB production growth but dividend yield is expected to remain good.
“Dividend yield however remains good. Key risks include (i) stronger global economic recovery; (ii) lower-than-expected soybean and palm oil production; (iii) occurrence of extreme weather conditions; and (iv) changes in policies (including biofuel mandates),” it said.
http://www.theedgemarkets.com/en/node/169505
