Notwithstanding Jaya Tiasa’s latest quarterly result, which was below expectations mainly due to seasonal factors, AmResearch believes that the further rerating is justified. The research house highlighted that this justification is based on the investment thesis of among others, the strong growth of its fresh fruit bunch (FFB) output – at 30 per cent to 866,000 tonnes in FY14F, by 20 per cent to breach one million tonnes in FY15F, and by another 10 per cent in FY16F. It further noted that other investment thesis included the prime mature areas will rise from just 12 per cent of total planted areas in FY13 to above 50 per cent by FY16F, which will significantly improve FFB production yield as well as OER.
Posted on: Tue, 27 May 2014 03:27:10 +0000
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