KUALA LUMPUR: CIMB Equities Research is keeping its earnings forecasts and target price for Genting PLANTATION []s at RM8.00, which is based on a forward P/E of 18 times.
It said on Thursday, Feb 25 that Genting Plantations's final net profit of RM236 million was in line, at 1% above its forecast and 3% above consensus.
Net profit declined 37% due to a 6% drop in FFB production and 21% drop in average price achieved to RM2,236.
There were no major surprises from the key divisions. However, the final dividend was better than expected at 5.25 sen, which brings the full-year dividend to 9 sen (2008: 10 sen), 1 sen higher than the research house's forecast.
"We are keeping our earnings forecasts and target price of RM8, which is based on a forward P/E of 18x. We continue to favour Genting Plantations for its attractive valuations and growth prospects in Indonesia where it is making good progress in new plantings. Factors that could catalyse the stock include higher CPO prices and potential M&As," it said