Thursday, October 28, 2010

AmResearch keeps Buy on IJM Plantations, ups FV to RM3.20

KUALA LUMPUR: AmResearch is keeping its BUY??on IJM PLANTATION []S BHD [] with an increased fair value of RM3.20/share to account for a higher CPO price assumption.

???We like IJM Plantations for its pure exposure to CPO prices. We estimate that for every RM100/tonne change in CPO price, IJM Plantation???s net profit would improve by 3% to 4%,??? it said on Thursday, Oct 28.

AmResearch assumed an unchanged PE of 17 times on IJM Plantations??? FY12F basic EPS. Its PE-multiple assumption??is within IJM P???s four-year historical PE band of 6 times to 28 times. The group???s average PE was 19 times for the past four years.


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