Thursday, August 25, 2011

Genting Plantations shares up on strong earnings growth

KUALA LUMPUR: Genting PLANTATION []s Bhd shares advanced on Thursday, Aug 25 after its net profit for the second quarter ended June 30, 2011 surged 96% to RM139.9 million from RM71.38 million a year earlier, due mainly to higher palm products prices and increased FFB production.

At 10.45am, Genting Plantations rose four sen to RM7.08.

Genting Plantations declared a gross interim dividend of 4.25 sen per share of 50 sen each to be paid on Oct 18.

It said on Wednesday, Aug 24 that revenue for the quarter rose 57.6% to RM364.38 million from RM231.17 million in 2010. Earnings per share rose to 18.44 sen from 9.41 sen, while net assets per share was RM4.03.

OSK Research upgraded Genting Plantations from Neutral to Buy with fair value tweaked down to RM7.87.

The research house said on Aug 25 that production growth had been stronger than expected prompting management to guide up on targeted growth this year to 8 ' 9%.

'With its Indonesia estates starting to hit maturity this year, we believe Genting Plant will continue to show respectable growth in the next 5 years.

'The company is also the second biggest landowner in Iskandar Development Region in Johor and the launch of its premier outlet in November should boost land value,' it said.

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