Singapore Stock Market News

Plantations - The sustainability angle

StockFanatic
Publish date: Mon, 25 Mar 2013, 01:13 PM
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Our scorecard for planters' progress on RSPO certification shows Sime in the vanguard and IOI in second place in terms of the ratio of acreage certified as at Jun 12. Among the Indonesian players, Golden Agri has made the most progress over the past year.

We expect the sustainability angle to remain one of the key investment considerations for some funds. As such, planters that are more successful in their sustainable efforts could over time fetch premium valuations relative to their peers, enabling them to attract a wider investor base. We maintain our Neutral call and our key picks of Wilmar and Indofood Agri.
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