Singapore Stock Market News

ASEAN Plantations - Harvesting for value

StockFanatic
Publish date: Wed, 08 Oct 2014, 03:20 PM
StockFanatic
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Get set in young growth for the 2015 recovery
We think it is too early to turn positive on the ASEAN plantation sector. While average plantation share prices have fallen ~20% from May 2014 peaks, industry valuations are still close to midcycle PE's despite growth headwinds in 2015. We suggest investors revisit the young growth names (FR, BAL) who disappointed in 2014 but retain their strong growth platform. We also suggest investors position in stocks cheap vs history (GGR, SIMP) to participate in the 4Q14 CPO price rally.
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