Indofood Agri Resources Ltd's (IndoAgri) on Wednesday said its net profit registered a year on year increase of 22 per cent to 257.86 billion rupiah (S$32.71 million) for the third quarter ended Sept 30, 2012.

Turnover for the quarter gained 7.9 per cent to 3.54 trillion rupiah due to higher sales of palm and sugar products.

Earnings per share gained 22.6 per cent from 146 rupiah to 179 rupiah.

The group says palm oil consumption growth from emerging economies like India and China will continue in the long term. It also expects its home country Indonesia to sustain domestic demand growth for palm oil products.

IndoAgri (Unrated, S$1.27)  is now trading at 10.7x historical PE. There are currently 14 Buy, 5 Hold and 2 Sell ratings on the stock.

Source: AmFraser