The analysts note that Golden Agri expects downstream margins to normalise moving forward, as the tax levies have been reinstated. The company projects more normal margins of 4% to 6% in 2023.
Analysts at RHB Group Research and OCBC Investment Research (OIR) have maintained their “buy” calls on Golden Agri-Resources (SGX:E5H
) with higher target price and fair value estimate of 34 cents and 31 cents respectively, following the planter’s better-than-expected FY2022 results.
Boosted by downstream profits which saw 166% h-o-h jump in ebitda contributions, FY2022’s core earnings of US$1.008 billion ($1.35 billion) exceeded expectations at 120% and 132% of RHB’s and consensus’ bottomline. The higher contributions were driven by the tax levy holiday as well as strong fresh fruit bunches (FFB) growth.
