STOCKS NEWS SINGAPORE-Golden Agri falls after weak Q4 results
Shares of Golden Agri-Resources fell to a five-week low after the palm oil producer reported a 93 percent drop in fourth-quarter net profit mainly due to weaker crude palm oil prices.
Golden Agri shares fell as much as 4.6 percent to S$0.62, with nearly 68 million shares traded, 1.3 times the average full-day volume over the past 30 days.
OCBC Investment Research cut its target price to S$0.63 from S$0.65 and kept its 'hold' rating, after lowering its margin assumptions and cutting its core earnings forecast by 18 percent for 2013 fiscal year.
Nomura said Golden Agri's midstream and downstream activities in China posted a full-year loss due to downward pressure on end-consumer prices and higher costs of soybean feedstock.
Nomura sees a lack of a clear plan to mitigate these losses, no signs of any change in the regulatory stance in China on end-consumer vegetable oil prices and a support for soybean prices.
Therefore, a return to previous EBITDA (earnings before interest, taxes, depreciation, and amortization) levels in China may be "too optimistic", Nomura said.
- U.S.'s Kerry expresses regret to India over diplomat case |
- Mega Millions winners in Georgia, California to split $648 million |
- China confirms near miss with U.S. ship in South China Sea
- Washington, DC city council raises minimum wage to $11.50/hr in 2016
- Target stores' customers hit by major credit card attack