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
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
Therefore, a return to previous EBITDA (earnings before
interest, taxes, depreciation, and amortization) levels in China
may be "too optimistic", Nomura said.