Kenanga lifts FGV's FY2014 core earnings
Kenanga Research has estimated Felda Global Ventures' core earnings to be two per cent higher to RM890 million for the 2014
financial year after assuming higher crude palm oil volume.
The higher CPO volume by 80,000 metric tonnes or six per cent to 1.38 million metric tonnes was the result of its acquisition of the entire equity stake in Pontian United Plantations.
The research house, however, said its 2013 financial year core earnings are maintained at RM605 million as the impact would only be felt after the fourth quarter of this year.
"Nevertheless, higher transportation cost in view of the recent rise in petrol and diesel prices would marginally nibble into earnings improvement, resulting in a small incremental forecast adjustment," Kenanga Research said in a note today.
The research house maintained its 'market perform' valuation on the stock, with a two per cent increase in the RM4.55 target price.-- Bernama