- GGR moving forward with some positive development on the green front
- Keeping all our production and earnings estimates at the moment. Expect earnings of upstream plantation companies to register stronger profit margins and earnings in 4Q10, due to high CPO prices sustained in the quarter.
- However our valuation model indicates that GGR is fairly valued, and hence we maintain our Hold recommendation on the stock with a target price of S$0.74.
Some positive developments are taking place for Golden Agri-Resources Limited (GGR) as it announced on Wednesday its collaboration with the Government of Indonesia and Geneva-based non profit organization, The Forest Trust (TFT), in finding solution towards forest conservation.
A Forest Conservation Policy (FCP) has been developed by GGR and the main gist of the FCP is to have no development on High Carbon Stock (HCS) forests, High Conservation Value (HCV) forest areas and peat lands, to have respect for indigenous and local communities and to be in compliance with all relevant laws and Roundtable on Sustainable Palm Oil (RSPO) Principles and Criteria.
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