IJM Plantations nine-month results below expectations

TheEdge Thu, Feb 28, 2019 11:06am - 5 years View Original


IJM Plantations Bhd
(Feb 27, RM1.74)
Maintain sell with a target price (TP) of RM1.20:
After stripping out a gain in foreign exchange (forex), a gain in financial derivatives instrument and forex losses on foreign borrowings, we derived a core net loss of RM15.6 million, widening from a net loss of RM5.8 million in last quarter and net profit of RM17 million a year ago.

The quarter-on-quarter performance was dented by lower crude palm oil (CPO) prices in both Malaysian and Indonesian operations amid slower fresh fruit bunch production in its Indonesia operation.

Meanwhile, year-on-year was eroded by lower CPO and palm kernel prices in both Malaysian and Indonesian operations.

Nine-month financial year 2019 registered a core net loss of RM13.4 million, which was substantially below our and market expectations’ net profit of RM48.8 million and RM5.2 million respectively, given higher-than-expected interest cost and forex losses, albeit lower commodity prices. — JF Apex Securities, Feb 27

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

2216 0.000
APEX 1.020

Comments

Login to comment.