HLIB upbeats with Boustead Plantations

Publish date: Wed, 04 Jun 2014, 11:28 AM
KUALA LUMPUR: Hong Leong Investment Bank (HLIB) expects Boustead Plantations Bhd's (BPB) core net profit to jump 74.7 per cent to RM119.9 million this year on higher average crude palm oil (CPO) price assumption of RM2,700 per metric tonne.
Last year, the average price was stood at RM2,353 per metric tonne.
HLIB also expects BPB's core net profit in 2015 to remain flattish at RM116.4 million, largely on the back of a slightly higher production cost assumption.
"We project BPB to pay dividend per share of 4.5 sen, equivalent to 60 per cent of our 2014 projected core net profit, and this translates into a dividend yield of 2.8 per cent," it said in a note today.
HLIB said it has a long-term positive outlook on BPB's oil palm plantation sector and its 246.8 hectares of land bank in Balau estate has the potential to be developed into a property township, given its close proximity to the Semenyih town centre.
It added that BPB's replanting programme, coupled with the use of new planting materials would improve the company's overall yield over the longer term.
The research firm valued BPB at RM1.63 per share, based on sum-of-parts valuation.-- Bernama
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Mariyappan Munian Pappan

counter to watch.... believe good dividend stock

2014-06-04 21:59

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