Golden Agri Resources - RHB Invest 2023-08-15: 1H23 Held Up By Downstream Division; Keep BUY

• We consider Golden Agri-Resources’s 1H23 earnings to be largely in line, as we expect earnings to improve in 2H23 on higher productivity and lower fertiliser costs. Maintain BUY, with new SOP-derived S$0.28 target price from S$0.29, 14% upside and ~3% FY24F yield.
• - Read this at SGinvestors.io -

1H23 core net profit down 57.1% y-o-y

• Golden Agri-Resources (SGX:E5H) recorded US$155m (-57.1% y-o-y) in core net profit for 1H23, which we consider to be largely in line with our and consensus expectations at 41- 42% of FY23F.
• Golden Agri-Resources did not declare a dividend in 1H23 (1H22: 0.8 cents)
• - Read this at SGinvestors.io -
• Although Golden Agri-Resources saw strong output pick up in July and August, it is revising its FFB growth guidance for FY23 to -3% y-o-y. As such, we bring down our FFB growth projections to -5% for FY23 (from 0%), but keep our 2% growth assumptions for FY24-25.

Inventory build-up in 2Q23.

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2023-08-15 SGinvestors.io

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