KUALA LUMPUR (Jan 26): RHB Research Institute is maintaining its forecast for SIME DARBY BHD [] which said it was investing US$4.356 million (RM13.5 million) for a 95% stake in PT Indo Sukses Lestari Makmur (PTIS) in Indonesia.
PTIS develops industrial PLANTATION [] forest and rubber tapping. PTIS is in the process of obtaining the timber forest product exploitation business license from the Ministry of Forestry for about 10,000 ha of concession area.
The research house said on Thursday it was “slightly puzzled by this acquisition”, as the management had not really emphasised its intention to expand into the timber and rubber industries.
RHB Research also said there are no details on the concession and land use for it to assess the landbank pricing of US$435.60/ha (RM1,350/ha).
“No change to our forecasts as the investment amount is minimal, while development cost would be spread out over 15 years. Fair value remains at RM10.40. Maintain Outperform,” it said.
PTIS develops industrial PLANTATION [] forest and rubber tapping. PTIS is in the process of obtaining the timber forest product exploitation business license from the Ministry of Forestry for about 10,000 ha of concession area.
The research house said on Thursday it was “slightly puzzled by this acquisition”, as the management had not really emphasised its intention to expand into the timber and rubber industries.
RHB Research also said there are no details on the concession and land use for it to assess the landbank pricing of US$435.60/ha (RM1,350/ha).
“No change to our forecasts as the investment amount is minimal, while development cost would be spread out over 15 years. Fair value remains at RM10.40. Maintain Outperform,” it said.
