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Rabu, 18 Mei 2011

Plantation sector: Lower limit of CPO export tax scheme is likely up to US$750 per ton (overweight) - Mandiri

􀂄 According to Tempo newspaper, Ministry of Trade said that they will increase the lower limit of CPO export tax scheme from US$700 per ton to US$750 per ton and decrease the highest rate of CPO export tax rate from 25%.

􀂄 At current average CPO price (CIF Rotterdam) of US$1,140 per ton in the last 30 days, this new CPO export tax scheme will not impact to net proceed of Indonesia CPO plantation companies.

􀂄 We maintain overweight recommendation on plantation sector with Sampoerna Agro (SGRO, Rp3,400, Buy, TP:Rp4,150) as our top pick due to its margin expansion. At Rp3,400, SGRO is trading at PER FY11F of 11.2x

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