Monday, October 27, 2014

PT BW Plantation Tbk - Massive Rights Issue Plan

BWPT’s plan to acquire Green Eagle Holding (GEH) is considered expensive while in the long-run it will increase economies of scale. Meanwhile, BWPT 1H14 performance was relatively in-line with our estimates, with 36.3% yoy growth in sales and bottom line profit growth at 67.3% yoy. Due to the dilutive impact of the right issue price we downgrade our TP to Rp560 HOLD.

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