AffinHwang Capital upgrades IJM Plantation to Buy, trims target price to RM3.80

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KUALA LUMPUR (May 27): AffinHwang Capital Research has upgraded IJM Plantations Bhd (IJMP) to “Buy” (from Hold) at RM3.49 with a lower target price of RM3.80 (from RM3.88) and said IJMP posted a pretax loss in 4QFY15 and a lower pretax profit in FY15 mainly due to lower sales volume and unrealised forex loss.

In a note today, the research house said stripped of the forex losses and other one-off items, core net profit amounted to RM127.6 million, driven by superior FFB production growth from its Indonesian operations.

“FY16E-17E forecasts are cut slightly and target price is trimmed to RM3.80.

“At current price and with a potential total return of 11.8%, rating for IJMP is upgraded from Hold to Buy,” it said.