singapore commodity companies

Singapore Commodity

Companies Research

Olam International

Noble Group

Wilmar International

Golden Agri-Resources Ltd

Singapore listed commodities companies are set to become the rising stars of the exchange in 2011 and will become global players of significant importance.

Olam International Ltd, Wilmar International Ltd and Noble Group Ltd are most likely to lead the charge as the benefit from home grown markets in ASEAN, China and India, where the world's largest populations are consuming more and more of the world’s food supply.

Cash Flow is on the rise at Noble and Olam, both have successfully made the switch into production from trading, have been expanding ever since.

Olam is the world's largest supplier of cashews and sesame seeds, and is among the biggest sources of cocoa, rice, peanuts and cotton. It operates in 64 countries.

Noble is Asia's biggest supplier of raw materials. Only 22 percent of its revenue comes from agriculture, with the remainder coming from materials such as iron ore.

It has invested heavily in mines and processing.

Wilmar is Asia's leading agribusiness group and the world's largest integrated palm oil company.

Golden Agri-Resources Ltd is the world's second largest palm oil plantation with a total planted area of 435,000 hectares (including small holders) as at 30 September 2010, located in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat products.

Demand is expected to grow because of demand for biofuels, which is part of the reason the company bought the sugar and renewable energy businesses from Australia's CSR.

Paul Ebeling’s Outlook

The Cost of Clothing, Food, and Energy are on the Rise

Cotton prices are on the upswing and folks are going to feel it in their pockets sooner rather than later.

Cotton is now 80% more expensive than it was at the start of 2010 and many manufacturers believe they have no choice but to pass it on to the consumers.

It is reported that some folks are taking up Thrift Store shopping, hand me down or children’s clothing swapping (as it is called now), and Mothers are sewing again.

The USDA forecasts a 2% to 3% rise in the cost of all foods in Y 2011. Higher Corn and Soybean prices are the main force behind the increase. Farm animals have to be fed and when those costs go up, do the prices at the market. The big spike will be seen in dairy and meat, as Pork alone is forecast to rise between 3% and 4%. In Y 2008 food costs overall rose more than 5.5%.

A trend had taken hold as consumers sign up by the millions on sites that offer grocery coupons, and shop the weekly sales and Manager’s specials in the Super Markets. Meals are being planned, items to be purchased listed, and a new shopping commandment is: thou shalt not buy items on impulse. People that I know are planting vegetable and herb gardens, my friend CS fertilizes his Heirloom tomatoes and fruit trees with bio-Char and gets 3 seasons of wonderful produce. This all in his yard!

Shayne Heffernan and I here at HCM, along with the former President of Shell Oil, John Hofmeister, believe gasoline will be back to US$5 a gallon in the USA in Y 2010, it is almost there now in some locals.

That is US$2 more per gallon than the current average price in the USA of US$3.05 (Regular), according to the US Department of Energy.

The severe weather is partially to blame. The Winter in the USA and in Europe have created a higher-than-usual demand for heating fuels. Add to that the increased demand for fossil fuels in China and India, and the depreciation of the “Greenback” you can see Economics 101 at work first hand at the pump.

Demand determines the price, so use less spend less. Back to the Basic Conservation is the New Rule: Carpool, car share, combine errands, ride a bike, walk. At home, put on a sweater and keep your thermostat set low. Consider solar panels and absolutely seal any cracks or leaks around windows.

Shayne Heffernan’s Outlook

Around the world the consumption of vegetable oils is poised to exceed production for the first time in 17 years, draining inventories of cooking fats such as soy and palm and boosting prices already nearing records set during the 2008 food crisis.

ASEAN companies are the world’s leading suppliers of these oils making them very strong buys.

The United Nations’ World Food oils index surged to a 29-month high in December as vegetable-oil stockpiles fell. Heffernan Capital Management are estimating demand will exceed output this year for the first time since 1994.

Economic growth in China, India and Indonesia, with a combined 40 per cent of the global population, has spurred demand for cooking oils, as spreading wealth prompts the switch from grains to meat and higher spending on flavour-enhancing fats.

Edible oils represented 13 per cent of the calorie intake in developing Asia, according to a 2006 Asian Development Bank study. That was about half the proportion in the US.

India’s opposition plans a month of protests beginning January 20 over food inflation, echoing demonstrations across emerging markets when food prices surged in 2007 and 2008. Back then, three people died in a stampede in Chongqing, China, in November 2007 after a store began offering discounted cooking oil.

China, attempting to slow inflation, ordered four cooking oil suppliers including Wilmar International and COFCO not to lift product prices, the National Business Daily reported last month.

Heffernan Capital Management has upgraded the 2011 growth target for Palm Oil.

So far Palm oil has rallied 36 percent this year, headed for its second straight annual advance, on optimism that rising demand in China may strain global supplies curbed by rain and drought in producing nations.

Heavy rains caused by a La Nina weather event have reduced oil-palm yields in Indonesia and Malaysia, the top producers.

La Nina has also caused drought that curbed South American planting of soybeans, the rival edible oil, threatening global edible oil supplies and driving prices higher.

Malaysia’s production dropped 1 percent to 14.3 million tons in the first 10 months of the year, according to data from the nation’s palm oil board.

February-delivery futures rose as much as 1.3 percent to 3,640 ringgit, a 29-month high, and traded at 3,617 ringgit at 12:13 p.m. on the Malaysia Derivatives Exchange.

China, the biggest user of commodities, has pledged to control prices by cracking down on the use of bank credit to speculate in agricultural markets and by selling soybeans and vegetable oil from state reserves.

The biggest buyer of soybeans is expected to import 57 million tons in the year from Oct. 1, up 13 percent from a year ago, the U.S. Department of Agriculture data show.

Imports may exceed 14.2 million tons from October through December, up 4 million tons from a year earlier, Oil World said this week.

Chutinush Taksinapinunt’s Outlook

The world has moved a step closer to a food price shock after the US government surprised traders by cutting stock forecasts for key crops, sending Corn and Soybean prices to their highest level in 30 months.

The price jump comes after the UN’s Food and Agriculture Organisation warned last week that the world could see repetition of the 2008 food crisis if prices rose further. The trend is becoming a major concern in developing countries.

While officials are drawing comfort from stable rice prices, key for feeding Asia, they warn that a sustained period of high prices, especially in grains such as wheat, would hit poorer countries. Food price hikes have already led to riots in Algeria and Mozambique.

“Stocks of corn and soyabean are at incredibly tight levels, and the markets are surging to incredibly strong prices,” Chad Hart, agricultural economist at Iowa State University, said.

Agricultural traders and analysts warn that the latest revision to US and global stocks means there is no further room for weather problems. The crops in Argentina and Brazil, to be harvested soon, look fragile due to dryness.

Traders are particularly concerned about the cost of vegetable oil, key for developing countries such as China where an emerging middle class is buying more frying oil. The US Department of Agriculture said the ratio of Global stocks-to-demand would fall later this year to “levels unseen since the mid-1970’s, reflecting an accelerated pace of Vegetable Oil” consumption for food and fuel.

In Chicago, the price of soyabeans rose as much as 5.2% to $4.205 a bushel, the highest since late Y 2008. The USDA said that domestic stocks-to-demand would drop to the lowest point in nearly half a century.

Corn price rose 5% to 6.37 a bushel, the highest level since July 2008.

The USDA said that by August the ratio of US Corn stocks-to-demand would fall to a surprisingly thin 5.5%, the smallest cushion in 15 yrs.

The US is the world’s largest corn supplier, meeting more than half of global import needs. Corn is an important ingredient in animal feed, and the tightening market partly reflects stronger appetites for meat in emerging markets. Record ethanol production in the US will also swallow up nearly 40% of the US crop.

The boom in agricultural prices has lifted the outlook of the agribusiness sector in the US. Cargill, the World’s largest trader of food commodities, said its profits had tripled Y-Y during Q-2 of its F-Y.

Issaree Suwunnavid’s Outlook

Food prices hit a record high last month, surpassing the levels seen during the 2007-08 crisis, the UN’s Food and Agricultural Organisation said Wednesday.

The Rome-based organization said the increase did not constitute a crisis. But Abdolreza Abbassian, senior economist at the FAO, acknowledged that the situation was “alarming”. He added: “It will be foolish to assume this is the peak.”

The jump will increase fears about the repetition of the crisis of Y 2007-2008. However, poor countries have not so far seen the wave of food riots that rocked countries such as Haiti and Bangladesh 2 yrs ago, when prices of agricultural commodities jumped.

The increase in food costs will also hit developed economies, with companies from McDonald’s (NYSE:MCD) to Kraft (NYSE:KFT) raising retail prices.

Higher food prices are also boosting overall inflation, which is above the preferred targets of central banks in Europe.

The FAO said its food price index, a basket tracking the wholesale cost of commodities such as wheat, corn, rice, oilseeds, dairy products, sugar and meats, jumped last month of 214.7 pts.up almost 4.2% from November.

The FAO food index is at its highest since the measure was 1st calculated in Y 1990. During the Y 2007-08 food crisis, the index reached a peak of 213.5 in June 2008.

Olam International Olam International is a leading global supply chain manager of agricultural products and food ingredients. We are suppliers to the manufacturers of many of the world's internationally recognised brands, offering them reliability, consistency, trust, traceability and other value added services. This unique "total solutions" that we provide to our customers has earned us a global reputation as the "Brand behind the Brands".

Our distinctive position is based on our integration across the entire physical value chain from farms in the

producing countries to the factory gate in destination markets. As supply chain managers, we manage every stage of the product journey from farming, origination, primary processing and logistics, to secondary processing, marketing, distribution and customer delivery, managing the risks present at each stage. We operate today in over 60 countries, delivering 20 products to more than 11,100 customers. We employ over 10,000 people worldwide. We enjoy a leadership position in many of our businesses, including Cashew, Almond, Spices & Dehydrates, Sesame, Cocoa, Coffee, Rice, Cotton, Teak as well as Palm and Rubber in West Africa.

Listed on 11 February 2005 on the mainboard of the Singapore Exchange (SGX) (SGX: Olam; Bloomberg: OLAM SP; Reuters: OLAM.SI) with a market capitalisation of S$929.0 million, Olam is today a component stock of the Straits Times Index, MSCI Singapore Free Index, S&P Agribusiness Index and DAXglobal Agribusiness Index. Olam is the only Singapore company to be named in the 2009 lists for the Global Top Companies for Leaders and the Top Companies for Leaders in the Asia Pacific region by Hewitt Associates, the RBL Group and Fortune. It is also the only Singapore firm to be named in the 2009 and 2010 Forbes Asia Fabulous 50, an annual list of 50 big-cap and most profitable firms in the region.

HCM Target $8.00

Summary

Change -0.060 (-1.858%)

Bid 3.160 Ask 3.170 Open 3.250 High 3.250 Low 3.150 52-Week Range 3.41 - 2.18 Volume 13,118,000

1-Yr Return 18.845%

Earnings

Earnings

Fundamentals

Earnings 0.179 Shares (Millions) 2,125.806 Price/Earnings (Trailing) 17.238 Market Cap (Millions) 6,738.805 Relative P/E 1.336 ROE 25.514

Last Dividend Reported 0.025 Regular Cash

Dividend Yield (ttm) 1.420

Relative Dividend Yield 0.540

90-Day Volatility 29.634

Beta vs. FSSTI 1.115

Valuation Ratios

Company Industry Sector S&P 500

P/E Ratio (TTM) 19.53 35.50 22.67 18.20

P/E High - Last 5 Yrs. 44.82 6,098.84 1,545.75 49.63

P/E Low - Last 5 Yrs. 17.50 15.71 15.04 12.83

Beta 1.11 0.61 0.57 1.33

Price to Sales (TTM) 0.61 1.62 2.18 2.24

Price to Book (MRQ) 3.57 1.13 1.71 2.93

Price to Tangible Book (MRQ) 4.38 0.95 1.83 7.09

Price to Cash Flow (TTM) 15.25 16.07 14.34 10.90

Price to Free Cash Flow (TTM) -- 15.89 12.45 50.89

% Owned Institutions -- -- -- --

Dividends


Dividend Yield 1.39 1.70 1.81 1.54

Dividend Yield - 5 Year Avg. 1.17 1.50 1.27 2.53

Dividend 5 Year Growth Rate 16.25 7.67 8.81 -8.18

Payout Ratio(TTM) 24.56 44.65 24.68 37.34

Growth Rates


Sales (MRQ) vs Qtr. 1 Yr. Ago 30.24 12.72 8.70 9.40

Sales (TTM) vs TTM 1 Yr. Ago 26.69 10.83 6.80 9.22

Sales - 5 Yr. Growth Rate 25.95 9.87 11.38 9.59

EPS (MRQ) vs Qtr. 1 Yr. Ago 58.20 7.62 21.11 5.85

EPS (TTM) vs TTM 1 Yr. Ago 33.78 -- -- --

EPS - 5 Yr. Growth Rate 24.52 7.06 8.19 7.06

Capital Spending - 5 Yr. Growth Rate 47.73 8.38 9.38 4.62

Financial Strength


Quick Ratio (MRQ) 0.72 1.10 0.76 0.65

Current Ratio (MRQ) 1.47 1.64 1.07 0.96

LT Debt to Equity (MRQ) 114.45 29.04 25.69 122.10

Total Debt to Equity (MRQ) 254.08 41.32 35.30 180.83

Interest Coverage (TTM) -- 0.37 0.60 13.54

Noble Group

Noble Group Limited is an investment holding company. Its subsidiaries, jointly controlled entities and associates comprise managing the global supply chain of agricultural, industrial and energy products; ship ownership, chartering and the provision of technical ship management services; trade finance; coal mining, soybean and sugar cane crushing activities and ethanol production.

It has two segments: Agriculture, which includes grain, coffee, cocoa, cotton, sugar and fertilizer product divisions; Energy, which includes coal and coke, oil and gas (which includes ethanol), petrochemical (which includes polymers), and carbon credits product divisions; metals, minerals and ores, which includes iron ore, ferro alloys/manganese ore/chrome ore, alumina/aluminum and steel products product divisions, and logistics, which comprises vessel chartering, vessel ownership and vessel management. On June 16, 2009, it acquired a further 66% interest in Gloucester Coal Limited.

HCM Target $4.80

Summary

Change -0.020 (-0.855%)

Bid 2.320

Ask 2.330

Open 2.360

High 2.360

Low 2.320

52-Week Range 2.40 - 1.54

Volume 12,954,000

1-Yr Return 11.593%

Earnings

Earnings

Fundamentals

Earnings 0.106 Shares (Millions) 6,030.026

Price/Earnings (Trailing) 24.021 Market Cap (Millions) 13,989.660

Relative P/E 1.863 ROE 23.135

Last Dividend Reported 0.023 Regular Cash





Valuation Ratios


P/E Ratio (TTM) 25.28 13.98 27.04 18.20

P/E High - Last 5 Yrs. 16.94 22.40 68.65 49.63

P/E Low - Last 5 Yrs. 4.09 8.09 14.22 12.83

Beta 1.19 1.25 1.15 1.33


Price to Book (MRQ) 3.36 2.80 1.52 2.93




Dividends


Dividend Yield 2.14 1.49 1.26 1.54


Dividend 5 Year Growth Rate 4.29 19.28 8.84 -8.18

Payout Ratio(TTM) 32.99 13.71 31.51 37.34

Growth Rates





EPS (MRQ) vs Qtr. 1 Yr. Ago 2.51 154.62 176.08 5.85

EPS (TTM) vs TTM 1 Yr. Ago -39.22 -- -- --

EPS - 5 Yr. Growth Rate 9.65 17.78 10.21 7.06


Wilmar International

Wilmar International Limited, founded in 1991, is Asia’s leading agribusiness group. They are amongst the largest listed companies by market capitalisation on the Singapore Exchange.

The business activities include oil palm cultivation, oilseeds crushing, edible oils refining, consumer pack edible oils processing and merchandising, specialty fats, oleochemicals and biodiesel manufacturing, and grains processing and merchandising. Headquartered in Singapore, operations are located in more than 20 countries across four continents, with a primary focus on Indonesia, Malaysia, China, India and Europe. Supported by a multi-national staff force of more than 80,000 people, over 300 processing plants and an extensive distribution network, Wilmar products are sold to more than 50 countries globally.

Wilmar are today:

• the largest global processor and merchandiser of palm and lauric oils; • one of the largest plantation companies in Indonesia/Malaysia; • the largest palm biodiesel manufacturer in the world; • a leading consumer pack edible oils producer, oilseeds crusher, edible oils refiner,

specialty fats and oleochemicals manufacturer in China; • one of the largest edible oils refiners and a leading producer of consumer pack edible oils

in India; • the largest edible oils refiner in Ukraine; and • the leading importer of edible oils into East Africa and one of the largest importers of

edible oils into South-east Africa.

HCM Target $9.75

Summary

Change -0.040 (-0.701%)

Bid 5.670

Ask 5.680

Open 5.710

High 5.720

Low 5.660

52-Week Range 7.12 - 5.25

Volume 4,169,000

1-Yr Return -19.249%

Earnings

Earnings

Fundamentals

Earnings 0.295 Shares (Millions) 6,396.925

Price/Earnings (Trailing) 19.349 Market Cap (Millions) 36,270.570

Relative P/E 1.500 ROE 18.328

Last Dividend Reported 0.032 Interim





Valuation Ratios


P/E Ratio (TTM) 19.86 35.50 22.67 18.20

P/E High - Last 5 Yrs. 29.22 6,098.84 1,545.75 49.63

P/E Low - Last 5 Yrs. 8.23 15.71 15.04 12.83

Beta 1.27 0.61 0.57 1.33


Price to Book (MRQ) 2.46 1.13 1.71 2.93




% Owned Institutions -- -- -- --

Dividends


Dividend Yield 1.44 1.70 1.81 1.54


Dividend 5 Year Growth Rate -- 7.67 8.81 -8.18

Payout Ratio(TTM) 32.18 44.65 24.68 37.34

Growth Rates





EPS (MRQ) vs Qtr. 1 Yr. Ago -60.28 7.62 21.11 5.85

EPS (TTM) vs TTM 1 Yr. Ago -19.22 -- -- --

EPS - 5 Yr. Growth Rate -- 7.06 8.19 7.06


Golden Agri-Resources Ltd

Date: 28/12/2010

Symbol: E5H

Exchange: SGX

Sector: Agriculture

Recommendation:

Target Price: 1.50

Current Price: 0.775

Summary

• Very strong growth in Asia including

China

• Palm Oil Prices are outperforming

expectations

• Increased capacity and distribution

• First nine months 2010 EBITDA increased by 56% to US$424 million

• Net profit grew by 89% to US$254 million year-on-year

Fundamental Data

Beta: 1.47

Market Cap (Mil.):

$9,711.02

Shares Outstanding (Mil.):

12,138.68

Yield (%): 0.62

PE 10.3

Golden Agri-Resources Ltd is the world's second largest palm oil plantation with a total planted area of

435,000 hectares (including small holders) as at 30 September 2010, located in Indonesia. It has

integrated operations focused on the production of palm-based edible oil and fat products.

Founded in 1996, GAR is listed on the Singapore

Exchange since 1999 with a market capitalisation of

US$5 billion as at 30 September 2010. Flambo

International Ltd, an investment company, is GAR’s

largest shareholder, with a 49% stake in the company.

GAR has several subsidiaries, including PT SMART Tbk

(“SMART”) and PT Ivo Mas Tunggal. SMART listed its

shares on the Indonesia Stock Exchange in 1992.

GAR is focused on sustainable palm oil production. Its

primary activities include cultivating and harvesting of

oil palm trees; processing of fresh fruit bunch into

crude palm oil ("CPO") and palm kernel; and refining

CPO into value-added products such as cooking oil, margarine and shortening. Through its subsidiaries,

GAR operates 36 palm oil processing mills, four refineries and six kernel crushing plants. It also has an

integrated operation in China including a deep sea port, oilseed crushing plants, production capabilities

for refined edible oil products as well as other food products such as noodles.

Seedlings: Good quality seeds are crucial for the long-term productivity of our plantations. One of our

subsidiaries, PT Ivo Mas Tunggal, has a strategic partnership with Dami Australia Pty Ltd, to produce high

yielding seeds originating from Papua New Guinea, through its joint venture company, PT Dami Mas

Sejahtera. The production capacity of this company can support our plantation expansion plan.

Plantations: We cultivate oil palm plantations with a total area of approximately 435,000 hectares

(including plasma) with an annual fresh fruit bunches yield of 23.1 tonnes per hectare in 2009. Our

nucleus plantations comprise 79 percent of total hectarage.

Extraction: Our mills extract crude palm oil and palm kernel from the fresh fruit bunches, with a

combined capacity of 9,270,000 tonnes per annum.

Refining: The crude palm oil is processed in our own refineries, which have a total capacity of 1,380,000

tonnes per annum, producing both value-added and generic refined products.

Kernel Crushing: Our kernel crushing plants have a combined capacity of 549,000 tonnes per annum,

producing higher value palm kernel oil and palm kernel meal.

Marketing: As a 'One Stop Supplier', we distribute and market our products for both local and export

markets. We produce two of Indonesia's leading brands of cooking oil - Filma and Kunci Mas.

Leading edge proprietary IT systems: Our proprietary SAP system, which was 10 years in the making,

harnesses technology that puts us in the forefront of precision agriculture. GAR is now fully equipped

with a state-of-the-art system, which serves as a one-stop multi-function monitoring and management

control system for our entire plantation and downstream operations. With this capability, our

operational management has the latest updates at their fingertips.

In-house R&D facilities: Our research and development facilities reside with us through our subsidiary PT

SMART Tbk. Known as the SMART Research Institute, the facilities are based in Riau. This institute

undertakes the full range of research in agronomic activites, including fertiliser optimisation and soil

viability, among others. The institute collaborates with both national and international research houses

and academic institutions including the renowned Centre de Coopération Internationale en Recherche

Agronomique pour le Développment in France.

Business Activities in China Include:

Deep sea port and storage facility: We have secured the last deep sea port site strategically located in

Eastern China along with the storage facility. The port is equipped with high-speed Buhler mechanical

and pneumatic bulk grain unloaders that can operate at design rates of 1,250 tonnes per hour.

Crushing: We own domestic crushing facilities that allow us to import soybean and process it

domestically. The crushing plant is located in Ningbo with capacity of 1,002,000 tonnes per annum.

Refining: Our refineries in Ningbo and Zhuhai have total capacity of 380,000 tonnes per annum. We also

have a new margarine and shortening plant with capacity of 33,000 tonnes per annum.

Sales and distribution network: Most of our products are sold in China's domestic market. We have set up

sales representative and liaison offices and collaborate with leading distributors.

Singapore, 11 November 2010 - Golden Agri-Resources Ltd and its subsidiaries (“GAR” or the “Company”) recorded an outstanding growth for the first nine months 2010 (“9M 2010”) with a 40% year-on-year increase in revenue to US$2.3 billion. EBITDA for the period increased by 56% to US$424 million compared to US$272 million achieved for the same period last year.

The strong growth was supported by a 28% increase in average CPO market price (FOB) from US$615 per tonne during 9M 2009 to US$790 per tonne during 9M 2010. This contributed to the increase in 9M 2010 net profit to US$254 million from US$134 million in the same period last year, despite weaker production performance in 2010. 3Q 2010 EBITDA and net profit also showed year-on-year growth of 32% and 41%, respectively, supported by a 31% increase in CPO market price (FOB).

Strong Brands in Asia

From integrated palm oil facilities, they produce bulk products, such as crude palm oil, palm kernel, palm kernel oil, palm kernel meal, olein, stearin, cocoa butter substitute, soybean oil and soybean meal.

Golden Agri also produce a full range of refined branded products, such as cooking oil, margarine, butter oil substitute, shortening and fats for end-customers, restaurants, hotels, cafés and industrial markets.

COOKING

OIL Filma® Kunci Mas® BissOil

BUTTER OIL

SUBSTITUTE Palmboom® B.O.S Palmvita® Gold B.O.S V38

SPECIALTY FATS Delicio® Coating Fat Delicio® Toffee Fat Delicio® White Delicoa 38® CBS

MARGARINE Filma® Menara® Mitra® Palmboom® Palmvita® Pusaka®

SHORTENING Delicio® White Fat Palmvita® White Fat Palmvita® Baker's Fat Palmvita® Gold Creaming Fat Menara® Baker's Fat Mitra® Baker's Fat Pusaka® White Baker's Fat

FRYING FAT Good Fry®

COOKING OIL Grand Slam

(大满贯)

Red Rose (红玫瑰)

Flagship (旗舰)

Better life

(贝特力)

Master Chef

(厨神)

MARGARINE, SHORTENING &

BUTTER OIL SUBSTITUTE

Golden Carrier (金舰)

Flagship (旗舰)

Seagull (海鸥)

Golden Seagull (金鸥)

2009 2008 2007 2006

Consolidated Income Statement

(US$ '000)

Net revenue 2,293,69 2,985,948 1,873,352 1,129,587

Gross profit 509,430 876,117

Profit from operations 617,735 1,986,316 1,757,968 777,556

Profit before income tax 593,146 1,947,060 1,802,945 740,583

EBITDA(1) 401,088 597,230 534,663 215,029

Net profit attributable to equity holders

606,962 1,382,526 1,164,792 470,533

Weighted average number of shares (million shares)*

11,558 11,067 10,585 9,623

Earning per share (USD cents)# 5.25 12.49 11.00 4.89

Profit from operations per share (USD cents)#

5.34 17.95 16.61 8.08

Consolidated Balance Sheet

(US$ '000)

Total assets 7,900,480 6,825,507 5,012,814 2,985,362

Total current assets 1,105,699 707,481 763,817 424,000

Total current liabilities 724,272 547,989 517,790 347,916

Total long-term liabilities 1,642,453 1,570,688 1,113,814 716,150

Minority interests 96,062 93,104 78,644 216,424

Equity attributable to equity holders 5,437,693 4,613,726 3,302,566 1,704,872

Ratio

Sales growth -23.2% 59.4% 65.8% 37.9%

Gross profit growth -41.9% 33.1% 144.0% 34.7%

Operating profit growth -68.9 13.0% 126.1% 127.5%

Pre-tax profit growth -69.5% 8.0% 143.4% 119.3%

EBITDA growth -32.8% 11.7% 148.6% 32.3%

Net profit growth (2) -56.1% 18.7% 147.5% 101.8%

Gross profit margin 22.2% 29.3% 35.1% 23.9%

Operating profit margin 26.9% 66.5% 93.8% 68.8%

EBITDA margin 17.5% 20.0% 28.5% 19.0%

Net profit margin (2) 26.5% 46.3% 62.2% 41.7%

Return on equity 11.2% 30.0% 35.3% 27.6%

Return on assets 7.7% 20.3% 23.2% 15.8%

Current ratio 1.53 1.29 1.48 1.22

Net debt to equity (3) 0.06 0.09 0.10 0.20

Receivable turnover (days) (4) 19 16 16 15

Inventory turnover (days) (5) 68 48 68 61

Other Information

Average CPO Price - FOB Belawan (US$ per tonne)

632 872 716 416

Remarks:

(1) EBITDA = earnings before tax, minority interests, interest on borrowings, depreciation, and

amortisation, net gain from changes in fair value of biological assets, foreign exchange gain or loss,

exceptional items and share of results of associated companies

(2) net profit = net profit attributable to equity holders

(3) net debt to equity = (total borrowings - cash and cash equivalents - short-term investments) / equity

attributable to equity holders

(4) receivable turnover = average trade receivables / net revenue * 365

(5) inventory turnover = average inventory / cost of sales * 365

Contact Detail:

Chutinush Taksinapinunt

Business Development Director

Heffernan Capital Management

Email: [email protected]

Chutinush Taksinapinunt holds a Bachelor of Business Administrators degree Majoring in Finance and Banking. Chutinush Taksinapinunt is an experienced market maker and Portfolio Manager, having worked with some of Thailand’s largest Securities Company and Financial Institutions.

Price Estimate by Shayne Heffernan PhD

Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com

Bangkok

Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND Tel: +66 2 126 8000 Fax: +66 2 126 8080

New York

347 5th Avenue, Suite 1402-508 Ny, NY 10016 Tel: +1 646-403-9881 Fax: +1 646-403-8014

Singapore

3 Raffles Place #07-01 Bharat Building Singapore 048617 Tel: +65 6329 6408Fax: +65 6329 9699

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Ebeling Heffernan (EH) distributes research and other information purchased and compiled from outside sources and analysts. This

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