Neutral near term impact. GENP's exercise to secure ~74,000 ha of land comes with a hefty premium amidst growing scarcity of strategic land in Indonesia. The exercise will expand its immediate planted land bank by 14,150 ha (+15%), and double its plantable reserves in Indonesia to ~100,000 ha. Earnings impact is neutral in 2012-13. We however raise our 2012-14 net profit forecasts for GENP by 13-19.5% p.a. post revision to our CPO ASP forecast. Still, GENP remains a Hold with our revised TP of RM9.10 (+12%) on unchanged 14.5x 2013 PER.

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Source: Maybank Research - 16 April 2012