Meanwhile, in evaluating the acquisition, RHB Research said that given that brownfield plantation landbank of a decent age and good FFB yield is hard to come by, it added that the RM48,230 per ha implied value is reasonable.
The property landbank valuation of RM4.86 per sq ft is also in line with market valuations, the brokerage said, adding that while it expect earnings accretion to be minimal in the beginning (about 4-5% for FY17), the research house expect this to improve as the trees age and new areas come into maturity. There is no change to our sum-of-parts (SOP)-based RM26.40 (9% upside) and buy recommendation, it noted.
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