Sri Trang Agro-Industry

MONDAY, NOVEMBER 14, 2011
Sri Trang Agro-Industry

Stretched in Q3 Trading - maintained Share price Bt 18.10; target prices: Bt 27.63

Sri Trang Agro-Industry Plc 
Results for 9M11 disappointed due to weak demand in the US and EU and the down trending natural rubber price. However, we believe a recovery in FY12 is on hand with higher utilisation rates and gross margins returning to STA’s average. 9M11 core net profit was only 41.7% of our forecast and 41.2% of consensus estimates. We lower our FY11-13 EPS forecasts and SOP based target price after rolling over to end CY12. However, valuations are undemanding and STA remains a TRADING BUY.