Sri Trang Agro-Industry

[winston]

Not vested

Sri Trang Agro-Industry shares fall 5 pct in Bangkok

BANGKOK, Jan 31 (Reuters) - Shares in Thailand's Sri Trang Agro-Industry , the world's biggest rubber producer and exporter, fell 5 percent on Monday on the Thai stock exchange.

At 0308 GMT, the shares were down 4.3 percent at 33.50 baht ($1.08), having fallen 5 percent shortly after the opening bell.

Its newly listed stock in Singapore opened at S$1.15 or about 4.2 percent below the IPO price of S$1.20, which was roughly equivalent to 29 baht. [ID:nL3E7CV01G] At 0310 GMT they had risen to S$1.23.


Source: Reuters

[winston]

Vested

Sri Trang Ago‐Industry Public Co. Ltd (STA SP, $1.28, NOT RATED) – Sri Trang (STA) is one of the world’s largest natural rubber processor that has recently been listed on the SGX.

The Thai company’s shares have been listed on the SET since Aug 1991. As the shares are fully fungible, STA is a definitely a playground for arbitrageurs.

Its shares trade at an undemanding forward PER of 9x.

http://www.kimengresearch.com/KimEng/se ... yqVQTZ10M=

[LenaHuat]

I mustn't lose track of this ticker. Jap tyre manufacturers are raising prices steeply.

[winston]

Vested

Rev 82%
profit 68%

The global demand for natural rubber is dominated by the tyre industry. This demand is heavily influenced by GDP growth, both for the tyres fitted to new vehicles and those being replaced on existing vehicles.

The global tyre industry is expected to be anchored by the strong growth in the global automotive industry, particularly in countries like the PRC, India, and the ASEAN and South America regions.

Going forward, global sales of light vehicles tyres and medium and heavy commercial vehicle tyres are expected to increase.

As for the glove industry, demand is expected to be stable given its dependency on the global healthcare sector rather than global GDP growth and is expected to increase, particularly in emerging market economies, given healthcare expenditures have been rising.

The global demand for natural rubber has been growing for the past two decades and this trend is likely to continue. The supply is also currently increasing due to improving demand.

Nevertheless, the rubber industry is expected to face a supply deficit till 2012 which is likely to result in a strong pricing environment.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[winston]

Not vested

We initiate coverage of Sri Trang Agro (Sri Trang) with an OUTPERFORM rating and a price target of THB39.35 per share.

For Sri Trang’s secondary listing (STA SP), our price target is SGD1.65 (based on an
exchange rate of THB23.88/SGD as of 13 April 2011).

Sri Trang is one of the largest rubber processors globally and operates an end-to-end supply chain from rubber plantations to end customers.

From 2010 to 2013, we expect the company to achieve a net profit CAGR of 14% as a result of strong volume growth and robust profitability.

Our price target offers 20% potential upside and is based on a PER target multiple of 11x 2011E.

Source: Std Chartered

[LenaHuat]

Made my first purchase @S$1.10 today. Took only baby step.

[winston]

Not vested


Overlooked and undervalued.

Our DCF estimate of STA is S$1.37, based on WACC of 8.2%, Rf of 6%, Rm of 13%, beta of 0.78x, and TG of 3%. We employed long-term NR price (STR20) of US$3,786/MT.

Key catalyst: delivery of new capacities Key re-rating catalyst for STA is the commissioning of the extra 523k MT of processing capacity – scheduled for 2012.

Risks. A lower than expected NR price and a failure to execute on their stated growth strategy due to inability to gain processing licenses in Indonesia are key risks to our call.

[LenaHuat]

Pretty good volume today. Wonder if YingLuck has something to do with it

[eauyong]

Election of new PM by Aug 5

[tonylim]

She has no match to our Mdm. santa claus la .