Oct 1, 2010

BW Plantation eyes US$1 billion size

Widodo family, controlling shareholder in CPO player PT BW Plantation Tbk (BWPT) is eyeing US$1 billion market capitalization in the next 4 years.
In an exclusive interview, BW Plantation Executive Chairman Tjipto Widodo, fourth son of Budiono Widodo, said the target is referring to the mature area in 2014 from planted area right now.
"From mature area this year, estimated to reach 15,270 hectares, we believe that CPO output will increase due some areas haven't produced a maximum production when palm tree is at the prime age," he said.
Referring to yesterday's closing level at Rp870 per share, BW Plantation's market capitalization stood at US$380 million.
With mature area of 15,270 hectares, BW ratio of market capitalization to mature area is now US$25,540 per hectare.
Based on the estimation of 51,898 hectares mature area in 2014, BW Plantation could reach US$1.3 billion or Rp2,965 per share. "We see a potential opportunity for the firm to reach US$1 billion market capitalization in 2014. That's our target and hope," he said. BWPT today rises 2.30% to Rp890 per share, sending its market capitalization to Rp3.59 trillion.

Disclosure: No position at the stock mentioned above.

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