It is not Good Still, It is Predicted, Astra Agro Would be Stagnant

It is not Good Still, It is Predicted, Astra Agro Would be Stagnant

InfoSAWIT, JAKARTA – The expectation of increasing demand and the trend of increasing volume of crude palm oil (CPO) production globally would make the selling price tend to decrease next year. The phenomenon might be potential to make the profit  of PT Astra Agro Lestari Tbk (AALI) not optimal next year.

Based on Oilwords, it is revealed, the global palm oil consumption would get better 5% to be 66,9 million tons next year. While the CPO production would increase about 4,3% to be 68,8 million tons. This would increase the CPO supply ration from the target 16,6% in this year to be 18,5% next year.

As quoted from beritasatu.combased on the prediction, the team of Danareksa Sekuritaspredicted, the average CPO selling price in 2018 would get cheaper to be RM 2.700 per ton, compared the the prediction in this year, that reached about RM 2.800. The assumption would make the financial of Astra Agro tend to be stagnant in next year.

Analsyst of Danareksa Sekuritas, Yudha Gautama said, the plantation company would be facing different situation next year. It happens for CPO increasing demand from India and China in next year. In the same time, the palm oil plantation would face the chance of increasing production in the next year as the increasing recovery of harvest based on the areas.(T3)

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