Asian Citrus’ winter orange crop yield slip by 6%
Check out what to blame.
Asian Citrus announced that its total actual Winter Orange crop yield were down by 6% YoY to 161k tons, which were broadly in-line with the tonnage indicated in the previous preliminary trading update statement.
According to Maybank, the decrease was mainly due to the impact of its replanting program and unfavourable weather throughout the year.
In all, sales of winter oranges were 15% short of our projections (as according to previous trading update, its negotiated ASP was up slightly by 1% YoY), which should imply approximately 8%/5% downside risk to our orange sales/total sales projections for FY6/13F. Expect share price weakness given the uninspiring winter trading crop update. Action: We are currently reviewing our estimates.