Brokers' take

Geo Energy Resources | Buy Target price: S$0.45 March 8 close: S$0.275 Phillip Securities Research, March 8

WE maintain our forecast 8.5 million tonnes of coal sales volume with US$37/tonne average selling price (ASP) in FY17. (FY16: 5.5 million tonnes of coal sales with US$33/tonne ASP). The coal price was about US$45/tonne last month.

We revise slightly upwards our FY17e/FY18e profit after tax and minority interests (Patmi) forecasts to US$41 million /US$58 million (previous: US$39 million /US$56 million). Based on unchanged price-earning ratio of 11 times and USD/SGD 1.3 times stated in our initiation report, we maintain our target price of S$0.45 for FY17.