CLSA Gozco (GZCO IJ) to delay this year's palm oil plantation acquisitions plan

Gozco plans to delay its acquisition plan from initially expected to be within this year. The company is currently in talk with three palm oil plantation companies in South Sumatra, Central Kalimantan, and West Kalimantan and has allocated Rp500bn of capex for acquisition. Comment: Organic expansion will continue at the current pace with additional 5,500-7,500 ha per year. The company, however, will continuously seek to expand its plantation business through both organic growth and acquisitions. The company completed the acquisition of Palma last year, taking it to be a plantation company with the largest land bank in relative to its planted area.