Golden Agri-Resources (E5H.SG), +3.3% at $0.775 midday, may find it hard to push much higher after 3Q results, as 36% rally since start of October vs STI +6.6% in same period largely prices in expected boost to profits from soaring CPO prices; 3Q net profit +40.6% on-year at US$99.2 million ($127.6 million), +50.3% on quarter; revenue +43% on year at 964.7 million, +32.8% on quarter, due to higher CPO prices. 

Analyst at local brokerage says results strong on surface, but margins “a little bit lower than expected. Core net profit didn't really meet our numbers, but it’s probably taking some time for the higher CPO prices to filter through.” 

Gross margin at 24.5% for 9M10 vs 25.3% for 1H10. Adds, stock “pretty near its fair value, (further gains) will depend on their expansion plans and how they can capture the best of these rising CPO prices.”