Why Golden Agri's latest hiring moves won't save it from near-term risks
Margin pressure still persists.
According to Phillip Securities, Golden Agri has great plans to grow its downstream business via the recent high profile hires of seniors from Cargill and Louis Dreyfus, to tap on their valuable network and expertise.
"Albeit this will be good for the group in the long run (as it becomes less dependent on its upstream business), we think it will take some time for its downstream
growth strategy to bear fruit, and we see near-term margin pressure due to higher salary costs," Phillip Securities said.