- Top Picks are pure planters Ta Ann, Sarawak Oil Palms (SOP), Bumitama Agri (SGX:P8Z), and PP London Sumatra Indonesia (LSIP).
- Despite stronger Malaysian palm oil (PO) output in March of +10.6% m-o-m, PO inventory continued to weaken to 1.72m tonnes (-10.7% m-o-m) due to a strong 28.6% m-o-m rise in exports. We expect PO inventory to remain below the 2m tonne mark for the next few months.
- - Read this at SGinvestors.io -
March production increased 10.6% m-o-m
- March production increased 10.6% m-o-m (+8% y-o-y), as output picked up post the shorter February month. The m-o-m output increase came from Peninsular Malaysia and Sabah, which saw +15% and +10.5% m-o-m growth, but slightly offset by Sarawak at -0.4% m-o-m.
- On the other hand, the y-o-y increase was mainly driven by the spike in Peninsular Malaysia production at +19.1% y-o-y, followed by Sarawak (+3.5% y-o-y), but offset by Sabah (-9.3% y-o-y).
- - Read this at SGinvestors.io -
Malaysia exports improved m-o-m after four consecutive months of decline
- Malaysia exports improved m-o-m after four consecutive months of decline, rising 28.6% m-o-m in March (-11.4% y-o-y), bringing year-to-date exports to -1.6% y-o-y. The rebound in exports performance was likely supported by the festive season as well as some restocking activities.
- As at end-February, China’s and India's stocks were at 15% and 13% below historical levels, while Bangladesh's stock levels were 12% above historical levels.
Inventory levels continued to decline by 10.7% m-o-m
- Read more at SGinvestors.io.
Hoe Lee Leng RHB Securities Research | Singapore Research RHB Invest | Indonesia Research RHB Invest | https://www.rhbgroup.com/ 2024-04-16
More views on outlook of plantation sector:
Analyst Reports on Singapore Plantation Sector
Read also RHB's most recent report:
2024-08-15 Bumitama Agri - Expecting a Better 2H24; Still NEUTRAL.
Previous report by RHB:
2024-08-12 Bumitama Agri - Moderate ESG Score & Valuation.
Price targets by 2 other brokers at Bumitama Agri Target Prices.
Listing of research reports at Bumitama Agri Analyst Reports.
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