- As a result of higher m-o-m output and weaker exports, PO inventory rose to 1.74m tonnes in April. We expect PO inventory to remain below the 2m tonne mark at least until June.
- As for the upcoming results season, we expect flattish q-o-q earnings with mostly in line earnings.
1Q24F earnings to be flattish q-o-q for Malaysian & Indonesian planters.
- - Read this at SGinvestors.io -
- In Malaysia, FFB output of the companies under our coverage dipped by an average of 21.6% q-o-q, while spot CPO prices rose 9% q-o-q to MYR4,006/tonne.
- In Indonesia, we estimate that 1Q24 FFB output for stocks under our coverage fell by a smaller 16.5% q-o-q (based on seasonal trends) while CPO prices – net of taxes – rose 9% q-o-q. We believe the smaller decline in output in Indonesia was due to low base effect given the weak output in 4Q23.
Indonesian planters should see higher earnings y-o-y, while Malaysian planters could see flattish numbers.
- - Read this at SGinvestors.io -
- In Indonesia, FFB output is estimated to have fallen by a slight 0.7% y-o-y in 1Q24, but CPO prices net of taxes, rose 5.5% y-o-y.
1Q24F is likely to bring largely in-line earnings
- Read more at SGinvestors.io.
Hoe Lee Leng RHB Securities Research | Singapore Research RHB Invest | Indonesia Research RHB Invest | https://www.rhbgroup.com/ 2024-05-13
