Friday, May 12, 2017

Sector Update - Plantation (NEUTRAL, maintain)

Top Calls

Sector Update - Plantation (NEUTRAL, maintain)

- Higher inventory as production rises

CPO production in April trended higher mom and yoy on the back of a production recovery post the El Nino phenomenon. Exports were higher as key buyers such as China, the EU, the US and Turkey bought more palm-oil products. However, as production levels came in above exports, closing inventory rose to 1.6m MT. CPO ASP trended lower to RM2,752.50/MT in April. Overall, we maintain our CPO ASP assumption of RM2,600/MT for 2017, as well as our sector NEUTRAL rating and stock target prices.

Other Calls

Economic Update Malaysia-IPI

- Malaysias IPI rises to 4.6% yoy in March

For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.

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