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.
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.