MY : Hap Seng Plantations - A strong start amid rising CPO spot prices

1Q22 core net profit was above expectations due mainly to higher-than-expected ASPs for palm products. We anticipate stronger qoq earnings for 2QFY22F on the back of higher CPO prices and seasonally stronger FFB output. We raise our TP slightly to RM2.81 but downgrade HSP to a Hold call as we reckon the sharp CPO price rally has been baked into its current valuations.