Equity Analysis /
Malaysia

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

    Ivy Ng Lee
    Ivy Ng Lee

    Head of Malaysia Research, Regional Head of Agribusiness

    CGS-CIMB
    26 May 2022
    Published by

    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.