Genting Plantations poised to record stronger earnings


The research unit is also reiterating an “add” for Genting Plantation’s exposure to the rising CPO prices with a higher target price at RM10.90

PETALING JAYA: Genting Plantations Bhd is expected to post stronger earnings in the fourth quarter of financial year 2020 (FY20) due to a recovery in fresh fruit bunches (FFB) yields at its estates in Indonesia and higher average crude palm oil (CPO) prices.

However, the earnings could be partially offset by the group’s weaker property and joint-venture earnings, said CGS-CIMB Research in a report.

The research unit is also reiterating an “add” for Genting Plantation’s exposure to the rising CPO prices with a higher target price at RM10.90.

The planter also expected production from its Indonesian estates to peak in the fourth quarter of FY20.

“We expect the combination of higher quarter-on-quarter production and prices to lift the group’s fourth-quarter earnings, ” added the research unit.

Genting Plantations pointed out that its estates in Indonesia would likely return to their growth trajectory in 2021 due to the young age profile of their palm trees.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

MARC: Net foreign inflow into Malaysian bonds at RM18.3b in 2020
MAA expects vehicle sales to grow 8% in 2021
Quick take: Cymao slumps to low of RM1.55
UOB Kay Hian: Dancomech's earnings to grow at CAGR of 14%
Ringgit higher for 3rd straight day as US$ drifts
Bursa gets lift as global stocks hit all-time high
Quick take: Genting Malaysia slides on temporary closure
Globaltec's NuEnergy finds natural gas in Muara Enim
Quick take: Fintec rises in active trade
AmInvestment upgrades Bursa to 'buy' on higher trading volume

Stories You'll Enjoy