Higher CPO prices to support SDP H2 earnings

Kenanga Research said the company's performance in 1H23 was generally weaker across upstream and downstream largely due to softer palm oil prices and higher costs.

PETALING JAYA: Analysts are split on the prospects of Sime Darby Plantation Bhd (SDP), with some citing their concerns on the planter’s earnings for the first half of financial year 2023 (1H23), which are below consensus estimates.

Having said that, they expect higher crude palm oil (CPO) prices in the latter half of the year to lend some support.