PETALING JAYA: Mercury Securities Research (Mercury Research) likes MKH Oil Palm (East Kalimantan) Bhd (MKHOP) for its plantation acreage’s age profile and superior fresh fruit bunch (FFB) yield, which makes the company a compelling investment play should crude palm oil (CPO) prices remain high.
The research house noted that despite achieving better average selling prices (ASP), the margins for MKHOP had been on a downtrend since financial year 2021 (FY21) mainly due to the spike in fertiliser and labour costs.
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