UOBKH Research said it expects lower costs to aid Hap Seng Plantations’ performance.
PETALING JAYA: While Hap Seng Plantations Holdings Bhd
is expected to post a seasonally weaker performance in the first quarter of this year (1Q25), the group’s full-year earnings outlook remains positive, underpinned by stronger fresh fruit bunch (FFB) output and higher crude palm oil (CPO) prices, analysts say.
UOB Kay Hian Research (UOBKH Research) has raised its earnings forecasts for the plantation company for this year and next by 28% and 61%, respectively, on the back of higher FFB production growth of 9% from 3% previously, while maintaining its projected average CPO selling average selling price at RM4,500 per tonne.
