Structural challenges likely for plantation sector


PETALING JAYA: The plantation sector lacks catalysts moving forward with the average crude palm oil (CPO) price forecasts pegged at RM4,100 per tonne for 2025 and RM4,000 per tonne for 2026, respectively.

Phillip Capital Research, which initiated a “neutral” rating on the sector, said the overall aggregate sector earnings is forecast to grow by 9.2% year-on-year (y-o-y) in 2025, before facing a 3.4% y-o-y earnings contraction in 2026 due to weaker palm product prices in the second half of 2025 (2H25) and persistent structural challenges.

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