PETALING JAYA: UOB Kay Hian (UOBKH) Research expects Hap Seng Plantations Holdings Bhd
to deliver lower earnings year-on-year (y-o-y) in its first quarter of financial year 2026 (1Q26), due to softer crude palm oil (CPO) prices despite improved operational performance.
In a report yesterday, UOBKH Research said earnings are also expected to decline quarter-on-quarter, in tandem with seasonally lower production.
“Earnings are expected to pick up in the subsequent quarters, underpinned by a positive net impact from higher CPO prices and improving production.”
UOBKH Research said Hap Seng recorded robust operational growth in 1Q26, with fresh fruit bunches (FFB) and CPO production rising 16% and 19% y-o-y, respectively.
“The strong performance was driven by sustained momentum from the peak harvest season in 4Q25 and supported by better harvesting conditions and favourable weather in Sabah.
“While production has likely bottomed out in February 2026, output is expected to continue its sequential recovery into the coming quarters with FFB output still on track to meet management’s target of 715,000 tonnes in 2026.”
Despite declaring a lower dividend in 2025, UOBKH Research said it remains optimistic on Hap Seng’s ability to deliver stronger capital return, underpinned by improved earnings prospects in 2026 and its healthy net cash position.
