PETALING JAYA: CIMB Research is positive on Johor Plantations Group Bhd
’s (JPG) plans to grow its returns through superior agronomic practices and disciplined estate management.
This will result in the growth of its production levels and revenues, going forward. The research house has initiated coverage on the stock with a “hold” call and target price of RM1.91 a share, the valuation based on a 2027 price earnings multiple of 14.5 times, which is in line with valuation of other mid-sized plantation companies on Bursa Malaysia.
The mid-sized planter with some 55,723 ha under palm oil – mainly in Johor – intends to accelerate replanting to boost future palm products yields, increase external sourcing of fresh fruit bunches (FFB) and expand downstream operations via its Integrated Sustainable Palm Oil Complex in Johor.
It recently inked agreements to buy third party FFB from some 13,200 ha in Johor after external FFB supply had risen by 26.5% year-on-year in 2025.
JPG plans to replant 7% of its planted area annually, starting with 3,607 ha in 2026, 3,572 ha in 2027, and 3,495 ha in 2028, CIMB Research further said in a report yesterday.
The group’s palm product yield came in at 5.8 tonnes per ha in 2025, but JPG aims to reach seven tonnes by 2036, providing a pathway to higher revenue per ha.
CIMB Research noted that JPG’s strategy roadmap targets for the company to transition from primarily upstream operations into an integrated essentials and bioenergy producer, with a focus on sustainable, higher-value growth.
CIMB Research expects JPG’s core net profit to remain flattish in financial year 2026 (FY26) before declining 6% in FY27.
