PETALING JAYA: Hap Seng Plantations Holdings Bhd
is on track for an output recovery of 715,000 tonnes, supported by a recovery in cropping pattern.
The group has guided financial year ending Dec 31, 2026 (FY26) crude palm oil (CPO) production costs at RM2,200 to RM2,300 per tonne.
Hap Seng also has no plans for aggressive replanting despite an ageing estate.
Hong Leong Investment Bank Research has maintained a “buy” call on the stock with an unchanged target price (TP) of RM2.88, based on 14.5 times FY26 core earnings per share of 19.9 sen.
“We continue to favour Hap Seng for its strong balance sheet, decent valuations and high operating leverage to current elevated CPO prices.”
Phillip Capital Research said its net profit for the first quarter ended March 31, 2026, of RM40mil and revenue of RM192mil came in within both its and consensus expectations, accounting for 28% and 24% of full-year estimates, respectively.
It upgraded its call on the stock to “hold” with a higher TP of RM2.06 from RM1.89.
