PETALING JAYA: Sarawak Plantation Bhd
’s latest financial results are seen to be broadly in line with analysts’ expectations.
This is given the seasonally lower production volumes typically seen among plantation companies in the first half of 2026 (1H26), said Apex Research.
It noted that Sarawak Plantation’s core net profit for the six months ended June 30, 2026 (6M26) of RM46.6mil accounted for 43% of its full-year forecast and 48% of consensus’ estimates.
“While 6M26 core net profit came in slightly below our typical 45% to 55% benchmark, we deem the results in line, given the seasonally lower production volumes among plantation firms in 1H26.”
Second-quarter (2Q) core net profit rose 73.1% year-on-year (y-o-y) to RM30.9mil as revenue increased 12% to RM147.3mil, supported by higher crude palm oil (CPO) and palm kernel (PK) selling prices, as well as stronger volumes.
Apex Research said fresh fruit bunch (FFB), CPO and PK production all increased both y-o-y and quarter-on-quarter (q-o-q) during the 2Q, with the sequential improvement aided by the seasonal recovery in output. FFB production rose 20.3% q-o-q and 12.6% y-o-y to 95,125 tonnes, while CPO production climbed 35.8% q-o-q and 6% y-o-y to 25,968 tonnes.
The research house lifted the target price to RM4.67 from RM3.89, but downgraded Sarawak Plantation to a “hold”.
