Sarawak Plantation earnings upgraded on CPO, FFB growth
KUALA LUMPUR: PublicInvestment Bank Bhd (PublicInvest) has raised its earnings forecast for Sarawak Plantation Bhd between seven and 15 per cent for financial year 2026 (FY26) through FY28 on higher crude palm oil (CPO) price and improved fresh fruit bunch (FFB) yield.
PublicInvest has upgraded its earnings forecast for Sarawak Plantation Bhd, anticipating a seven to 15 per cent increase for financial years 2026 to 2028 due to higher crude palm oil (CPO) prices and improved fresh fruit bunch (FFB) yields. The firm has maintained its Outperform rating on the stock with a target price of RM5.59, based on a revised 12 times earnings per share for FY27.
Sarawak Plantation reported a first-half 2026 core profit of RM52 million, accounting for 50% of PublicInvest's full-year expectations and 54% of consensus. The stronger plantation earnings were driven by higher FFB production growth, though the dry weather in Sarawak has slightly affected fruit ripening and delayed harvesting, leading to a more conservative FFB production growth estimate of 12-15% for FY26.
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