SD Guthrie's yield drive could unlock RM482m annual profit
KUALA LUMPUR: SD Guthrie Bhd’s ambition to raise plantation oil yields by one tonne per hectare by 2029 could potentially lift its annual net profit by RM482 million, providing a significant earnings growth opportunity beyond fluctuations in crude palm oil (CPO) prices.
SD Guthrie, a Malaysian plantation oil company, aims to increase plantation oil yields by one tonne per hectare by 2029, potentially boosting its annual net profit by RM482 million. This ambitious target, outlined by the company's president and CEO, Mohd Haris Mohd Arshad, forms part of SD Guthrie's broader medium- to long-term strategy to improve shareholder returns.
CIMB Securities, a financial services firm, estimates that achieving this target could unlock an additional equity value of RM8 billion or RM1.15 per share, based on a 16.5 times price-to-earnings multiple. The strategy also includes monetising strategically located plantation land and expanding midstream and downstream businesses.
SD Guthrie plans to increase its combined oil yield from 3.99 tonnes per hectare in 2021 to around five tonnes per hectare by 2029, requiring an annual yield growth of 5.6% between 2025 and 2029. The yield stood at 4.01 tonnes per hectare in 2025, indicating the scale of improvement needed.
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