The plantation company’s shares remained flat at RM2.17, with 7,400 shares traded at 11.55am, giving it a market capitalisation of RM608 million.

Public Investment Bank Bhd (PIBB) maintained its earnings forecasts for Sarawak Plantation, anticipating a strong performance in the second half of FY2024 (H2 FY2024) due to seasonally higher production and lower costs.

“Stripping out a RM19.9 million gain on the fair value of biological assets and a write-off in property, plant and equipment, Sarawak Plantation registered core earnings of RM25.6 million for Q2 FY2024, up 20.2% y-o-y.

“Nevertheless, these results account for only 34% and 31% of our and the street’s full-year expectations, respectively,” PIBB said.

PIBB reiterated its “outperform” rating on Sarawak Plantation, with an unchanged target price (TP) of RM2.74, based on ten times FY2025 earnings-per-share.

Meanwhile, MIDF Amanah Investment Bank Bhd adjusted its earnings forecasts for Sarawak Plantation by +2.5%, -17.2%, and -27.3% y-o-y for the financial years 2024, 2025, and 2026, respectively.

These revisions account for the updated average crude palm oil TP of RM3,800, RM3,600, and RM3,400 per metric tonne in those years, as well as elevated production costs.

The investment bank maintained a “neutral” rating on Sarawak Plantation, with a revised TP of RM1.98, rolling over its valuation to an 8.8 times price-to-earnings ratio, pegging full FY2025 earnings-per-share at 22 sen.