Attractive Undervalued Gems Among Plantation Sector

RHB Investment Bank Bhd (RHB Research) maintained its OVERWEIGHT call on the plantation sector, with top picks including Johor Plantations Bhd, Sarawak Oil Palms Bhd, IOI Corp Bhd, Hap Seng Plantations Holdings Bhd, SD Guthrie Bhd, Triputra Agro Persada and First Resources, as the research house raised its crude palm oil (CPO) price assumptions for 2027 and 2028 on expectations of a strong El Niño event.

RHB Research lifted its CPO price forecasts to RM4,500 per tonne for 2027 and RM4,400 per tonne for 2028 from RM4,300 per tonne previously, citing weather models that point towards a potentially strong El Niño developing in 2026, with the biggest impact expected from October onwards.

…