Earnings growth may only be visible in 2H12. The key takeaway from the
May 2012 MPOB statistics is that Malaysia's CPO production fell 16.8%
and 20.6% YoY respectively in Apr-May (but rose 5.1% to 8.7% MoM).
Coupled with weaker CPO ASPs of MYR3,295/t (-1.6% YoY) for the 2Q to 11
Jun and a weak spot price of ~MYR3,000/t, 2Q12 earnings of plantation
groups are likely to stay weak YoY (but be relatively stronger QoQ).
Maintain Neutral on the sector. Top BUYs are Ta Ann and SOP for their
attractive valuations and growth prospects.
Click here for full report
Source: Maybank Research - 13 June 2012
No comments:
Post a Comment