Wednesday, July 25, 2012

Sarawak Oil Palms: Maintain Buy - Hits Another Milestone

Visit to Bintulu. An opportunity to view its newly completed downstream operations reaffirms our bullish view on SOP, on account of its execution ability and potential to scale greater heights going forward. Its downstream endeavour is a strategic move amid a shortage of refining capacity in Sarawak and the upcoming peak production season. SOP continues to trade at an unjustifiable discount to its peers. Reiterate BUY with unchanged TP of MYR8.00 on 13x FY13 PER.

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Source: Maybank Research - 25 July 2012

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