PLANTATION
 [%NlKB%] [%mFsp%] [%PprX%] [%reKM%] [%OCDs%] 
Research by HLIB
Neutral (Maintain)

"Lowest stockpile in 6 months"

Palm oil stockpile fell by -11.8% MoM to 2.02m tonnes in Jan-24, as lower exports were more than offset by lower opening stocks, imports, and production. The stock level came in lower than Bloomberg’s survey’s estimate of 2.09m tonnes, as exports beat expectations. Stockpile will likely dip below 2m tonnes in Feb-24, as palm oil production will likely decline further in Feb-24 (arising from seasonality). We maintain 2024-25 CPO price assumptions of RM4,000/tonne and RM3,800/tonne, as well as our Neutral stance on the sector. For exposure, our top picks are IOI (BUY; TP: RM4.66) and HSP (BUY; TP:
RM2.06).

Analyst:
Chye Wen Fei
[%ZnrI%]

PLANTATION
 $KLSE-FGV $KLSE-GENP $KLSE-HAPSENG $KLSE-IOICORP $KLSE-KLK 
Research by HLIB
Neutral (Maintain)

"Lowest stockpile in 6 months"

Palm oil stockpile fell by -11.8% MoM to 2.02m tonnes in Jan-24, as lower exports were more than offset by lower opening stocks, imports, and production. The stock level came in lower than Bloomberg’s survey’s estimate of 2.09m tonnes, as exports beat expectations. Stockpile will likely dip below 2m tonnes in Feb-24, as palm oil production will likely decline further in Feb-24 (arising from seasonality). We maintain 2024-25 CPO price assumptions of RM4,000/tonne and RM3,800/tonne, as well as our Neutral stance on the sector. For exposure, our top picks are IOI (BUY; TP: RM4.66) and HSP (BUY; TP:
RM2.06).

Analyst:
Chye Wen Fei
wfchye@hlib.hongleong.com.my

$GENP / 2291 (GENTING PLANTATIONS BERHAD)

$HAPSENG / 3034 (HAP SENG CONSOLIDATED BERHAD)