PLANTATION
[%BBEg%] [%GvLh%]
Research by HLIB
Neutral

“10-month-low stockpile”

Palm oil stock level fell for the fifth consecutive month, by -10.7% MoM to 1.72m tonnes in Mar-24 (the lowest since May-23), as seasonally strong exports demand more than offset higher output. We believe stockpile will resume its uptrend from Apr-24, as production will likely remain on uptrend (due to seasonality) while exports will likely weaken on the back of the absence of festive-driven demand and palm’s weak price competitiveness over other competing oils. 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(s):
Chye Wen Fei
[%AnzD%]

PLANTATION
$KLSE-IOICORP $KLSE-HAPSENG
Research by HLIB
Neutral

“10-month-low stockpile”

Palm oil stock level fell for the fifth consecutive month, by -10.7% MoM to 1.72m tonnes in Mar-24 (the lowest since May-23), as seasonally strong exports demand more than offset higher output. We believe stockpile will resume its uptrend from Apr-24, as production will likely remain on uptrend (due to seasonality) while exports will likely weaken on the back of the absence of festive-driven demand and palm’s weak price competitiveness over other competing oils. 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(s):
Chye Wen Fei
wfchye@hlib.hongleong.com.my

$HAPSENG / 3034 (HAP SENG CONSOLIDATED BERHAD)