[%UJXA%] 
Research by PIB
Outperform – TP of MYR 2.74

“A Slow Start” 

Stripping out gain on fair value of biological assets of RM10.9m and PPE writeoff amounting to RM0.3m, Sarawak Plantation registered core earnings of RM8.6m for 1QFY24, down 18.9% YoY. The weaker results made up only 11.4% and 13.9% of our and the street full-year expectations, respectively. The weaker-than-expected results were attributed to a shortfall in FFB production. Despite the weaker-than-expected results, we keep our earnings forecasts as we expect to see a strong catch-up in the subsequent months, led by higher FFB production and lower cost of production. Maintain Outperform call with a new TP of RM2.74 after rolling over our valuations to FY25. A first DPS of 5sen was declared for the quarter.

Analyst(s):
Chong Hoe Leong
[%avbX%]

$KLSE-SWKPLNT 
Research by PIB
Outperform – TP of MYR 2.74

“A Slow Start” 

Stripping out gain on fair value of biological assets of RM10.9m and PPE writeoff amounting to RM0.3m, Sarawak Plantation registered core earnings of RM8.6m for 1QFY24, down 18.9% YoY. The weaker results made up only 11.4% and 13.9% of our and the street full-year expectations, respectively. The weaker-than-expected results were attributed to a shortfall in FFB production. Despite the weaker-than-expected results, we keep our earnings forecasts as we expect to see a strong catch-up in the subsequent months, led by higher FFB production and lower cost of production. Maintain Outperform call with a new TP of RM2.74 after rolling over our valuations to FY25. A first DPS of 5sen was declared for the quarter.

Analyst(s):
Chong Hoe Leong
chonghoeleong@publicinvestbank.com.my

$SWKPLNT / 5135 (SARAWAK PLANTATION BERHAD)