PLANTATION
[%HuTf%] [%AEZv%] [%pLSr%] [%mjfE%] 
Research by PB
Neutral

“Inventories Climb to 3-Month High”

Palm oil inventories in Malaysia continued on its uptrend in May with a marginal gain of 0.5% to 1.75m mt, the highest level in 3 months. YTD, CPO prices have averaged RM4,034/mt, compared to our full-year average target of RM3,800/mt. In view of higher production in subsequent months, we expect inventory to continue trending upwards, which may consequently exert downward pressure on CPO prices. Maintain Neutral on the sector.

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

PLANTATION
$KLSE-SWKPLNT $KLSE-SIMEPLT $KLSE-TAANN $KLSE-CHINTEK 
Research by PB
Neutral

“Inventories Climb to 3-Month High”

Palm oil inventories in Malaysia continued on its uptrend in May with a marginal gain of 0.5% to 1.75m mt, the highest level in 3 months. YTD, CPO prices have averaged RM4,034/mt, compared to our full-year average target of RM3,800/mt. In view of higher production in subsequent months, we expect inventory to continue trending upwards, which may consequently exert downward pressure on CPO prices. Maintain Neutral on the sector.

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

$SIMEPLT / 5285 (SIME DARBY PLANTATION BERHAD)

$SWKPLNT / 5135 (SARAWAK PLANTATION BERHAD)

$CHINTEK / 1929 (CHIN TECK PLANTATIONS BERHAD)