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Research by Public
Neutral – TP RM8.38

“A Decent Year"

In view of the stronger than expected FFB growth for the first 9 months amid steady CPO prices, we expect Chin Teck Plantations to achieve commendable results for FY24F. With a war chest of more than RM400m, the group can look for M&A opportunity to expand its landbank size in the existing plantation area. We do not rule the possibility of a privatisation given the current steep discount to its underlying value, which is trading at an unappreciated P/E valuation of only 2x after stripping out the cash level of RM409m and investment securities of RM140m. Maintain Neutral with an unchanged TP of RM8.38.

Analyst:
Chong Hoe Leong
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$KLSE-CHINTEK
Research by Public
Neutral – TP RM8.38

“A Decent Year"

In view of the stronger than expected FFB growth for the first 9 months amid steady CPO prices, we expect Chin Teck Plantations to achieve commendable results for FY24F. With a war chest of more than RM400m, the group can look for M&A opportunity to expand its landbank size in the existing plantation area. We do not rule the possibility of a privatisation given the current steep discount to its underlying value, which is trading at an unappreciated P/E valuation of only 2x after stripping out the cash level of RM409m and investment securities of RM140m. Maintain Neutral with an unchanged TP of RM8.38.

Analyst:
Chong Hoe Leong
chonghoeleong@publicinvestbank.com

$CHINTEK / 1929 (CHIN TECK PLANTATIONS BERHAD)