PLANTATION
[%bTvu%] [%dogc%] [%pLWv%] 
Research by PIB
Neutral

“Inventory Jumps the Most in 8 Months”

Palm oil inventories in Malaysia extended their gains in June with an increase of 4.3% to 1.82m mt, the highest level in 4 months. YTD, CPO prices averaged RM4,025/mt, compared to our full-year average target of RM3,800/mt. In view of higher production in the second half, we expect inventory to continue trending upward, which may consequently exert downward pressure on CPO prices. We expect to see range-bound trading levels of RM3,600-3,800/mt in the 2H. At the point of writing, CPO futures stood at RM3,876/mt. Maintain Neutral on the sector.

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

PLANTATION
$KLSE-IOICORP $KLSE-KLK $KLSE-GENP 
Research by PIB
Neutral

“Inventory Jumps the Most in 8 Months”

Palm oil inventories in Malaysia extended their gains in June with an increase of 4.3% to 1.82m mt, the highest level in 4 months. YTD, CPO prices averaged RM4,025/mt, compared to our full-year average target of RM3,800/mt. In view of higher production in the second half, we expect inventory to continue trending upward, which may consequently exert downward pressure on CPO prices. We expect to see range-bound trading levels of RM3,600-3,800/mt in the 2H. At the point of writing, CPO futures stood at RM3,876/mt. Maintain Neutral on the sector.

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

$GENP / 2291 (GENTING PLANTATIONS BERHAD)