[%XVxm%] 
Research by RHB
BUY – TP RM 3.25

" Strong EBIT/ha and Inexpensive Valuation; Still BUY”

. The plantation industry is at a crossroads. With rising costs,falling yields, little chance for landbank expansion, where can growth come from? As Sarawak Oil Palms’ EBIT/ha is already better than its peers, it may be able to improve this by expanding further downstream and raising its ESG credentials.We continue to like the company for its attractive valuation of 8x P/E, at the lower-end of its peer range of 6-10x.   

Analyst:
Hoe Lee Leng
[%NxdY%]

$KLSE-SOP 
Research by RHB
BUY – TP RM 3.25

" Strong EBIT/ha and Inexpensive Valuation; Still BUY”

. The plantation industry is at a crossroads. With rising costs,falling yields, little chance for landbank expansion, where can growth come from? As Sarawak Oil Palms’ EBIT/ha is already better than its peers, it may be able to improve this by expanding further downstream and raising its ESG credentials.We continue to like the company for its attractive valuation of 8x P/E, at the lower-end of its peer range of 6-10x.   

Analyst:
Hoe Lee Leng
hoe.lee.leng@rhbgroup.com