[%MIek%] 
Research by RHB
Neutral – TP RM 1.15

" Lacklustre ESG Credentials; U/G To NEUTRAL”

The plantation industry is at a crossroads. With rising costs, falling yields, and little chance for landbank expansion, is diversification the way forward? Although FGV Holdings is already diversified, with its logistics, sugar, and dairy businesses, its upstream plantation division remains at a loss. We also see no improvements in its ESG credentials for the year. However, as its share price has corrected, we see less downside risk now. 

Analyst:
Hoe Lee Leng
[%gqeD%]

$KLSE-FGV 
Research by RHB
Neutral – TP RM 1.15

" Lacklustre ESG Credentials; U/G To NEUTRAL”

The plantation industry is at a crossroads. With rising costs, falling yields, and little chance for landbank expansion, is diversification the way forward? Although FGV Holdings is already diversified, with its logistics, sugar, and dairy businesses, its upstream plantation division remains at a loss. We also see no improvements in its ESG credentials for the year. However, as its share price has corrected, we see less downside risk now. 

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