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Research by CGS
ADD – TP RM5.50

"Timber losses offset by stronger oil palm”

■ 1H24 core net profit at 33% of our/Bloomberg consensus’ full-year forecasts, dragged by timber division losses, offset by stronger oil palm performance.
■ We expect better 2H24F earnings from its oil palm division amid higher CPO ASP and lower cost of production, and better log and plywood production.
■ Reiterate Add with an unchanged TP, supported by strong balance sheet and attractive valuation. Dividend yield of c.5-6% for FY24F is decent, in our view

Analyst:
Jacquelyn YOW
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$KLSE-TAANN 
Research by CGS
ADD – TP RM5.50

"Timber losses offset by stronger oil palm”

■ 1H24 core net profit at 33% of our/Bloomberg consensus’ full-year forecasts, dragged by timber division losses, offset by stronger oil palm performance.
■ We expect better 2H24F earnings from its oil palm division amid higher CPO ASP and lower cost of production, and better log and plywood production.
■ Reiterate Add with an unchanged TP, supported by strong balance sheet and attractive valuation. Dividend yield of c.5-6% for FY24F is decent, in our view

Analyst:
Jacquelyn YOW
jacquelyn.yow@cgsi.com