Regional Plantation 
Research by RHB
BUY (Maintained); Price Target: [%RhpA%] RM27.35 [%cOji%] SGD1.95 [%dWLT%] IDR16,160
 
"Stock/Usage Ratio Falls Below Historical Mean" 
 
Maintain OVERWEIGHT, regional Top Picks: Kuala Lumpur Kepong, First Resources and Astra Agro. Malaysian production continued to decline, while stocks inched closer to the 2m mark and stock/usage ratio fell to below the 15-year historical mean. We expect a pullback in prices before it resumes its upward trajectory in 1H20.Production dropped 14.4% MoM in November, coming off from the peak season. YTD-Nov 2019, output growth moderated further to +4.6% YoY. We continue to expect a moderation of growth in December, with Malaysia ending the year at around 3-4% mark for 2019.
 
Hoe Lee Leng
 +603 9280 8860
[%gXNm%]

Christopher Andre Benas 
+6221 2970 7056 
[%JWPt%]

Singapore Research 
+65 6533 0781 
[%mSGV%]

Regional Plantation 
Research by RHB
BUY (Maintained); Price Target: $KLSE-KLK RM27.35 $SGX-EB5 SGD1.95 $AALI IDR16,160
 
"Stock/Usage Ratio Falls Below Historical Mean" 
 
Maintain OVERWEIGHT, regional Top Picks: Kuala Lumpur Kepong, First Resources and Astra Agro. Malaysian production continued to decline, while stocks inched closer to the 2m mark and stock/usage ratio fell to below the 15-year historical mean. We expect a pullback in prices before it resumes its upward trajectory in 1H20.Production dropped 14.4% MoM in November, coming off from the peak season. YTD-Nov 2019, output growth moderated further to +4.6% YoY. We continue to expect a moderation of growth in December, with Malaysia ending the year at around 3-4% mark for 2019.
 
Hoe Lee Leng
 +603 9280 8860
Hoe.lee.leng@rhbgroup.com

Christopher Andre Benas 
+6221 2970 7056 
Christopher.benas@rhbgroup.com

Singapore Research 
+65 6533 0781 
Sg.research@rhbgroup.com