Fgv Holdings Berhad

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research Report by HLIB

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research Report by HLIB

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research Report by TA

SIK: FGV Holdings Bhd plans to implement innovative farm management techniques to address the challenges of climate change, which are causing a decrease in palm oil yields.

$FGV / 5222 (FGV HOLDINGS BERHAD)

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research by TA
Sell - TP RM1.19

"Still Lack of Major Catalysts"

MaintainSELLonFGVwitharevisedtargetpriceofRM1.19/share,based on 0.7x CY25 P/BV.

Analyst:
Angeline Chin
angelinechin@ta.com.my

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research by RHB
Neutral - TP RM1.30

"Strong Recovery For Plantation, But Not For Sugar"

Keep NEUTRAL, with new MYR1.30 TP from MYR1.15, 5% upside. 1H24 core earnings met our, but fell short of consensus expectations. FGV Holding’s plantation division returned to the black while the sugar division reversed into losses. We expect earnings to pick up, given the upcoming peak FFB output season and lower costs. However, valuation remains unexciting – the stock is trading at a steep 40x FY25F P/E vs peer range of 18-22x.

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

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research by MIDF
Neutral - TP RM1.31

"Slow And Steady"

• Earnings returned to black
• Plantation business: profit jumped on higher FFB output
• Sugar subsegment turned into the red
• Earnings estimate: Maintained
• Maintain NEUTRAL with a revised TP of RM1.31

Analyst:
MIDF Research Team
research@midf.com.my

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research by HLIB
Hold - TP RM1.30

"Further improvements in productivity"

1H24’s core net profit of RM45.1m (vs. core net loss of -RM34.2m in 1H23) accounted for 45% our full-year estimates (consensus: 24%). We consider the results within our expectation (but below consensus), as we expect 2H to come in stronger (vs 1H) on the back of seasonally higher FFB output. During the briefing, management expects FFB output growth to pick up further in 2H24, as it expects further productivity improvements from rehabilitation works carried out since last year. Maintain earnings forecasts. However, our sum-of-parts derived TP lowered to RM1.30 (from RM1.42) as we updated MSM’s latest share price in our valuation parameters.

Analyst:
Chye Wen Fei
wfchye@hlib.hongleong.com.my

$FGV / 5222 (FGV HOLDINGS BERHAD)
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

Agribusiness and food company, FGV Holdings Bhd, has submitted a petition to the US Customs and Border Protection (CBP) for the modification of the Withhold Release Order (WRO) on palm oil and palm oil products produced by the group.

Change in Boardroom - ENCIK AZIZAN BIN ZAKARIA

Change in Audit Committee - ENCIK AZIZAN BIN ZAKARIA

Change in Boardroom - PUAN NIK FAZILA BINTI NIK MOHAMED SHIHABUDDIN

Change in Audit Committee - PUAN NIK FAZILA BINTI NIK MOHAMED SHIHABUDDIN

Change in Risk Committee - PUAN NIK FAZILA BINTI NIK MOHAMED SHIHABUDDIN

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

MATERIAL LITIGATIONKOTA KINABALU HIGH COURT
SUIT NO.: BKI-22NCvC-21/3-2023
EUGGNE KOUSAI
v.
1. SRI KEHUMA SDN. BHD.
2. YAPIDMAS PLANTATION SDN. BHD.

Change in Risk Committee - DATO' MOHD RAFIK BIN SHAH MOHAMAD

Change in Boardroom - DATO' MOHD RAFIK BIN SHAH MOHAMAD

Change in Audit Committee - DATO' MOHD RAFIK BIN SHAH MOHAMAD

General Meetings: Outcome of Meeting

FGV Holdings Bhd’s disappointing first quarter of the financial year 2024 (1Q24) results have prompted most analysts to lower their FY24 to FY26 earnings forecasts on the integrated agri-business group.

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research by RHB
Sell – TP RM1.20

“Losses At Plantation Unit In 1Q24; D/G To SELL"

D/GtoSELLfromNeutral,newMYR1.20TPfromMYR1.58,11%downside. 1Q24 disappointed, as FGV Holding’s plantation unit reversed into losses. Although we expect earnings to pick up, given the improving FFB output and a profitable sugar division buoyed by government incentives, valuations are lofty – the stock is trading at a steep 50x FY24F P/E vs peer range of 20-25x.

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

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research by HLIB
Hold – TP RM1.44

“A disappointing start"

1Q24 core net profit of RM2.5m (-97.2% QoQ; >100% YoY) missed expectations, accounting for only 0.8-1.9% of consensus and our full-year estimates, due mainly to lower-than-expected FFB output. We cut our FY24 core net profit forecast by -18.1%, mainly to account for lower FFB output assumption. Post update of valuation parameters, we maintain our HOLD rating on FGV with a lower sum-of-parts TP of RM1.44.

Analyst:
Chye Wen Fei
wfchye@hlib.hongleong.com.my

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research by TA
Sell – TP RM1.34

“Into the Red Again"

We downgrade FGV to SELL from Hold with a revised target price of RM1.34/share (Previously RM1.50), based on 0.8x CY25 P/BV. We do not see any re-rating catalysts in the near term for the stock.

Analyst:
Angeline Chin
angelinechin@ta.com.my

$FGV / 5222 (FGV HOLDINGS BERHAD)
Research by MIDF
Sell – TP RM1.14

“Earnings Compression Continued"

• Below Expectation
• Plantation business: profit dragged by lower FFB output
• Sugar subsegment continued in black, supporting the group operating profit surprisingly
• Earnings estimate: Tweaked lower
• Maintain SELL with a revised TP of RM1.14

Analyst:
MIDF Research Team
research@midf.com.my

OTHERSFGV HOLDINGS BERHAD - PRESS RELEASE - FGV Maintains Profitability in Q1 FY2024 with Diversified Business Portfolio

PUBLIC SHAREHOLDINGS SPREAD

KUALA LUMPUR: FGV Holdings Bhd slipped into the red in the first quarter ended March 31, 2024 (1Q24) with a net loss of RM13.49 million from a net profit of RM12.09 million, dragged by lower profits across most divisions. 

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