“These levels should decrease once Indonesia’s stock levels normalise, and once the disappointing peak output caused by Malaysia’s labour shortage kicks in,” says the team led by Hoe. “The 2QFY2022 reporting season saw most planters booking results that were in line, after four consecutive quarters of beating forecasts,” the team adds.
RHB Group Research analyst Hoe Lee Leng, as well as the research teams from Singapore and Indonesia, are keeping their “neutral” recommendation on the plantation sector as crude palm oil (CPO) prices remain under pressure.
The price pressures are due to the rising stock levels in Malaysia due to the policy reversal in Indonesia.
