(GENP MK/SELL/RM10.58/Target: RM9.80)

GENP reported stronger-than-expected 2Q17 results thanks to higher FFB production, a better CPO ASP and higher downstream sales. GENP declared a higher dividend of 5.5 sen in 2Q17 (vs 2Q16: 2sen). There could be upside potential to our dividend forecast as GENP could declare a special dividend in view of a strong CPO ASP. Meanwhile, its longer-term outlook is capped by potential weakness in CPO ASP. Maintain SELL. Target price: RM9.80.

Source: UOB Kay Hian Research - 24 Aug 2017