KUALA LUMPUR: CIMB Equities Research is maintaining its Trading Buy call on the Malaysian PLANTATION [] sector due to its bullish view for the crude palm oil (CPO) price prospects in the near term.

It said on Thursday, Nov 11 it favoured Kuala Lumpur Kepong for its strong fresh fruit bunches (FFB) output growth prospects and exposure to rubber prices.

"We also like Sime Darby for the potential improvement in the subpar yields from its existing estates as well as the potential sale of assets due to the group's ongoing restructuring following the appointment of a new acting CEO," it said.

CIMB Research said Hap Seng Plantations remains a Trading Buy for its cheap valuations and strong dividend yields.

However, it remained Neutral on IOI Corp due to its slower FFB output growth prospects stemming from its ageing estates.

As for Genting Plantations which had outperformed its peers, it believed the market has priced in the favourable CPO price prospects.

"Given the stronger-than-expected surge in CPO prices, we are likely to upgrade our target prices for all the Malaysian planters when they release their results," it said.