Value Buy. SOP hit the road last Thursday, sharing its two-pronged growth strategy of upstream and downstream expansion, while further tantalising investors with the potential unlocking of its Miri land for property development. SOP remains undervalued, trading at 10.8x 2013 PER with an EV/planted ha of RM42,000 (43% below peers). Our estimates have yet to account for its property earnings potential. Reiterate Buy with a TP of RM7.20 on an unchanged 13x 2013 PER.
Maybank Research 12 March 2012
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