AFFIN: Top Calls Sector Update – Plantation (OVERWEIGHT, maintain)
Inventory declined to 31-month low: Malaysia’s palm-oil inventory in Jan20 declined to 1.76m MT, its lowest level since Jun17, as CPO production fell significantly for the fourth consecutive month to 1.17m MT. We expect the lower demand for palm-oil products from the trade spat with India and the coronavirus in China to only be a temporary setback. We expect CPO prices to be supported by the tightness in global supply of the 8 vegetable oils, especially in 1H20. We maintain our OVERWEIGHT rating on the plantation sector and our CPO ASP assumptions of RM2,500-2,600/MT for 2020-21E.
FGV vs NFC? Of course with the revamp, rightfully is better. Nonetheless it also shows threats in the palm oil industry which is unlikely to overcome in near future. ST est 1.10_1.50.
I really thought FGV will fly this time. Political turmoil, they need malay support. Especially from rural and grassroot level. The peneroka felda will be their best bet. But looks like nobody cares....
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
strattegist
23,459 posts
Posted by strattegist > 2020-02-12 11:45 | Report Abuse
relax...