Plantation sectorMAYBANK RESEARCH (April 25): Indonesia’s ban on palm oil exports will worsen the tightness in global edible oil supply. We expect Bursa Malaysia Derivative’s Futures Crude Palm Oil to trade higher (possibly retesting recent highs) while Indonesia’s domestic crude palm oil (CPO) price will gravitate towards subsidised cooking oil price if the ban stays. Pure Malaysian plays include Sarawak Oil Palms Bhd, Ta Ann Holdings Bhd, Boustead Plantations Bhd and Hap Seng Plantations Holdings Bhd. Nonetheless, we also believe that any fruition or materialisation of Uzma’s ventures into the solar space will serve as immediate re-rating catalyst. Currently, listed solar players (Solarvest Holdings Bhd, Samaiden Group Bhd, and Pekat Group Bhd) are trading at a huge valuation premium compared to Uzma.

Source: The Edge Markets May 09, 2022 12:09 UTC