26/07/2012 (Bernama) - The plantation growth for the Sarawak Oil Palms (SOP) will remain bullish, buoyed by its consistent planting and young oil palm trees aged an average of eight years, Maybank Investment Bank (IB) Research said today.

It estimated the SOP would still deliver a 13 per cent net profit compound annual growth rate from last year to 2014.

"SOP posted 355,876 tonnes of fresh fruit bunches (FFB) production in the first half of this year, which met just 38 per cent of our previous 2012 forecast due to tree stress," it said in a research note today.

Despite trimming 2012 FFB forecast for SOP by four per cent, Maybank IB still expected the company to produce a decent-11 per cent FFB growth for 2012. The research house said SOP is aiming for a stronger production outlook in the second half of this year, judging from the fruit formations on the oil palm trees and coupled with a 9,500 hectares coming into maturity throughout this year.

"Following the adjustments to our FFB assumptions, we have lowered our financial year 2012 net profit estimate by six per cent, while Financial year 2013 and 2014 estimates remain unchanged," it added.