MARKET DEVELOPMENT
CIMB Research: Sarawak Timber, Palm Oil Players Positive on Outlook
CIMB Research: Sarawak Timber, Palm Oil Players Positive on Outlook
16/04/2014 (The Star) - CIMB Equities Research says Sarawak planters offer one of the highest output growth prospects among the Malaysian planters and its current top pick in this category is Ta Ann.
It said on Wednesday it recently visited three of Sarawak's largest listed timber/planters by market capitalisation Jaya Tiasa, Ta Ann Holdings, Sarawak Oil Palms to get an update on the timber industry's prospects; and better understanding of the local issues and prospects of palm oil businesses in Sarawak.
“During our three-day trip, we visited three oil palm estates, two mills and a refinery,” it said, adding its channel checks with Sarawak timber/palm oil players revealed they are positive on timber production and prices for 2014.
“They expect double-digit FFB output growth from their estates in 2014; and their crude palm oil (CPO) sales to Wilmar have not been interrupted by its new sourcing policy,” it said.
CIMB Research said it would turn more favourable on Jaya Tiasa, if it is able to raise its fresh fruit bunches (FFB) yield achievement.
“We keep our Neutral rating on the regional planters and our other top picks in the region are First Resources, Wilmar, Astra Agro and London Sumatra,” it said.
It said on Wednesday it recently visited three of Sarawak's largest listed timber/planters by market capitalisation Jaya Tiasa, Ta Ann Holdings, Sarawak Oil Palms to get an update on the timber industry's prospects; and better understanding of the local issues and prospects of palm oil businesses in Sarawak.
“During our three-day trip, we visited three oil palm estates, two mills and a refinery,” it said, adding its channel checks with Sarawak timber/palm oil players revealed they are positive on timber production and prices for 2014.
“They expect double-digit FFB output growth from their estates in 2014; and their crude palm oil (CPO) sales to Wilmar have not been interrupted by its new sourcing policy,” it said.
CIMB Research said it would turn more favourable on Jaya Tiasa, if it is able to raise its fresh fruit bunches (FFB) yield achievement.
“We keep our Neutral rating on the regional planters and our other top picks in the region are First Resources, Wilmar, Astra Agro and London Sumatra,” it said.