13/1/07 (The Star) PETALING JAYA  -  Plantation players and analysts believe the floods that hit Johor last month was just a blip for the sector, particularly for companies with land in Johor, and business for them was largely unaffected.

OSK Securities plantation analyst Alvin Tai, when contacted by StarBiz, said there was always the possibility of another round of flooding, given the continuation of the rainy season, but emphasised the effect would not be severe.

“The first round of floods has subsided and things were fine for companies like Kulim (M) Bhd and Tradewinds Plantation Bhd, which we think might have been affected by flooding in areas like Kota Tinggi and Kluang. 

“That is assuming they were affected at all. These are good companies and the floods would not have had extreme effect on them,” said Tai.

He said the floods had hit crop production for December, but added that December had seasonally been a low-production month for Peninsular Malaysia, typically 30% lower than November.

“We do expect harvest to spike up in January, since the floods made harvesting difficult last month. Harvest normally peaks around March or April,” Tai said.

Another a bank-backed research house analyst said the floods would not have a significant impact on the earnings of Asiatic Developments Bhd. 

She said a PPB Oil spokesman had also told her that the company was not affected, and palm oil produce could not have been affected much as these plantations were normally at hilly areas.

“From what we have heard, plantation companies with land in Johor said they were all right overall, so we think it is not an issue,” the analyst said.