12/09/2011 (Bernama) - OSK Research continued to like Sarawak Oil Palms Bhd (SOP), which will be included in the FTSE Bursa Malaysia Mid 70 Index from today, as it has one of the most favourable tree age profiles within their plantation universe.

SOP will be listed in the Mid 70 counters to replace EON Capital following completion of Hong Leong Bank's acquisition. The company was previously included in the FTSE Bursa Malaysia Small Cap Index.

In a investment research note today, OSK said the company saw the first half financial year 2011 fresh fruit bunch production surge 30.3 per cent year-on-year.

"SOP is also one of the few plantation companies that registered quarter-on-quarter earnings growth in the second quarter financial year 2011 despite lower palm oil prices," it said.

Sorting the FBM Bursa Malaysia Mid 70 Index members based on their respective full market capitalisation, OSK said SOP would be the 52nd largest company on the index, with a market cap of RM1.83 billion.

OSK maintained a "buy" call on SOP and retained its fair value at RM5.67.

At 11.58am, SOP added two sen to RM4.32, after opening at RM4.30.