Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 3): Hong Leong IB Research has maintained its “Neutral”rating on the plantations sector and said it expects mixed set of results for 4Q15 with TSH Resources Bhd and Genting Plantation Bhd likely to report better quarter-on-quarter performance on the back of better FFB production growth.

In a note today, the research house said plantation companies with large exposure in Sabah have reported much weaker production growth as compared to others.

It added that companies with US dollar debt exposure are likely to report translation gains from the currency appreciation in this quarter.

“Marginal impact from foreign worker levy hike (about 1-3% of net profit) and we are maintaining our earnings forecast.

“We maintain Neutral on the plantation sector. Our top picks are Genting Plantation and CB Industrial Product Holding Bhd,” it said.

 

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