KUALA LUMPUR: Higher palm product prices and stronger fresh fruit bunch (FFB) output are expected to boost upstream plantation earnings in the third quarter of 2025, said Hong Leong Investment Bank (HLIB).
“Firmer prices and seasonally higher yields will drive sequential improvement in planters’ upstream earnings,” HLIB noted.
Downstream operations, however, remain under pressure from refinery overcapacity in Indonesia and subdued oleochemical demand.
HLIB maintained its ‘overweight’ stance on the plantation sector, keeping its CPO price forecasts at RM4,300 and RM4,200 per tonne for 2025 and 2026, respectively. – BERNAMA
