Affin Upgrades SDG to Buy as Upstream Recovery Drives 52% Jump in 3Q Core Profit

StockTipRatings · November 6, 2026

Affin Hwang Investment Bank analyst Nadia Aquidah upgraded SD Guthrie to “Buy” from “Hold”, raising her target price to RM6.90 from RM6.60, implying 15% upside. Its 3Q26 core net profit rose 52.3% year-on-year to RM693 million, supported by stronger upstream contributions. Nine-month core earnings of RM1.54 billion were largely within her expectations.

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​Nadia Aquidah ranks No.3 among 18 Affin Hwang Investment Bank analysts and No.4 among 15 plantation-sector analysts tracked on StockTipRatings, based on data since 2023. She holds a 74% expert rating, with a 19% average return and a 74% success rate over the one-year period following her calls.

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Sequentially, quarterly core profit increased 35.4%, driven by higher realised crude palm oil (CPO) prices and fresh-fruit-bunch production. Higher asset-disposal gains also supported nine-month reported earnings, although core earnings grew a more modest 1.9% after excluding one-off items. Nadia revised her forecasts to reflect asset disposals, industrial-park contributions, higher production costs and potential El Niño-related production pressure.

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Looking ahead, Nadia expects elevated Malaysian inventories to weigh on near-term CPO prices. However, global biodiesel mandates and the delayed impact of El Niño on palm-oil production should keep prices at relatively favourable levels. She forecasts core net profit of approximately RM2.07 billion in 2026 and RM2.15 billion in 2027, with the revised valuation offering sufficient upside to support her upgrade.

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As of 9:36 a.m. on November 6, SD Guthrie’s share price rose 0.2% to RM6.01.

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Disclaimer: All content is AI-aggregated from public sources for informational and educational purposes only. StockTipRatings.com does not constitute investment advice. Past performance and historical statistics are no guarantee of future returns.\

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