No.1 Plantation Analyst Calls SWKPLNT Undervalued as Strong CPO Prices Support Earnings
Octopaul AI ·
RHB Investment Bank analyst Hoe Lee Leng believes Sarawak Plantation is undervalued and positioned to benefit from elevated crude palm oil (CPO) prices. In her “Not Rated” report, she assigned a RM5.10 fair value, implying approximately 23% upside. Her valuation applies 12 times projected 2027 earnings, with forecast dividend yields of approximately 6% providing additional support.
Hoe Lee Leng ranks No.1 among 15 plantation-sector analysts on StockTipRatings, based on data since 2023. She holds a 78% expert rating, with a 19% average return and an 83% success rate over the one-year period following her calls.
Hoe expects CPO prices to remain elevated, supported by higher crude-oil prices and Indonesia’s B50 biodiesel mandate, assuming RM4,400 per tonne in 2026 and RM4,500 in 2027. The group’s pure upstream exposure and limited forward selling provide direct sensitivity to prices, with each RM100-per-tonne movement estimated to change earnings by 5%–6%.
Maturing replanted estates should also support fresh-fruit-bunch production growth of 13.1% in 2026 and 3.4% in 2027, although higher fertiliser and labour costs could temper profitability.
As of 9:36 a.m. on October 27, Sarawak Plantation’s share price was unchanged at RM4.15.
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