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Company Reports

28 February 2025

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Palm Oil Weekly (21 – 27 February 2025): Avg. CPO MYR 4,742 (-0.4% WoW)

  • In the last five trading days, CPO prices slipped -0.4% WoW, averaging MYR 4,742/MT, with weekly low on 27-Feb reaching MYR 4,692/MT, driven by expectations of production rebound in key regions.
  • CPO output is set to rise in 2Q as weather conditions improve, following 1Q supply constraints due to floods in Sabah and Sarawak. CPO production is expected to increase 2.5mn tons after the 1mn-ton decline last year, while soybean oil output is projected to grow +4mn tons, up from +2.5mn tons, as weather conditions in Brazil improve.
  • China’s vegetable oil consumption is expected to remain flat this year, offering no bullish catalyst for 2025. Additionally, post-Ramadan and Eid demand is projected to be relatively soft, further weighing on price momentum.
  • Given these conditions, our 2025 CPO price forecast of MYR 4,500/MT (YTD: MYR 4,500/MT, +7.2% YoY) may face downside risk. However, B40 program and CPO’s defensive nature could provide support. Stock-wise, NSSS (TP: IDR 350/sh) and TAPG (TP: IDR 1,050/sh) are our top picks, given their young plantation profiles (<10 years), which allow for higher crop and extraction yields.

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CPO - 21 - 27 February 2025

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CPO - 21 - 27 February 2025

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