KUALA LUMPUR (Nov 13): Hap Seng Plantations Holdings Bhd (KL:HSPLANT) is likely to report better earnings in the recently-ended quarter, thanks to higher palm oil output, said CIMB Securities.
Net profit after excluding any extraordinary items is expected to come in at RM38 million to RM41 million for the three months ended Sept 30, 2025, according to the research house’s forecast. That compares to RM30 million recorded in the second quarter and RM44 million in the third quarter last year.
“Earnings are also expected to benefit from stronger palm product prices,” CIMB Securities said. On a year-on-year basis, “earnings are likely to be weaker owing to lower output”, the house said in a note.
Hap Seng Plantations is scheduled to release its results on Nov 19.
Fresh fruit bunch production at the company totalled 150,394 tonnes in the third quarter, an increase of 4% from the second quarter. The average crude palm oil price for Sabah rose 5.8% to RM4,247 per tonne while palm kernel rose 4.6% to RM3,291 per tonne.
Shares of Hap Seng Plantations have racked up more than 17% gain since the start of 2025 boosted in part by elevated crude palm oil prices.
CIMB Securities maintained its ‘buy’ rating and raised its target price to RM2.45 after lifting its palm oil price assumptions and applying a higher estate valuation.
Hap Seng Plantations has eight ‘buy’, two ‘hold’ and no ‘sell’ calls from research houses, according to Bloomberg data. The consensus 12-month target price stands at RM2.37, implying a 7.7% upside from current levels.
Overall, CIMB Securities expects Hap Seng Plantations to make a net profit of RM150 million this year. The house also likes its dividend yield of over 5% and its strong balance sheet.