AmBank Research has downgraded the plantation sector from Overweight to Neutral, citing challenges for downstream oleochemicals due to slowing demand, Indonesian competition, a weaker Rupiah, Chinese oversupply, and industry excess. The firm prefers upstream-focused planters, downgrading Kuala Lumpur Kepong (KLK) and IOI Corporation to Hold with target prices of RM21.71 and RM4.05, respectively. SD Guthrie remains a Hold at RM4.28. Genting Plantations (RM5.84), Johor Plantations (RM1.67), and TSH Resources (RM1.38) retain Buy ratings, leveraging their upstream strength amid a three-month U.S. tariff pause.
Plantation sector
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