PLANTATION - (OVERWEIGHT Maintained) Beneficiaries of High-Speed Rail Project

The High Speed Rail (HSR) project is set to benefit plantation companies with oil palm estates near its stations, notably SD Guthrie (SDG), Genting Plantations (GenP), Johor Plantations (JPG), and Kuala Lumpur Kepong (KLK), based on the original HSR alignment.

Plantation sector

GenP also has two property projects in Johor. While IOI Corporation and Kim Loong Resources have estates in Johor, they are distant from the HSR route.

Analysts recommend BUY for GenP (RM7.55), JPG (RM2.00), and KLK (RM26.55), but HOLD for SDG due to high PE valuations. The plantation sector remains Overweight, supported by tight supply and a 2025 CPO price forecast of RM4,250/tonne. AmBank

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