Company Coverage
Genting Plantations (GENP MK): 1H26: Above Expectations; FFB Production Momentum To Sustain
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM5.60
RM6.10
8.8%
RM5.44
Analyst
Highlights
GENP’s 1H26 core net profit came in above expectations, at 52/56% of our/consensus full-year forecasts, driven by strong FFB production and
improved downstream performance.
Management revised up its FFB production growth guidance from 3-5% to 5- 10%, expecting the momentum to sustain in 2H26. However, the current dry weather condition in Indonesia could pose downside risk to next year’s production.
We raise our 2026-27 earnings forecasts by 8%/4% following an upward revision to our FFB production assumption. Maintain HOLD with a higher target price of RM6.10 (previously RM5.44), pegged to 13x 2027F PE.
Analysis
- Above expectations. Genting Plantations’ (GENP) 1H26 core net profit of RM203m (+14% yoy) beat our expectation, accounting for 52%/56% of our and consensus full-year estimates, driven by strong FFB production (+9% yoy) and better-than-expected downstream earnings.
- 2Q26 earnings more than doubled yoy to RM141.9m, mainly due to increased FFB production (+12%) and improved sales volumes in the downstream segment which helped to turn this segment profitable. Earnings rose sharply qoq due to higher realised CPO prices of RM3,758 per tonne (+4%) on top of seasonally stronger FFB production, as well as higher contribution from the property segment.
Highlights
GENP’s 1H26 core net profit came in above expectations, at 52/56% of our/consensus full-year forecasts, driven by strong FFB production and
improved downstream performance.
Management revised up its FFB production growth guidance from 3-5% to 5- 10%, expecting the momentum to sustain in 2H26. However, the current dry weather condition in Indonesia could pose downside risk to next year’s production.
We raise our 2026-27 earnings forecasts by 8%/4% following an upward revision to our FFB production assumption. Maintain HOLD with a higher target price of RM6.10 (previously RM5.44), pegged to 13x 2027F PE.
Analysis
- Above expectations. Genting Plantations’ (GENP) 1H26 core net profit of RM203m (+14% yoy) beat our expectation, accounting for 52%/56% of our and consensus full-year estimates, driven by strong FFB production (+9% yoy) and better-than-expected downstream earnings.
- 2Q26 earnings more than doubled yoy to RM141.9m, mainly due to increased FFB production (+12%) and improved sales volumes in the downstream segment which helped to turn this segment profitable. Earnings rose sharply qoq due to higher realised CPO prices of RM3,758 per tonne (+4%) on top of seasonally stronger FFB production, as well as higher contribution from the property segment.
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM5.60
RM6.10
8.8%
RM5.44
Analyst
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