0319 GMT - SD Guthrie's 2025 earnings outlook remains strong, driven by firm palm oil prices and improving upstream performance, Kenanga IB analyst Khoo Teng Chuan says in a note. CPO prices are expected to average MYR4,200/ton in 2025, higher than the previously expected MYR4,000/ton. Better fruit yields and lower fertilizer costs should help contain unit costs despite wage inflation, he says. While downstream demand may gradually recover, margins are expected to remain tight, he says. SD Guthrie is also expanding into renewable energy and industrial property developments, with contributions expected from 2026, he notes. Khoo raises SD Guthrie's 2025 core EPS forecasts by 5% due to higher CPO prices estimates. Kenanga raises the target price to MYR4.60 from MYR4.65, maintaining a market perform rating on the stock. Shares are 1.2% higher at MYR5.03. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
February 27, 2025 22:19 ET (03:19 GMT)
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