UOB Kay Hian has maintained its “market weight” recommendation on the Singapore plantation sector upon improved y-o-y earnings in 1H20, and expectations of a better 2H20.
UOB Kay Hian analysts Leow Huey Chuen and Jacquelyn Yeow noted the reason behind most companies’ better 1H20 earnings was due to better selling prices despite lower sales volume and production.
This is except for Golden Agri Resources (GGR), which remained in net loss for 1H20 due to higher operating expense.
