BIMB Research keeps plantation sector overweight as CPO prices seen firm at RM4,200–RM4,800 per tonne in 2H26
AI Market Summary
BIMB Research reiterated an overweight view on plantations as crude palm oil prices are expected to stay firm in 2H26, supported by stronger biodiesel mandates, tighter palm oil balances, and potential El Nino-related supply risks. While 1Q26 profits weakened on seasonal output and higher costs, earnings are expected to improve from 2Q26. Indonesia's new export reporting framework appears to have limited near-term earnings impact, though regulatory monitoring remains key.
Impact level
● Medium
Affected assets
NCCOCOTTON2USD/USDT+3.03%
AI Insight · NCCOCOTTON2USD/USDTAI Insight
▲ Bullish
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BIMB Research maintained an “overweight” rating on the plantation sector and expects crude palm oil (CPO) prices to stay volatile but firm in 2H26, trading in the RM4,200 to RM4,800 per tonne range and averaging around RM4,500. It sees support from stronger global biodiesel blending mandates, a potentially tighter palm oil supply-demand balance and El Nino risk in 2H26 that could curb output growth. While aggregate 1Q26 core net profit for companies under its coverage fell 7% year-on-year, it expects earnings to improve progressively from 2Q26 onward, according to the research house.
