We detected strong interests during our 1.5 days marketing the regional plantation sector to investors in Taiwan. Most are keen to find out what triggered the recent rise in CPO prices and the potential impact of Indonesia's biodiesel mandate on palm oil demand.
However, following the recent share price outperformance by some planters, investors are also keen to take profit. We share our concern on the potential challenges in meeting Indonesia's biodiesel targets and views on CPO prices. Our Neutral call on the sector is intact as we feel that most stocks have priced in the higher CPO prices. We prefer Singapore planters, which offer the best values at the current levels.
Read more »