has locked in forward sales for 50% of its monthly production up to June this year at a price of about RM3,000 per tonne.
Kenanga Research, in a note, said it had met up with the company’s management and felt “more optimistic on its long-term prospects.’’
It said the company expected financial year (FY) ending April 30,2021 to 2022 fresh fruit bunch (FFB) growth of 12%-15%/10%-12% (versus the research house’s estimates of +10%/+4%).
This growth will be driven by abundant rainfall and better yields from its Indonesia estates as its young age profile improves.
It said the upside to its FFB growth estimate is the key positive takeaway from its meeting with the management.