SD Guthrie's 2H Earnings Likely to be Flattish

Dow Jones08-12

0103 GMT - SD Guthrie's 2H earnings are expected to be broadly flattish from 1H, with stronger plantation earnings mitigating lower industrial development profits, Maybank IB analyst Ong Chee Ting says in a note. Despite a 2% on-year decline in 1H fresh fruit bunches, SD Guthrie continues to guide for positive production growth of 5% for 2026, as El Nino may only affect output in 2027, he says. Separately, SD Guthrie will sell 556.96 acres of freehold land to Sime Darby Property for 418.5 million ringgit, which is expected to generate a 373 million ringgit gain and provide 2027 earnings visibility, he adds. Maybank downgrades SD Guthrie's rating to hold from buy as positives are likely priced in, and maintains a 7.10 ringgit target price. Shares are 0.1% higher at 6.92 ringgit.

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