RHB Research, HLIB and CIMB Securities have maintained BUY calls on Hap Seng Plantations Bhd, with target prices of RM2.95, RM2.88 and RM2.83 respectively, as analysts expect stronger fresh fruit bunch (FFB) output and firm crude palm oil (CPO) prices to lift earnings in the second half of 2026.
RHB said the plantation group’s first-half core earnings of RM77.7 million were within expectations, with earnings supported by a 23% year-on-year increase in CPO sales volume and higher CPO and palm kernel prices. It raised its target price to RM2.95 from RM2.60 after rolling forward its valuation base and updating CPO assumptions.
HLIB also deemed the results within expectations and raised its FY26 to FY28 core earnings forecasts by 3.8%, 4.3% and 4.2% respectively, citing higher CPO price assumptions. It kept its RM2.88 target price unchanged.
Meanwhile, CIMB raised its FY26 and FY27 earnings forecasts by 11% and 3% respectively, lifting its target price to RM2.83 from a higher fresh fruit bunch production assumption and stronger CPO price forecasts.
The analysts expect production to strengthen towards the end of the year, with management guiding that FFB output could peak in the fourth quarter. RHB noted that 7M26 FFB production had risen 6.8% year-on-year, although it remained below management’s full-year target.
CIMB also highlighted Hap Seng Plantations’ RM782 million net cash position and estate valuations below prevailing market levels, while noting potential catalysts from stronger CPO prices, higher FFB output and improved dividend payouts.
As of 11.04 am, the stock price gained 1.18% to RM2.57.
