KUALA LUMPUR: FGV Holdings Bhd's net profit sum of RM45.1 million in the first half of 2024 (1H24) came in within Hong Leong Investment Bank Bhd's (HLIB Research) expectations but below consensus'.
It formed 45.2 per cent of HLIB Research's full-year estimates but only 24.4 per cent of consensus'.
The research firm expects FGV Holdings' 2H24 results to be stronger due to seasonally higher fresh fruit bunch (FFB) output.
"During the briefing, management expects FFB output growth to pick up further in 2H24, as it expects further productivity improvements from rehabilitation works carried out since last year," it said.
FGV registered FFB output growth of 6.5 per cent in 1H24, attributed to improved cropping patterns, extensive rehabilitation exercises in previous years, and improved labour availability, particularly in Peninsular Malaysia estates.
FGV's management is keeping its FFB output growth target of 10-15 per cent for the financial year (FY24).
It added year-to-date, higher realised palm product prices and FFB output, lower ex-mill crude palm oil production, improved performance at sugar and logistics, and support segments brought 1H24 into the black, with a core net profit of RM45.1 million.
HLIB Research maintained a "hold' call on the stock with a lower target price of RM1.30.