BIMB Research keeps plantation sector overweight as CPO prices seen firm at RM4,200–RM4,800 per tonne in 2H26
BIMB Research maintained an “overweight” rating on the plantation sector and expects crude palm oil (CPO) prices to stay volatile but firm in 2H26, trading in the RM4,200 to RM4,800 per tonne range and averaging around RM4,500. It sees support from stronger global biodiesel blending mandates, a potentially tighter palm oil supply-demand balance and El Nino risk in 2H26 that could curb output growth. While aggregate 1Q26 core net profit for companies under its coverage fell 7% year-on-year, it expects earnings to improve progressively from 2Q26 onward, according to the research house.