Sarawak Oil Palms Berhad (SOP) posted a strong performance in its second quarter of 2024, with core profit after tax and minority interest (PATMI) surpassing expectations. The company's earnings were bolstered by improved average selling prices (ASP) and increased fresh fruit bunch (FFB) production, while lower unit costs further contributed to the positive results. Despite this strong performance, analysts anticipate a softer second half of the year due to expected lower ASPs and higher costs. SOP is currently valued attractively at 4.4 times its FY24 estimated price-to-earnings ratio (PER) after excluding its net cash position.
Maybank and RHB broking houses have maintained a positive outlook on SOP, with recommendations to BUY. Analysts from different banks have adjusted their target prices upward, reflecting their confidence in the company's prospects. A higher target price of RM4.10 was set, representing a 49% potential upside. Another analyst increased its target price to RM3.60, predicting a 28% return. The company's earnings for the first half of 2024 have already met a significant portion of full-year forecasts, supporting the optimism for its future performance.
For the second quarter of 2024, SOP's core PATMI reached RM104 million, marking a 133% year-on-year increase and a 34% rise quarter-on-quarter. This brought the company's core PATMI for the first half of the year to RM181 million, almost doubling the figures from the same period last year. The earnings growth was driven by a combination of higher FFB output, which increased by 11% year-on-year, and a 5% year-on-year increase in palm oil products' ASP. Additionally, the company managed to reduce its all-in operating cost of production to RM1,980 per tonne, a 28% decrease from the previous year.
SOP's downstream segment also showed improvement, with management guiding that the segment remained profitable in the second quarter, and expectations are set for continued positive performance throughout the year. The company's second refinery, which produces higher quality oils, is expected to sustain this trend, despite competitive pressures from Indonesian players with advantageous tax structures. SOP's refining utilisation rate is projected to remain robust at 75%.
Looking ahead, SOP's production outlook remains solid, with a projected full-year FFB output growth of 8%, adjusted slightly upward from previous estimates. Despite potential weather-related challenges, the company's fertiliser application is expected to stay on track, which should help maintain lower unit costs. SOP also declared an interim dividend of 4 sen per share, representing a 19% payout ratio, underlining its strong cash position and commitment to returning value to shareholders.
Source: Maybank, RHB
Title: Another sequential beat, Undervalued Performer; Maintain BUY
Sarawak Oil Palms Berhad (SOP)2024年第二季度業績強勁,稅後和少數股東權益後核心利潤(PATMI)超出預期。平均銷售價格(ASP)的提高和新鮮水果束(FFB)產量的增加提振了該公司的收益,而較低的單位成本進一步推動了積極的業績。儘管表現強勁,但分析師預計,由於預計ASP下降和成本上漲,下半年業績將更加疲軟。扣除淨現金狀況後,SOP目前的估值爲24財年估計市盈率(PER)的4.4倍,極具吸引力。
馬來亞銀行和印度盧比經紀行對SOP保持樂觀展望,建議買入。來自不同銀行的分析師向上調整了目標價格,這反映了他們對公司前景的信心。設定了更高的目標價爲4.10令吉,這意味着49%的潛在上漲空間。另一位分析師將其目標價格上調至3.60令吉,預計回報率爲28%。該公司2024年上半年的收益已經達到全年預期的很大一部分,這支持了對其未來業績的樂觀情緒。
2024年第二季度,SOP的核心PATMI達到10400萬令吉,同比增長133%,同比增長34%。這使該公司上半年的核心PATMI達到181萬令吉,幾乎是去年同期的兩倍。收益增長是由FfB產量的增加(同比增長11%)和棕櫚油產品的ASP同比增長5%共同推動的。此外,該公司設法將其總運營成本降低至每噸1,980令吉,比上年下降了28%。
SOP的下游板塊也有所改善,管理層指導該細分市場在第二季度保持盈利,預計全年將持續保持積極表現。儘管擁有有利稅收結構的印度尼西亞參與者施加了競爭壓力,但該公司的第二家煉油廠生產更高質量的石油,預計仍將保持這一趨勢。預計SOP的煉油利用率將保持在75%的強勁水平。
展望未來,SOP的產量前景依然穩健,預計全年FfB產出增長8%,較先前的估計略有上調。儘管存在與天氣相關的潛在挑戰,但該公司的化肥應用預計將步入正軌,這將有助於保持較低的單位成本。SOP還宣佈派發每股4仙的中期股息,派息率爲19%,這突顯了其強勁的現金狀況和對股東回報價值的承諾。
資料來源:馬來亞銀行、RHB
標題:又一次連續上漲,表現被低估;維持買入