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New Straits Times
3 days ago
- Business
- New Straits Times
MARKET PULSE PM MAY 29, 2025 [WATCH]
KUALA LUMPUR: News on stock, crypto and ringgit moves. Bursa Malaysia's 30-stock index ended lower, dragged by profit-taking in heavyweight banking counters amid subdued market sentiment, despite strong gains across North Asian markets and Australia. The ringgit also weakened against the US dollar, slipping to 4.2370. In the cryptocurrency market, Bitcoin maintained its upward momentum, reaching RM460,576. Ethereum and Solana also followed the positive trend, rising to RM11,570 and RM734, respectively. That wraps up today's Market Pulse.
New Straits Times
08-05-2025
- Business
- New Straits Times
SD Guthrie's Q1 earnings meet expectations; HLIB ups forecasts on normalisation outlook
KUALA LUMPUR: SD Guthrie Bhd's earnings in the first quarter ended March 31, 2025 (Q1 2025) came in within research firms' expectations, as its earnings are expected to normalise in coming quarters due to lower crude palm oil (CPO) prices. Hong Leong Investment Bank Bhd (HLIB) raised its earnings forecasts for the company by 4.8 per cent, 6.4 per cent and 4.5 per cent for financial years 2025 (FY25), FY26 and FY27, respectively. The higher forecasts reflect higher pre-tax earnings margin assumptions for SD Guthrie at the downstream segment and the recalibration of the earnings model. It also remained optimistic on the company achieving fresh fruit bunch (FFB) output growth for FY25, driven primarily by sustained recovery in Indonesia and Papua New Guinea. "That said, uncertainties persist over the pace of recovery for Malaysia due to continued adverse weather conditions," said the firm. HLIB maintained a 'Buy' call on the stock with a higher target price (TP) of RM5.17. SD Guthrie's net profit in Q1 2025 more than doubled to RM550 million, boosted mainly by marginally higher FFB output, higher realised palm product prices, and lower finance costs. In a separate note, RHB Investment Bank Bhd (RHB Research) also considered SD Guthrie's earnings to be in line with its expectations in light of the moderating CPO prices. It noted output should improve in the coming quarter ahead of the peak output season in the second half of 2025. "We still like SD Guthrie for its new earnings catalyst, coming from land monetisation and the renewables segment," it said. It added that SD Guthrie's downstream margin slipped to 1.8 per cent in quarter-on-quarter, mainly due to weaker profits at its bulk segment as a result of margin compression and lower demand. "While SD Guthrie expects margins to recover in the coming quarters, we choose to remain wary and trim our FY25-27 margin assumption accordingly." The firm maintained 'Buy' on SD Guthrie with a TP of RM5.65. Meanwhile, CIMB Securities maintained its earnings forecasts for SD Guthrie, which took into account weaker earnings in the upcoming quarters. It said that the CPO price for July delivery on the Bursa Derivatives market is currently trading at RM3,754 per tonne, which is about 17 per cent lower than the RM4,576 per tonne achieved by SD Guthrie in Q1 2025. Given the lack of near-term catalysts, the firm downgraded its call on the stock to 'Hold' from 'Buy" with a lower TP of RM5.06 from RM5.50 previously. "We expect CPO prices to trend lower in Q2 2025 and Q3 2025 and are cautious that the recent US reciprocal tariffs could dampen demand for processed palm oil and delay land monetisation plans," it said.
The Sun
07-05-2025
- Business
- The Sun
SD Guthrie first-quarter net profit surges 169% year-on-year to RM567 million
PETALING JAYA: In a strong start to the financial year, SD Guthrie Bhd, formerly known as Sime Darby Plantation Bhd, registered a net profit of RM567 million in the first quarter of its financial year ending Dec 31, 2025 (Q1'25), an increase of 169% from RM211 million in the corresponding period of 2024 (Q1'24). The group's profit before Interest and tax (PBIT) increased 118% to RM818 million year-on-year (y-o-y), underpinned by the robust performance of the upstream segment, which mitigated the decline in the downstream segment. The upstream segment gained from higher y-o-y average realised crude palm oil (CPO) and palm kernel (PK) prices, as well as increased fresh fruit bunch (FFB) production. The group's realised CPO and PK prices averaged RM4,576 and RM3,342 per metric ton (MT) respectively, a corresponding increase of 18% and 72%. FFB production in the group's Indonesian operations rose by 11% while production in Papua New Guinea and Solomon Islands improved by 10%, cushioning the 7% decline in the group's Malaysian operations. SD Guthrie International (SDGI), the group's downstream arm, recorded a lower PBIT of RM76 million in Q1'25, representing a 37% y-o-y decline. SDGI's performance was impacted by lower margins in the bulk and differentiated product segments, as well as weaker demand in its European and trading operations. This, however, was partially mitigated by better performance and higher profits from its Asia-Pacific operations. Chairman,Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said: 'The uncertain operating environment, due to persistent inflationary pressures fuelled by volatile monetary and trade policies, as well as continuing geopolitical tensions, presents challenges that the group will navigate with caution over the short and medium terms. Despite this, I firmly believe the group has the necessary resilience and capability to face headwinds, just as we have in the past, underscoring the wealth of experience and unwavering commitment of our management and employees.' Group managing director Datuk Mohamad Helmy Othman Basha said: 'The group kicked off the year on a strong note, as reflected by our solid performance, driven by ongoing efforts to enhance operational excellence. As the year progresses, we are cognisant of prevailing economic and geopolitical conditions that may require strategic shifts to keep the group on track for a strong FY2025.' On a positive note, he added that its industrial park growth pillar has attained a milestone with the recent signing of a tripartite agreement for the development of the group's prime land in Bukit Pelandok, Negeri Sembilan, within the country's Malaysia Vision Valley 2.0 growth area. The company said the CPO price is expected to soften in the near term mainly due to a rebound in palm oil production as a result of improved weather conditions. Furthermore, demand from biodiesel blending is expected to weaken given the current low crude oil price environment. Whilst tariffs announced by the United States may have minimal direct impact on Malaysian CPO, it has created uncertainty and volatility of prices across all vegetable oil markets. In addition to price uncertainty, the potential disruption in the global supply chain could further lead to an overall increase in operational costs. Amid rising market volatility, the group expects modest improvement in FFB production, driven by its ongoing operational excellence and yield-enhancing initiatives. While remaining vigilant to potential regulatory changes and international trade developments that could impact broader macroeconomic conditions, SD Guthrie believes that there are opportunities to expand its downstream footprint. It remains committed to pursuing growth opportunities surrounding its new business pillars of industrial park development and renewable energy. The group remains focused and resilient in delivering its performance in FY2025 and maintains a cautious outlook on the back of a challenging and unpredictable environment.
New Straits Times
07-05-2025
- Business
- New Straits Times
SD Guthrie's Q1 net profit soars to RM567mil on strong upstream performance
KUALA LUMPUR: SD Guthrie Bhd's net profit more than doubled to RM567 million in the first quarter ended March 31, 2025 (Q1 2025) from RM211 million in Q1 2024 backed by robust performance of the upstream segment. Revenue for the period climbed 11 per cent year-on-year (YoY) to RM4.82 billion compared to RM4.34 billion a year ago. The upstream segment gained from higher YoY average realised crude palm oil (CPO) and palm kernel prices, as well as increased fresh fruit bunch (FFB) production. The group's realised CPO prices averaged RM4,576 per tonne, an increase of 18 per cent, while palm kernel prices jumped 72 per cent to RM3,342 per tonne. It noted that FFB production in the group's Indonesian operations rose 11 per cent, while production in Papua New Guinea and the Solomon Islands improved by 10 per cent, cushioning the seven per cent decline in the Malaysian operations. Meanwhile, the group's downstream arm SD Guthrie International (SDGI) logged a lower pre-tax profit of RM76 million in the quarter, down 37 per cent YoY. SDGI was impacted by lower margins in the bulk and differentiated product segments, as well as weaker demand in its European and trading operations. This was partially mitigated by better performance and higher profits from its Asia Pacific operations. SD Guthrie chairman Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said the group will remain cautious over the short and medium term amid the uncertain operating environment due to persistent inflationary pressures fuelled by volatile monetary and trade policies, as well as continuing geopolitical tensions. "Despite this, I firmly believe the group has the necessary resilience and capability to face headwinds, just as we have in the past, underscoring the wealth of experience and unwavering commitment of our management and employees," he said in a statement. Moving forward, the group remains focused and resilient in delivering its performance this year. CPO price is expected to soften in the near term mainly due to a rebound in palm oil production as a result of improved weather conditions. Additionally, demand from biodiesel blending is expected to weaken given the current low crude oil price environment. "As the year progresses, we are cognisant of prevailing economic and geopolitical conditions that may require strategic shifts to keep the group on track for a strong 2025. "On a positive note, our industrial park growth pillar has attained a noteworthy milestone with the recent signing of a tripartite agreement for the development of the group's prime land in Bukit Pelandok, Negeri Sembilan, within the country's Malaysia Vision Valley 2.0 growth area," said group managing director Datuk Mohamad Helmy Othman Basha.
