SD Guthrie FY2025 Earnings Seen Firm, Softer In Second Half - Analysts

KUALA LUMPUR, Aug 8 (Bernama) -- Kenanga Investment Bank Bhd (Kenanga IB) expects SD Guthrie Bhd’s financial year 2025 (FY2025) earnings to remain robust, although performance in the second half (2H) may ease slightly.

In a note today, the research house said crude palm oil (CPO) prices, which eased in the second quarter (2Q), are likely to soften further in 2H but should remain supported by tight global edible oil supply in 2025, and increasingly so in 2026, despite a higher output outlook.

“Second-half profits are expected to stay healthy on firm palm oil prices despite the seasonally stronger harvest,” it said.

SD Guthrie’s net profit for the second quarter ended June 30, 2025, rose 22 per cent to RM505 million from RM415 million a year earlier, driven mainly by stronger upstream contributions that offset weaker downstream earnings.

Quarterly revenue increased to RM5.17 billion from RM4.97 billion.

Meanwhile, MBSB Investment Bank Bhd said Guthrie Bhd’s 2H 2025 earnings may taper as CPO prices are expected to normalise during the peak production period, following a build-up in closing stockpiles.

CIMB Securities Sdn Bhd also expects plantation earnings in 2H to be lower than in the first half, citing softer CPO prices.

Kenanga IB maintained a ‘market perform’ rating on SD Guthrie, raising its target price (TP) to RM4.80 from RM4.77. CIMB Securities upgraded the stock to ‘Buy’ from ‘Hold’ with a higher TP of RM5.15 from RM5.06, while MBSB Investment maintained a ‘Buy’ call with an unchanged TP of RM5.43.

-- BERNAMA