Johor Plantations' Shares Slid By 5.85 Pct In Early Trade
KUALA LUMPUR, Aug 19 (Bernama) -- Johor Plantations Group Bhd’s (JPG) share price fell 5.85 per cent in early trade on Wednesday, after registering a lower net profit for the second quarter ended June 30, 2026 (2Q 2026).
At 10.54 am, its shares slid 12 sen to RM1.93, with 7.05 million shares traded.
The palm oil producer posted a lower net profit of RM51.15 million in 2Q 2026 from RM75.20 million in the same period a year ago.
It said the soft performance was mainly due to higher cost of sales, partially offset by higher average crude palm oil (CPO) and palm kernel (PK) selling prices.
However, the company’s revenue for the quarter under review increased by 4.4 per cent to RM415.84 million from RM398.29 million previously, driven by strong sales of CPO.
In a note, MBSB Investment Bank Bhd (MBSB IB) said despite the softer-than-expected results, it saw room for an earnings recovery in 3Q and 4Q 2026 as fresh fruit bunch (FFB) output catches up following the weaker first half of 2026 (1H 2026) performance.
“Better production should improve fixed-cost absorption, with cost of production expected to gradually normalise by 4Q 2026.
“Coupled with supportive CPO prices, this should pave the way for a decent finish to FY2026,” the bank said.
MBSB IB maintained its “buy” call on JPG, with a revised target price of RM2.21.
Meanwhile, RHB Investment Bank Bhd said it expected FFB production to recover in 2H 2026, in line with the seasonal production peak; CPO prices should improve quarter-on-quarter.
“We maintain our cost growth forecast of 5 to 10 per cent for financial year 2026 (FY2026) to FY2028, premised on higher 2H 2026 production volumes, and maintain our “buy” call on the company with a new target price of RM2.20," the bank said.
-- BERNAMA