Brokers' take

Plantation - Singapore | Market weight UOB Kay Hian, May 22

FIRST-QUARTER results are disappointing. All the companies under our coverage, except Bumitama Agri Ltd, reported weaker-than-expected Q1 2018 results. This was mainly due to either lower-than-expected production in the first quarter, or lower sales volumes, with volumes to be delivered in the second quarter instead.

Production and sales volumes are likely to play catch-up in the subsequent quarters but overall sector performance will still be dragged down by a weaker crude palm oil average selling price and hence lead to lower earnings year-on-year.