"Golden Agri-Resources is fairly valued, trading at 9x FY2026x, at the high end of its peer range of 6-11x 2026F P/E," they add, while maintaining the group's ESG score at 2.6 out of 4 and rolling forward valuation target to FT2026 and update its downstream book value and plantation EV/ha.
Thus far, RHB notes that spot CPO prices have moderated from RM4,600-RM4,800/tonne in 1Q2025 to a low of RM3,780 in May, only to bounce back to RM3,900-RM4,100 currently. The decline was mainly driven by geopolitics in the light of US trade tariffs, wars and crude oil prices falling as a result, all of which pushed CPO prices in the same direction.
On the outlook, RHB expects CPO prices to remain volatile given the ever-changing geopolitical situation. Fundamentally however, global supply and demand will likely be more balanced in 2026, as supply improves, while demand should pick up given the more attractive relative prices, the firm believes.
As at 11.25am, shares in Golden Agri-Resources are trading at 25 cents.
