OSK lifts Sarawak Oil earning estimates (5126)

OSK Research has upgraded Sarawak Oil Palms Bhd's (SOP) financial year
2013 (FY13) estimated earnings to RM314.1 million, up 5.7 per cent from
RM297.1 million previously.

In a note today, OSK said the
upward revision followed its 2013 average crude palm oil price
assumption upgrade to RM3,500 per tonne, which led to positive
financial year 2013 earnings adjustments across its plantation universe.

"Following our upgrade to overweight on the plantation sector on
expectations of an El Nino lifting prices in 2013, we raise our FY13 earnings estimates by six per cent," it said.

OSK
said said as SOP's production was lacklustre in first half of this
year, it has FY12 fresh fruit bunch production growth forecast and FY12
earnings estimates by eight per cent.

"Despite our forecast
changes and a likely challenging second quarter FY12 earnings
performance, the company is still trading at an attractive 13.4 times
FY12 price earnings ratio (PER) and 9.5 times FY13 PER.

"SOP
continues to be a 'buy' and our top Malaysian sector pick for its
strong growth prospects and solid management expertise," it said. --
Bernama