InfoSAWIT, KUALA LUMPUR — Hong Leong Investment Bank (HLIB) has maintained its crude palm oil (CPO) price assumption at RM4,200 per metric tonne, along with its 2026 earnings projections, while awaiting further clarity on Indonesia’s decision to delay the implementation of the B50 biodiesel mandate.
In its latest research note, HLIB stated that the financial performance of plantation companies under its coverage for the fourth quarter of financial year 2025 is expected to remain broadly in line with market expectations. However, on a year-on-year basis, upstream earnings are projected to weaken.
“On a quarter-on-quarter basis, earnings are expected to be mixed, reflecting uneven fresh fruit bunch (FFB) production trends, while downstream operations continue to face challenges,” HLIB noted, as quoted by InfoSAWIT from Bernama, Sunday (8/2/2026).
HLIB also observed that stronger stockpiling activity ahead of major festive periods, coupled with seasonally lower production, has pushed CPO prices up by about 4% to RM4,134 per metric tonne since January 26. As a result, the year-to-date average CPO price stands at approximately RM4,050 per tonne. (T2)
