马来西亚股票分析报告

9 July 2025

Sarawak Oil Palms (SOP MK)

Agriculture | Plantation

Solid Fundamentals, Appealing Valuation; Keep BUY

Forecasts and Valuation

Source: Company data, RHB

Overall ESG Score: 2.3 (out of 4)

E Score: 2.3 (GOOD)

S Score: 2.0 (MODERATE)

G Score: 2.7 (GOOD)

Please refer to the ESG analysis on the next page

See important disclosures at the end of this report

Sarawak Oil Palms

9 July 2025

Malaysia Company Update

Agriculture | Plantation

Emissions And ESG

Trend analysis

In 2024, Scope 1 emissions decreased to 189k tonnes of CO2 equivalents (2023: 269k tonnes of CO2 equivalents) but Scope 2 emissions also increased to 44k tonnes of CO2 equivalents (2023: 25k tonnes of CO2 equivalents). Additionally, SOP disclosed Scope 3 emissions for the first time.

Source: Company data, RHB

Latest ESG-Related Developments

Sustainability certification: As of end 2024, 100% of SOP’s operations are MSPO certified.

Traceability: as of end-2024, SOP managed to maintain 100% traceability to mills and achieved 94% traceability to plantation for its mills.

Reducing GHG emissions: SOP commits to reduce GHG emissions with the installation of methane capture systems at all seven POMs. (4 have been completed as at FY24) to reduce emissions at all mills.

ESG Unbundled

Overall ESG Score: 2.3 (out of 4)

Last Updated: 2 July 2025

E Score: 2.3 (GOOD)
While Sarawak Oil Palms is committed to no further development on peat areas, 45% of its landbank is still planted on peat. The company has reported a reduction in greenhouse gas (GHG) emission intensity since 2017 for its estates. The company is fully Malaysian Sustainable Palm Oil-certified for its mills and estates.

S Score: 2.0 (MODERATE)
Sarawak Oil Palms is committed to free, prior and informed consent for all its employees. Its fatality accident rate has remained low, while the lost time injury frequency rate continues to trend lower. The company has not had any major labour issues in the last two years.

G Score: 2.7 (GOOD)
30% of SOP’s board members are independent, and 40% of its members are women. Additionally, it provides full disclosure on director remuneration, which includes salaries and bonuses and on a named basis. The company has an in-house investor relations team and holds briefings regularly, embodying good transparency and disclosure practices.

ESG Rating History

Source: RHB

See important disclosures at the end of this report

Sarawak Oil Palms

9 July 2025

Malaysia Company Update

Agriculture | Plantation

Financial Exhibits

Source: Company data, RHB

See important disclosures at the end of this report

Sarawak Oil Palms

9 July 2025

Malaysia Company Update

Agriculture | Plantation

Figure 1: SOP’s progress on ESG factors

Note: *Referring to TTP at SOP mills
Source: Company data, RHB

Figure 2: Key assumptions

Source: Company data, RHB

See important disclosures at the end of this report

Sarawak Oil Palms

9 July 2025

Malaysia Company Update

Agriculture | Plantation

Recommendation Chart

Source: RHB, Bloomberg

See important disclosures at the end of this report

RHB Guide to Investment Ratings

Buy: Share price may exceed 10% over the next 12 months

Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain

Neutral: Share price may fall within the range of +/- 10% over the next 12 months

Take Profit: Target price has been attained. Look to accumulate at lower levels

Sell: Share price may fall by more than 10% over the next 12 months

Not Rated: Stock is not within regular research coverage

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