Table of Contents
Valuations & recommendations..............................................3
Sector rally partly driven by domestic liquidity...........................................................3
...industry fundamentals are also supportive................................................................4
PT changes; a PE multiple-expansion justified? ..........................................................4
Key risks to PTs...........................................................................................................5
Stock recommendations ...............................................................................................5
Regional valuation comparison....................................................................................7
CPO prospects for 2H09/2010 .................................................8
Shorter-term bearish factors.........................................................................................8
More bullish drivers by 4Q09/1Q10 ............................................................................9
El Nino signs still developing ....................................................................................10
Stable to higher crude oil prices is an added catalyst.................................................10
Cost pressures have abated ........................................................................................11
Appendix .................................................................................13
Companies
Kuala Lumpur Kepong ..............................................................................................18
Sime Darby Berhad....................................................................................................24
IOI Corp.....................................................................................................................31
Genting Plantations....................................................................................................37