Sime Darby Plantation – A record year in the making (SDPL MK, CP MYR3.96, U/G BUY, TP MYR4.47, Plantations)
9M21 core PATMI beat our/consensus expectations. We expect a decent 4Q21 core PATMI performance (on lofty CPO ASP) to help lift overall core PATMI for FY21E to above MYR2b (+107% YoY). We raise SDPL to BUY (from HOLD) given attractive upside to our revised RNAV-TP of MYR4.47 (previously MYR4.58) based on unchanged 0.45x RNAV peg. Upside catalyst to our FY22E DPS will come from successful disposal of some of its non-strategic assets/ estates.