Sipef - Another strong year due to favorable palm oil prices
• The palm oil price is developing more favorably than anticipated, which is compensating for weaker than expected production volumes. • SIPEF guides for FY24 net profit to be close to last year, which means that we could raise our net profit estimates by a few million.• We stick to our view that SIPEF's valuation is too low (EV/hectare <8K) , given the favorable mid-term outlook for palm oil and lack of new hectares available. Buy reiterated with TP of EUR 74.Sipef is a holding company. Through its subsidiaries and associated companies, Co. is primarily engaged in the development and production of sundry commodities, including palm oil, palm kernels, tea, tropical fruits and flowers, bananas, pineapples, ornamental plants, guava, pepper and natural rubber. Palm oil, which is Co.'s most important commodity, is used within the cosmetics industry, in soaps and detergents, as a supplement to cattle and poultry feed, for production of protein, and for several other purposes. In addition, Co. provides management, marketing and consultancy services in the agro-industry.
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