Golden Agri-Res

$Wilmar(F34.SG)$Golden Agri-Res(E5H.SG)$First Resources(EB5.SG)$Bumitama Agri(P8Z.SG)

☀️ Heat Wave on the Horizon: How to Play the Palm Oil Sector 🌴

In my previous post, I talked about how El Niño benefits palm oil stocks by creating a supply crunch.

Today, we are going to look into each of the major SGX-listed palm oil stocks. To understand exactly how they react to these changing weather patterns and where the best fundamental value lies.

Weather forecasts are pointing toward severe heat waves. For Palm oil industry, extreme heat dries up crop yields, tightens global supply, and sends Crude Palm Oil (CPO) prices soaring. 🚀

However not all palm oil stocks are created equal. You need to know who wins when supply drops:

⭐️ The Top Pick: First Resources (SGX: EB5) - S$3.28

As a pure-play upstream grower, its earnings are highly sensitive to rising CPO prices. Thanks to its recent ANJ acquisition, its expanded geographic footprint gives it excellent operational resilience to handle localized weather shocks

P/E: ~11.1x | Yield: ~4.5%

💰 The Income Pick: Bumitama Agri (SGX: P8Z) - S$1.68

Boasting high-yielding, mature estates, BAL captures massive upside from spot prices. Plus, their newly upgraded 60%–75% dividend payout framework makes it a premier passive income play.

P/E: ~14.0x | Yield: ~5.6%

🔄 The Value Play: Golden Agri-Resources (SGX: E5H)- S$0.27

Deeply discounted on paper, but currently navigating a heavy, expensive replanting cycle. A longer-term turn-around play.

🛡 The Defensive Hedge: Wilmar International (SGX: F34) - S$3.70

A massive downstream food giant. Higher CPO prices actually increase their input costs, meaning they act as a stable consumer-staple hedge rather than a direct weather play.

Which strategy fits your portfolio? Are you hunting for high dividend yields or timing a technical breakout on CPO spot prices? Let’s discuss below! 👇

Not financial advice. Do your DD.

🦎 IGGY MIDDAY BRIEF, 29 JUNE 2026

MORNING SESSION RECAP

STI opened at 5,201, above Friday’s 5,191 close. Early range is tight at 5,189 to 5,207, signalling no urgency to take direction on the second-last trading day of H1. Top actives are led by agricultural and consumer names rather than banks or REITs. My read is cautious consolidation near historic highs.

THREE STOCKS ON IGGY'S RADAR

👁 E5H Golden Agri-Resources, flat at S$0.270

High volume with no price movement suggests two-way flow at a contested level. Palm oil prices feed into regional food costs, while Brent crude sitting ~20–25% below last year’s peak has eased input costs. Whether this translates into margin recovery is the key question before considering it for income.

👁 Y92 ThaiBev, down S$0.010 at S$0.430

Early selling with over 10 million units traded. Earnings are Thailand-based, so SGD investors carry FX drag. With THB weakening alongside regional currencies against USD, income gets a quiet haircut before it reaches your account.

👁 A7RU Keppel Infrastructure Trust, down S$0.010 at S$0.535

SORA near cycle lows supports distribution coverage via cheaper floating-rate debt. The key question is whether yield is driven by contracted cash flows or balance sheet management. That distinction matters more in a low-rate environment.

MACRO PULSE CHECK

No Singapore data in focus. US futures not yet clear. Backdrop unchanged: STI near highs, SORA near lows, Brent ~20–25% below last year’s peak.

IGGY'S LUNCH TABLE VIEW

H1 closes tomorrow with STI near record levels. That is constructive, but it tightens entry points for income investors. I am watching whether REITs pick up volume this afternoon. Quiet at highs is not the same as safe. I am watching, not chasing.

$Golden Agri-Res(E5H.SG)