KUALA LUMPUR: SD Guthrie Bhd's ambition to raise plantation oil yields by one tonne per hectare by 2029 could potentially lift its annual net profit by RM482 million, providing a significant earnings growth opportunity beyond fluctuations in crude palm oil (CPO) prices.

In a note, CIMB Securities Sdn Bhd said achieving the target could unlock an estimated RM8 billion, or RM1.15 per share, in additional equity value, based on an assumed price-to-earnings multiple of 16.5 times.

The target forms part of the group's broader medium- to long-term strategy to improve shareholder returns, which also includes monetising strategically located plantation land and expanding its midstream and downstream businesses.