KLK / Lee Oi Hian

[winston]

not vested

KLK’s 1Q net profit more than doubles to RM357.41 mil as plantation earnings jump

by Sulhi Khalid

Revenue rose 5.45% to RM4.3 billion from RM4.08 billion.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... nings-jump

[winston]

not vested

Kuala Lumpur Kepong (KLK MK)
High Production Growth And CPO ASP Dilute The Higher Cost of Production

We expect KLK’s FY22 earnings to increase by 15% yoy on the back of higher FFB
production and CPO prices.

The latest DMO changes should have a marginal impact on KLK as there will be no DPO moving forward.

We have revised our earnings up by around 7%, factoring in higher production growth and higher cost of production.

Maintain HOLD with a higher target price of RM30.00 (previous: RM28.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 8166eb82ae

[winston]

not vested

KLK 2Q net profit rises 11% to RM546mil, declares 20 sen dividend

Revenue surged 41.6% to RM6.38bil in 2Q22 compared with RM4.51bil in the same quarter last year.

Its realised CPO price was RM4,378 per tonne while PK at RM3,860 a tonne in 2Q22.

Increase in profit was partially offset by an unrealised loss of RM84.9mil from fair value changes on outstanding derivative contracts.

Source: The Star

https://www.thestar.com.my/business/bus ... n-dividend

[winston]

not vested

KLK 3Q net profit down y-o-y at RM558m, revenue up at RM6.96b

by Chong Jin Hun

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... nue-rm696b

[winston]

not vested

Kuala Lumpur Kepong (KLK MK)
3QFY22: Results Slightly Above Expectations

KLK’s 9MFY22 earnings came in slightly above our expectations, mainly due to higher than-expected profit from the manufacturing and property segments.

The plantation segment’s earnings came in within our expectations but it would have performed better if not for the hiccup in Indonesian operations.

We expect 4QFY22 earnings to come in flat qoq on the back of stronger sales volume but CPO ASP and downstream margin to be lower.

Maintain HOLD with a target price of RM25.25.

Source: UOBKH

https://research.uobkayhian.com/content ... 4ad977ea0f

[winston]

Tan Sri Lee Loy Seng

by Koon Yew Yin

His 2 sons are Lee Oi Hian and Lee Hau Hian

Currently, both Lee Oi Hian and Lee Hau Hian are controlling shareholders of KLK Bhd with a market capitalization of Rm 22,485 million and Batu Kawan with a market capitalization of Rm 8,515 million.

https://klse.i3investor.com/blogs/koonyewyinblog/

[winston]

not vested

Aug 25, 2023

Kuala Lumpur Kepong (KLK MK)
9MFY23: Below Expectations; Acquisition Is Expensive And Earnings-dilutive

KLK’s 3QFY23 results were below expectations due to larger-than-expected losses from
its manufacturing segment.

4QFY23 is expected to be better largely on higher ASP and lower cost but will not be able to offset the weakness for 9MFY23.

KLK also announced the acquisition of Boustead Plantations with a potential 65% stake. This is an expensive acquisition and dilutive to earnings and operation.

We adjust down our earnings and PE valuation.

Downgrade to HOLD with a target price of RM24.40.

Source: UOBKH

https://research.uobkayhian.com/content ... 5d4b36ff81

[winston]

not vested

Triggers a mandatory cash offer for BPLANT shares
We are neutral on the purchase in the near term
A
t MYR1.55 offer price, BPLANT is valued at 1x RNAV, 1.2x PBV, or implied EV/ha of c.MYR56,000/ha - a fair price.

However, in terms of PER, the offer price works out to be an expensive 66x forward (core) PER, which makes the purchase slightly earnings dilutive to KLK if BPLANT stops its practise of monetizing land to supplement its core income.

Following our EPS revisions post its 3QFY23 earnings, and given limited upside to our new
TP of MYR23.00 (from MYR23.90), we downgrade KLK to HOLD (from BUY).

Our new TP is on 17x rolled forward FY24E PER, its -0.75SD of 5Y mean.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/336683.pdf

[winston]

not vested

Feb 23, 2023

Lower CPO price, forex loss hit 1Q earnings

KLK's 1QFY23 core net profit was broadly in line; we project weaker earnings in the next few quarters due to higher estate costs.

We project KLK to post a 27% yoy decline in its FY23F net profit due to lower CPO price and weaker downstream margins.

Reiterate Add, with an unchanged SOP-based TP of RM22.87.

Key upside will come from KLK efforts to extract costs synergies from its recent M&As.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3ABE9A8668

[winston]

not vested

How KLK saved RM3bil by not acquiring BPlant

The political opposition that torpedoed the deal may be a blessing in disguise for KLK.

Lee Min Keong

Source: FMT

https://www.freemalaysiatoday.com/categ ... -366156373