KL Kepong / Lee Oi Hian

KL Kepong / Lee Oi Hian

Postby winston » Thu May 26, 2011 10:54 am

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Kuala Lumpur Kepong [KLK MK] - Buy : In-line 2QFY11 on strong production recovery and higher CPO ASPs;
Downstream margins surprise positively( RM21.5 / PT: RM25.5 )


by Ken Arieff Wong

KLK reported 2QFY11 (Sep FYE) net profit of RM373.9mn (up a strong 73% y-y).

1HFY11 net income at RM678mn (up 48% y-y), forms 50% of our (and Street's) full-year estimate of RM1,360mn.

CPO ASP achieved for the quarter was up 21% y-y at RM3,041/mT, although still lagging benchmark average prices, and CPO production was up 9% y-y.

Manufacturing division boosted earnings, with margins improving 7ppt, whereas retail posted a loss, in line with expectations.

The group announced an interim dividend of 15 sen per share (unchanged y-y).

Maintain BUY on attractive valuations, and strong growth profile.

Source: Nomura
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Re: Kuala Lumpur Kepong

Postby winston » Thu Jun 19, 2014 6:23 am

KL Kepong net profit jumps 50% to RM314mil, declares 15 sen dividend

KUALA LUMPUR: Kuala Lumpur Kepong Bhd’s second quarter net profit rose 50% to RM314.6mil from RM209.65mil a year ago of better realised selling prices of crude palm oil and palm kernel.

Its revenue for the period rose 31% to RM2.934bil from RM2.235bil a year ago, it said in a Bursa Malaysia filing on Wednesday.

The group’s earnings per share stood at 29.50 sen from 19.70 sen a year ago.

It has also declared a 15 sen dividend.

The group said its plantations segment posted a RM288.5mil profit, which was 50.6% above last year’s same quarter profit of RM191.6mil.

Its manufacturing sector posted an increase of 69.7% in profit to RM137.7mil on the back of a 27.9% rise in revenue to RM1.494bil.

Moving forward, the group said production may be affected if the predicted El Nino weather phenomenon and the sub-normal monsoon in India materialises.

“In view of the above factors and the prevailing palm products prices which will remain volatile, the plantations profit for the current financial year is anticipated to be higher than that of the previous financial year,” it said.

It noted that its oleochemical market is expected to face challenges due to the volatility of raw material prices, export duty differential in Indonesia and competitive pressures from increased capacities.

“However, with the anticipated recovery in demand and the continuous drive for operational efficiencies and productivity improvement, the manufacturing sector expects satisfactory profits for the current financial year,” it said.

Nonetheless, the group expects the profit for the current financial year to exceed that of last financial year.

Source: The Star
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Re: KL Kepong

Postby winston » Thu Jun 19, 2014 6:25 pm

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KLK loses land titles in PNG palm oil plantations

MELBOURNE: A Papua New Guinea (PNG) court revoked two 99-year land titles awarded to Kuala Lumpur Kepong (KLK) of Malaysia to develop palm oil plantations on 38,350 hectares of land in Collingwood Bay, Oro province, following complaints by customary landowners.

A report by Fatima Hansia on her CorpWatch Blog said the local landowners argued that palm oil development would exact a heavy price on their community, making the case that the deforestation of pristine rainforests to prepare land for plantations would erode traditional biodiversity and livelihoods while releasing vast quantities of carbon dioxide emissions.

Community members applauded the decision and urged the courts to go further.

“We are urging the government to take a firm and decisive decision ... by cancelling all the illegal leases,” Lester Seri, a spokesperson for the community told PNGexposed Blog. “Court cases are expensive and beyond the means of most village people.”

Since the late 1970s, PNG has tried to attract investment from foreign agro-business companies to stimulate economic growth and provide job opportunities by issuing Special Agricultural Business Leases (SABLs) to develop land concessions.

To date 400 SABLs covering five million acres (about 2.02 million hectares) have been issued, the blog said.

Under the Land Act of 1996, these SABLs can only be issued if an “instrument of lease in an approved form” or an “acquisition by agreement” is signed.

This means that the state must have a valid lease agreement with leaders of customary land and the prior informed consent of the affected landowners.

The acquired land can then simultaneously be released by title deed to an “agreed” person -– usually a foreign company -– for a maximum of 99 years.

However the SABL system has recently come under fire. A Commission of Inquiry was set up in 2011 after complaints from environmental and human rights NGOs over “land grabbing” on customary lands.

“The Commission of Inquiry found widespread abuse, fraud, lack of coordination between agencies of government, failure and incompetence of government officials to ensure compliance, accountability and transparency within the SABL process from application stage to registration, processing, approval and granting of the SABL,” wrote John Numapo, the Chief Commissioner, in the final report.

Source: Bernama
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Re: KL Kepong

Postby winston » Thu Oct 23, 2014 9:03 am

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20 Oct 2014

DJ Kuala Lumpur Kepong Is Cheap Enough to Look Good: Affin Hwang -- Market Talk

0446 GMT [Dow Jones] Malaysian planter Kuala Lumpur Kepong (2445.KU) is looking cheap enough to slap a buy rating on the stock, Affin Hwang Capital says in a note.

Although crude palm oil prices are weak and the outlook is not optimistic, declines in the value of KLK stock have made it an attractive investment for the long term,

Affin Hwang says, since the company offers good quality management, a large plantation area, strong fresh fruit bunches production growth, monetization of a well-located land bank and a strong balance sheet.

Affin Hwang maintains its price target at 23.04 ringgit ($7.05) a share. KLK trades 1.2% higher early Monday afternoon at 20.46 ringgit a share.

Year-to-date, the stock has lost 17.8% and trades at a price-to-earnings ratio of 19.96.

Source: Dow Jones Newswire
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Re: KL Kepong

Postby winston » Tue Nov 04, 2014 8:22 am

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DJ Palm Oil Price Rise a Boon for Malaysia's KLK: RHB -- Market Talk

0743 GMT [Dow Jones] Malaysian plantation operator Kuala Lumpur Kepong (2445.KU) will benefit if crude palm oil prices rise through to first quarter of 2015, as expected, RHB says in a note.

"With the seasonal peak for fresh fruit bunches production almost over, crude palm oil prices have a window of opportunity to strengthen," the research note says, estimating that KLK could enjoy 4%-6% improvement in earnings per annum for every 100 ringgit ($30.36) per tonne change in crude palm oil prices.

RHB raises its rating KLK to neutral from sell with a target price of 21.30 ringgit a share.

KLK trades 0.1% higher Friday afternoon at 23 ringgit. The stock has performed well this month, up 9% to date.

Source: Dow Jones Newswires
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Re: KL Kepong

Postby winston » Tue Nov 11, 2014 7:41 am

KLK proposes JV with Indonesian palm oil producer

KUALA LUMPUR (Nov 10): Plantation giant Kuala Lumpur Kepong Bhd (KLK) ( Financial Dashboard) has proposed a joint venture (JV) with leading Indonesian palm oil producer PT Astra Agro Lestari Tbk (AALI).

KLK announced today that its wholly-owned subsidiary KL Kepong Plantations Holdings Bhd (KLKPH) has on even date entered into a JV agreement with AALI.

Under the agreement, AALI will take up a 50% stake in KLK’s subsidiary PT Kreasijaya Adhikarya (JV Co). Following the entry of AALI, JV Co, which is involved in refinery and trading of palm oil refined products, will cease to be a subsidiary of KLK.

The JV Co will be jointly and equally owned by AALI and KLKPH.

In a filing with Bursa Malaysia today, KLK said the proposed JV is to leverage on synergies between both parties’ plantation expertise.

AALI manages 285,300 ha of oil palm plantations in Sumatera, Kalimantan and Sulawesi. Its production is supported by 27 mills, with total production capacity of 1,325 tonnes per hour.

“KLK will be bringing its downstream expertise, whereas, AALI will bring its local market insight on sourcing purposes and supply of good quality raw materials,” it said in the announcement.

The proposed JV requires the approval of the Capital Investment Coordinating Board of Indonesia and the sale of equity stake held by a minority shareholder in JV Co to KLKPH, among other conditions.

The proposed JV is expected to be completed in the first quarter next year.

KLK nudged up 20 sen or 0.9% to RM23.04 at midday break. The stock was thinly traded, with 400 shares changing hands.

Source: The Edge
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Re: KL Kepong

Postby winston » Wed Nov 19, 2014 10:04 pm

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KL Kepong Q4 earnings slip as oleochemicals unit records losses

KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK) recorded net profit of RM170.75mil in the fourth quarter ended Sept 30, 2014, down 33.8% from RM258mil a year ago due to losses incurred by its manufacturing sector caused by reduced margins while the oleochemical division sank into losses.

KLK said on Wednesday pre-tax profit fell 28.3% to RM238.62mil from RM332.70mil a year ago despite 15.0% improvement in revenue to RM2.778bil from RM2.415bil.

Earnings per share were 16 sen compared with 24.2 sen. It declared an interim dividend of 40 sen a share.

KLK’s manufacturing sector incurred a loss of RM9.4mil compared with the profit of RM105.9mil a year ago. However, the revenue was up 13.7% to RM1.415bil compared with RM1.245bil a year ago.

The current quarter's performance was impacted by reduced margins due to weak oil prices and had necessitated the write-down of stocks.

“The oleochemical division reported a loss of RM13.4mil compared with a profit of RM92.30mil a year ago. The other manufacturing units achieved a profit of RM4mil compared with RM13.60mil a year ago,” it said.

Its plantations profit climbed 10.9% to RM236.40mil from RM213.20mil a year ago due to an increase in fresh fruit bunches (FFB) production, drop in production cost and higher selling price of palm kernel.

However, the declining oil prices had pressured margins, resulting in negative contributions from the refineries and kernel crushing plants.

For the financial year ended Sept 30, it earnings rose 8% to RM991.70mil from RM917.74mil. Revenue rose 21.6% to RM11.13bil from RM9.147bil.

KLK said the plantations sector posted a profit of RM1.011bil, up 27.8% from the RM791.20mil a year ago.

“Despite the negative contributions from refineries and kernel crushing plants and lower profit from rubber sector, the improved results were due to better CPO and palm kernel selling prices; reduction in production cost and increased sales volume of CPO and palm kernel,” it said.

KLK’s manufacturing sector recorded a 14.2% decline with profit to RM274.80mil from RM320.30mil a year ago although revenue improved 20.0% to RM5.634bil compared with RM4.697bil a year ago.

“After a strong performance in the first half year, the bearish oil prices and weak market sentiment in the second half year had destabilised the overall demand pattern. The sharp drop of oil prices in the fourth quarter had impacted margins and resulted in stocks write-down. However, the better performance from European operations through higher volumes had mitigated the decline in profit,” it said.

On the prospects, it said CPO was trading between RM2,200 and RM2,300 a tonne aided by the temporary exemption of export duty, a weak Ringgit and restocking by large consuming countries.

“However, the impending large soybean harvest in the US and the low petroleum prices, which affect bio-diesel demand, are putting a resistance for further rise in prices.

“In view of the above factors and the prevailing palm products prices, the plantations profit for the current financial year is expected to be satisfactory albeit lower than that of the previous financial year,” it added.

KLK pointed out that for the oleochemical division, the weak oil prices would continue to pressure margins.

“However, with the increased capacities arising from the new plants coming on-stream together with the continuous drive for operational efficiencies and productivity improvement, this division expects reasonable profits for the current financial year,” it said.

Source: The Star
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Re: KL Kepong

Postby winston » Thu Nov 20, 2014 10:50 am

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KL Kepong under selling pressure

KUALA LUMPUR: Shares of Kuala Lumpur Kepong fell to a low of RM22.24 on Thursday after it reported a set of disappointing financial results in the fourth quarter ended Sept 30, 2014.

At 10.05am, KLK was down 72 sen to RM22.28. There were 153,700 shares done at prices ranging from RM22.24 to RM22.90.

The FBM KLCI, of which KLK is a component, fell 6.64 points to 1,817.75. Turnover was 353.94 million shares valued at RM214.71mil. There were 138 gainers, 275 losers and 204 counters unchanged.

CIMB Equities Research said KL Kepong's final results were broadly in line with its forecasts but below consensus. The final core net profit accounted for 95% of the research house’s full-year forecast but only 89% of consensus full-year earnings.

“The main disappointment came from losses registered by its manufacturing division in 4QFY14, due mainly to stocks write-down following the sharp decline in crude palm oil prices,” it said.

CIMB Research kept its EPS forecasts, sum-of-parts based target price of RM 22.10 and Hold call. The stock is supported by decent dividend yields.

Source: The Star
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Re: KL Kepong

Postby winston » Tue Feb 17, 2015 6:19 am

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KL Kepong earnings slump on weaker plantation performance

KUALA LUMPUR: Kuala Lumpur Kepong Bhd’s earnings declined 26.8% to RM214.20mil in the first quarter ended Dec 31, 2014 from the RM292.68mil a year ago on weaker performance by its plantation business.

KLK said on Monday its revenue was however, higher at RM3.11bil – up 24.8% -- from RM2.49bil. Earnings per share were 20.10 sen compared with 27.5 sen.

It explained the plantations profit fell 5.7% to RM242.10mil from RM256.7mil due mainly to weaker selling prices of crude palm oil (CPO) and rubber and also a decline in the production of fresh fruit bunches and rubber while cost of production of CPO increased.

However, the recognition of an unrealised gain of RM26.3mil (1QFY2014: unrealised loss RM5.6mil) arising from the changes in fair value on outstanding derivative contracts had mitigated the decline in profit.

Its manufacturing sector recorded a profit of RM29.5mil, a decline of 63.1% from the RM80mil a year ago. Even though revenue was 11.8% higher at RM1.418bil (1QFY2014: RM1.269bil), the results of this sector were affected by the negative margins from the fatty alcohol and surfactant businesses.

"The low petroleum price had made synthetic alcohol very competitive and destabilised fatty alcohol price," it said.

KLK said the oleochemical division's profit dropped 61.3% to RM28.8mil (1QFY2014: profit RM74.5mil) and the other manufacturing units reported a lower profit of RM706,000 (1QFY2014: profit RM5.5mil).

As for its properties sector, it posted a slightly higher profit of RM13.9mil (1QFY2014: profit RM13.2mil) which was in line with the increase in revenue to RM29.9mil (1QFY2014: RM27.4 million).

"Profit recognition from the development project in Bandar Seri Coalfields had contributed the profit of this sector," it said.

Source: The Star
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Re: KL Kepong

Postby winston » Tue May 17, 2016 6:46 am

KLK is example of growing from small to giant size company

BY IDRIS JALA

Source: The Star

http://www.thestar.com.my/business/busi ... naturally/
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