KL Kepong / Lee Oi Hian

Re: KL Kepong

Postby winston » Thu Aug 18, 2016 8:13 am

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KL Kepong Q3 earnings higher at RM253m

BY JOSEPH CHIN

It said on Wednesday its earnings rose 2.6% to RM253.39mil from RM246.88mil a year ago while earnings per share were 23.80 sen compared with 23.20 sen.

Its revenue increased by 10.8% to RM3.92bil from RM3.54bil a year ago.


Source: The Star

http://www.thestar.com.my/business/busi ... at-rm253m/
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Re: KL Kepong

Postby winston » Sun Feb 05, 2017 7:59 am

TAN SRI LEE OI HIAN AND DATUK LEE HAU HIAN
Flagship: Batu Kawan Bhd
Net worth: RM4bil

BROTHERS Oi Hian (left) and Hau Hian-controlled Kuala Lumpur Kepong Bhd (KLK) made news recently when it failed in its £415.4mil (RM2.3bil) takeover to acquire shares of London-listed plantation firm MP Evans Group PLC.

The offer lapsed after KLK failed to get the required 50% acceptance level.

KLK had initially approached MP Evans’ board with an offer price of 640 pence, but later sweetened the offer to 740 pence, a 74% premium to MP Evans’ closing price on Oct 24.

KLK had seen strategic merit in synergising the operations of MP Evans with KLK’s from a geographical and capabilities perspective.

While the plantation group has the balance sheet strength to up the offer, not doing so at a time when the ringgit is weak is seen as the right thing to do.

However, KLK is not completely out of the game to take over MP Evans, as should there be a firm offer from a third party for MP Evans, the former has the right to make another go for it.

For now, it is business as usual for the Lee brothers, who are more known for their interest in KLK than its parent company, Batu Kawan Bhd.

The sons of the late founder, Tan Sri Lee Loy Seng, control 50.3% of Batu Kawan, which, in turn, owns 46.6% of KLK.

Batu Kawan’s biggest investment is in KLK and it is often seen as a cheaper proxy to KLK.

Batu Kawan’s stake in KLK is worth almost RM11.94bil, which in itself is worth more than its own market capitalisation of RM8.02bil.

The wealth of the duo was up by some 10% to RM4.06bil, following gains in the shares of Batu Kawan that rose about 5% on higher palm oil prices in 2016.

Besides plantation, it also has an interest in oleo chemicals and property development. KLK also owns personal care product maker Crabtree & Evelyn.

Oi Hian, 66, is the non-executive chairman of Batu Kawan and chief executive of KLK. Meanwhile, 64-year-old Hau Hian is Batu Kawan’s managing director.

Source: The Star
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Re: KL Kepong / Lee Oi Hian

Postby winston » Wed Feb 08, 2017 10:03 am

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An expected good start to FY9/17

Good 1Q results may not be sustainable

1QFY9/17 earnings will be seasonally off to a good start as KLK benefits from high palm oil prices despite flattish YoY output.

We expect 1Q core earnings to meet 35%/30% of our/consensus full-year earnings forecasts – above ours but within market estimates.

We are keeping our forecasts for now as we remain cautious of its 2HFY9/17 outlook, for we anticipate CPO price to correct on improving industry yields.

HOLD with TP of MYR24.40 based on 26x FY17 PER, pegged to its 5-year historical mean.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/4 ... 234803.pdf?
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Re: KL Kepong / Lee Oi Hian

Postby winston » Mon Oct 30, 2017 12:48 pm

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KL Kepong

Our target price is based on a sum-of-the-parts valuation, as its earnings are derived from palm oil-based profit and the property development segment.

On the earnings front, we apply a 17E 15x P/E (mean valuation).

On the property front, we apply a 65% discount to RNAV given the long gestation on unlocking
value from the large land bank.

Key industry downside risks:
1. A major downturn in CPO or soybean prices;
2. Indonesia's government halts the biodiesel policy;
3. Environmental issues that might lead to a revocation of land bank and
4. A ban of CPO usage in certain countries.

Key company downside risks:
1. Earnings-dilutive acquisitions;
2. Worse-than-expected production and
3. Labour shortages

Source: DB
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Re: KL Kepong / Lee Oi Hian

Postby winston » Sat Aug 18, 2018 5:51 am

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Stronger Q4 expected for KLK

KUALA LUMPUR: Maybank Investment Bank (IB) Research expects Kuala Lumpur Kepong Bhd
(KLK) to post stronger Q4 results, boosted by anticipated net inventory drawdown, and decent downstream earnings.

The research house said on Friday that while the group’s Q3 results had disappointed largely on weak plantation earnings, it believed there was a net inventory build-up which could boost profits in the final quarter.

However, it conservatively lowered its earnings forecasts by 5%-6% and trimmed its target price to RM23.70 from RM25.00.

“Given limited downside, KLK remains a HOLD,” the research house said.

Plantation earnings before interest and tax (EBIT) for the quarter fell 42% year-on-year to RM136mil, underpinned by lower plantation revenue and higher-than-expected cost of production.

The lower revenue was achieved despite relatively flattish FFB output and only 14% lower CPO average selling prices achieved.

“This leads us to believe there was a net build-up in inventory in Q3 that could boost sales in the Q4,” it said.

As for manufacturing, it noted that the division chalked up decent margins of 4% to bring in RM99mil in EBIT, a turnaround from a RM5mil loss a year ago.

Its oleo division benefited from the low raw material cost.

As for property, it delivered a decent EBIT of RM8mil on higher progress billing.

Source: The Star

https://www.thestar.com.my/business/bus ... D2Q16oW.99
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Re: KL Kepong / Lee Oi Hian

Postby winston » Sat Aug 18, 2018 5:51 am

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Stronger Q4 expected for KLK

KUALA LUMPUR: Maybank Investment Bank (IB) Research expects Kuala Lumpur Kepong Bhd
(KLK) to post stronger Q4 results, boosted by anticipated net inventory drawdown, and decent downstream earnings.

The research house said on Friday that while the group’s Q3 results had disappointed largely on weak plantation earnings, it believed there was a net inventory build-up which could boost profits in the final quarter.

However, it conservatively lowered its earnings forecasts by 5%-6% and trimmed its target price to RM23.70 from RM25.00.

“Given limited downside, KLK remains a HOLD,” the research house said.

Plantation earnings before interest and tax (EBIT) for the quarter fell 42% year-on-year to RM136mil, underpinned by lower plantation revenue and higher-than-expected cost of production.

The lower revenue was achieved despite relatively flattish FFB output and only 14% lower CPO average selling prices achieved.

“This leads us to believe there was a net build-up in inventory in Q3 that could boost sales in the Q4,” it said.

As for manufacturing, it noted that the division chalked up decent margins of 4% to bring in RM99mil in EBIT, a turnaround from a RM5mil loss a year ago.

Its oleo division benefited from the low raw material cost.

As for property, it delivered a decent EBIT of RM8mil on higher progress billing.

Source: The Star

https://www.thestar.com.my/business/bus ... D2Q16oW.99
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Re: KL Kepong / Lee Oi Hian

Postby winston » Thu Nov 15, 2018 8:58 am

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CIMB Research cuts earnings forecast for KL Kepong

CIMB Equities Research cut its earnings forecasts for Kuala Lumpur Kepong’s (KLK) FY19-20F by 28%-36% to reflect lower crude palm oil (CPO) and palm kernel (PK) price assumptions.

It said on Thursday the lower CPO and PK outlook led it to downgrade its sum-of-parts based target price to RM24.54 from RM24.82.

Source: The Star

https://www.thestar.com.my/business/bus ... hMGgOkT.99
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