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Research by Apex
Buy – TP RM2.34

“Off to a Great Start"

• KMLOONG’s 1QFY25 core net profit at RM49.5m came above our expectations, driven by higher-than-expected CPO production and reduced operational costs which led to an increased net profit margin.
• Looking ahead, CPO prices are expected to average at RM3,800/mt in 2H24 as FFB production enters its peak season.
• We upgrade our recommendation to BUY with a target price of RM2.34 by pegging PE multiple of 15.2x to FY25f EPS of 15.4 sen.

Analyst:
Steven Chong
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$KLSE-KMLOONG
Research by Apex
Buy – TP RM2.34

“Off to a Great Start"

• KMLOONG’s 1QFY25 core net profit at RM49.5m came above our expectations, driven by higher-than-expected CPO production and reduced operational costs which led to an increased net profit margin.
• Looking ahead, CPO prices are expected to average at RM3,800/mt in 2H24 as FFB production enters its peak season.
• We upgrade our recommendation to BUY with a target price of RM2.34 by pegging PE multiple of 15.2x to FY25f EPS of 15.4 sen.

Analyst:
Steven Chong
stevenchong@apexsecurities.com.my

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD)