[%cmur%] 
Research by Public 
Neutral – TP RM8.60

“Another Set of Commendable Results” 

Excluding i) foreign exchange gain (RM1.3m) and ii) net fair value gain on investment securities (RM3m), Chin Teck Plantations posted 9MFY24 core earnings of RM60.5m, up 71.9% YoY, mainly bolstered by a surge in FFB production and lower production cost. The strong results were above our and consensus full-year expectations, making up 87% and 78%, respectively. We raise our FY24-26F earnings forecasts by 13-16% to reflect stronger FFB production growth, though also account for larger losses from the associates. Maintain Neutral with a higher TP of RM8.60 based on lower multiple of 10x FY25 EPS (previously 11x) given increased concerns over its Indonesian operations. A 2nd interim dividend of 8sen and a special dividend of 20sen was declared for the quarter, bringing the cumulative dividend 40sen (9MFY23: 20sen).

Analyst:
Chong Hoe Leong
[%NfJQ%]

$KLSE-CHINTEK 
Research by Public 
Neutral – TP RM8.60

“Another Set of Commendable Results” 

Excluding i) foreign exchange gain (RM1.3m) and ii) net fair value gain on investment securities (RM3m), Chin Teck Plantations posted 9MFY24 core earnings of RM60.5m, up 71.9% YoY, mainly bolstered by a surge in FFB production and lower production cost. The strong results were above our and consensus full-year expectations, making up 87% and 78%, respectively. We raise our FY24-26F earnings forecasts by 13-16% to reflect stronger FFB production growth, though also account for larger losses from the associates. Maintain Neutral with a higher TP of RM8.60 based on lower multiple of 10x FY25 EPS (previously 11x) given increased concerns over its Indonesian operations. A 2nd interim dividend of 8sen and a special dividend of 20sen was declared for the quarter, bringing the cumulative dividend 40sen (9MFY23: 20sen).

Analyst:
Chong Hoe Leong
chonghoeleong@publicinvestbank.com

$CHINTEK / 1929 (CHIN TECK PLANTATIONS BERHAD)