[%GQqz%]
Research by APEX
HOLD – TP RM 20.35

" Stellar performance from plantation operation”

• KLK reported 3QFY24 core net profit of RM295.9m (+165.9% qoq, +173.4% yoy), bringing 9MFY24 CNP to RM610.8m (-19.2% yoy), which was below ours and consensus’ expectations, constituting 65.7% and 54.8% of forecasts respectively, due to lower-than-expected CPO price as actual CPO ASP in 1H24 was -8% lower than expectations.
• We lower our FY24-26 earnings by -6.5%/-4.4%/-1.5% as we revised our FY24-26 CPO ASP assumption from RM3,900/RM3,800/RM3,800 to RM3,700/RM3,600/RM3,600.
• Revised our recommendation to HOLD (Previously SELL: RM19.57) with a higher target price of RM20.35 based on 17.4x PER pegged to FY25 EPS.

Analyst:
Steven chong
[%tbkQ%]

$KLSE-KLK
Research by APEX
HOLD – TP RM 20.35

" Stellar performance from plantation operation”

• KLK reported 3QFY24 core net profit of RM295.9m (+165.9% qoq, +173.4% yoy), bringing 9MFY24 CNP to RM610.8m (-19.2% yoy), which was below ours and consensus’ expectations, constituting 65.7% and 54.8% of forecasts respectively, due to lower-than-expected CPO price as actual CPO ASP in 1H24 was -8% lower than expectations.
• We lower our FY24-26 earnings by -6.5%/-4.4%/-1.5% as we revised our FY24-26 CPO ASP assumption from RM3,900/RM3,800/RM3,800 to RM3,700/RM3,600/RM3,600.
• Revised our recommendation to HOLD (Previously SELL: RM19.57) with a higher target price of RM20.35 based on 17.4x PER pegged to FY25 EPS.

Analyst:
Steven chong
stevenchong@apexsecurities.com.my