[%DCpk%]
Research by Maybank
HOLD – TP RM 21.80

" 3Q: Stronger QoQ but missing our/consensus estimates”

3Q’s earnings are showing signs of promising recovery but still short of expectations especially in the manufacturing division. We expect KLK to deliver its best results for FY24 in its 4Q on better CPO ASP, higher output, lower unit costs, and recovery in manufacturing earnings. Following our earnings revisions, KLK remains a HOLD with a lower TP of MYR21.80 on rolled forward 19x FY25E PER (from MYR22.60 on 19x FY24E PER), its - 0.5SD of 6Y mean. We prefer SDG MK (BUY, CP: MYR4.55, TP: MYR4.96)

Analyst:
Ong Chee Ting, CA
[%lbjC%]

$KLSE-KLK
Research by Maybank
HOLD – TP RM 21.80

" 3Q: Stronger QoQ but missing our/consensus estimates”

3Q’s earnings are showing signs of promising recovery but still short of expectations especially in the manufacturing division. We expect KLK to deliver its best results for FY24 in its 4Q on better CPO ASP, higher output, lower unit costs, and recovery in manufacturing earnings. Following our earnings revisions, KLK remains a HOLD with a lower TP of MYR21.80 on rolled forward 19x FY25E PER (from MYR22.60 on 19x FY24E PER), its - 0.5SD of 6Y mean. We prefer SDG MK (BUY, CP: MYR4.55, TP: MYR4.96)

Analyst:
Ong Chee Ting, CA
ct.ong@maybank-ib.com