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Research by Public
Neutral – TP RM21.33

" Expecting a Strong Catch Up in 4Q”

Kuala Lumpur Kepong (KLK) posted 9MFY24 core earnings of RM721.4m, down 5.2% YoY after stripping out 1) loss on derivatives amounting to RM113.6m, ii) gain on derivatives (RM28.5m), iii) surplus on disposal of land (RM14.2m), iv) surplus arising from government acquisition of land (RM44.3m), v) equity loss of RM87.2m from Synthomer plc and vi) a loss of RM23.4m from the farming business. The results made up 64.6% and 65.8% of our and the street’s full-year expectations, respectively. In view of the seasonally stronger production in the final quarter, we expect to see a strong catch-up in the final quarter. Maintain Neutral with an unchanged SOP-based TP of RM21.33. No dividend was declared for the quarter.

Analyst:
Chong Hoe Leong
[%zzIe%]

$KLSE-KLK
Research by Public
Neutral – TP RM21.33

" Expecting a Strong Catch Up in 4Q”

Kuala Lumpur Kepong (KLK) posted 9MFY24 core earnings of RM721.4m, down 5.2% YoY after stripping out 1) loss on derivatives amounting to RM113.6m, ii) gain on derivatives (RM28.5m), iii) surplus on disposal of land (RM14.2m), iv) surplus arising from government acquisition of land (RM44.3m), v) equity loss of RM87.2m from Synthomer plc and vi) a loss of RM23.4m from the farming business. The results made up 64.6% and 65.8% of our and the street’s full-year expectations, respectively. In view of the seasonally stronger production in the final quarter, we expect to see a strong catch-up in the final quarter. Maintain Neutral with an unchanged SOP-based TP of RM21.33. No dividend was declared for the quarter.

Analyst:
Chong Hoe Leong
chonghoeleong@publicinvestbank.com.my