Kim Loong Resources Berhad

We can see a number of cash rich companies announcing special dividends. This may, or may not, be due to the dividend tax coming into play next year. For example:

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD) and $UTDPLT / 2089 (UNITED PLANTATIONS BERHAD) (have been declaring special dividends for many years already)
$LYSAGHT / 9199 (LYSAGHT GALVANIZED STEEL BERHAD) as discussed by @benghooi and @realalvinang before
$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD) with a substantial 17 sen special dividend for the first time in over a decade
$KOSSAN / 7153 (KOSSAN RUBBER INDUSTRIES BERHAD) also declares a special dividend
Pecca, Hexza, TMCLIFE, hupseng, far east and more.

What are some similarities of these few companies declaring these dividends? Some are record high, some are highest in a few years-- are these dividends coming from improved business operations, or appropriation of cash in the balance sheet that is expected not to be utilised in the near future?

Which other companies could potentially give a surprise bumper dividend before the year ends?
Many listed companies in Bursa are cash rich (or even cash hoarding, some might say); could there be any other which could be compelled to issue dividends soon?

Of course, as usual, due diligence is required and it's typically not a good idea to be fixated on just this singular facet (of special dividends due to the upcoming dividend tax). But it's something to think about. After all, if a major shareholder was to receive the money from the business they have been handling for years; now would be as good a time as any.

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD)
https://cutt.ly/IeGXPDVN

PETALING JAYA: Kim Loong Resources Bhd, which posted an 18.9% year-on-year (y-o-y) growth in its bottom line for the first half of its financial year 2025 (1H25), may see a weaker performance in the 2H25 due to softer crude palm oil (CPO) prices.

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD)
Research by TA Securities

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD)
Research by APEX Securities

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD)
Research by TA
HOLD – TP RM2.50

" Strategic Growth Amid Challenges”

We recently conducted a virtual meeting with the management of Kim Loong Resources Berhad (KIML) with a few key takeaways. Going ahead, the group is focused on earnings recovery in FY25. Management expects a 5% growth in FFB production and explores new revenue streams, such as coconut plantations. We keep our TP at RM2.50/share but downgrade KIML from Buy to HOLD due to limited upside potentials

Analyst:
Angeline Chin
angelinechin@ta.com.my

@realalvinang collectively, there are a bunch of reasons why and I think you covered some of the main ones. However, zoom in a bit from just a "plantation sector" into "selected plantation companies" and you might find some that are performing very well indeed.

For better or for worse, a lot of the "largest cap" plantation companies are no longer pure planters, but instead more like conglomerates including sime darby, ioi, klk, genp, and so on, with arms in solar, property, oleochems, etc. With them being so big cap, they carry the highest weightage in the plantation index.

Focusing on more pure planters, for example $UTDPLT / 2089 (UNITED PLANTATIONS BERHAD) , $KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD) $TAANN / 5012 (TA ANN HOLDINGS BERHAD) $JTIASA / 4383 (JAYA TIASA HOLDINGS BHD) $TSH / 9059 (TSH RESOURCES BERHAD) , you would see that their share price gains range from amazing to not too bad in the recent few years.

What happened with utdplt, compared to the rest? And which other company could potentially replicate what utdplt has done in the past few years? I think that's worth studying.

General Meetings: Outcome of Meeting

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD)
Research by TA
Buy – TP RM2.50

“A Good Start to the Year"

Maintain KIML as BUY with an unchanged TP of RM2.50/share based on 16x CY25 EPS. We like KIML due to its healthy balance sheet and net cash position which offers stable dividend yield of 5% - 6% per annum.

Analyst:
Angeline Chin
angelinechin@ta.com.my

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD)
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

KUALA LUMPUR: Kim Loong Resources Bhd aims to achieve at least 5% higher fresh fruit bunches (FFB) production for the current financial year ending Jan 31, 2025 (FY25), driven by improved age profiles of young palm productive areas and ongoing replanting initiatives.

Quarterly rpt on consolidated results for the financial period ended 30/04/2024

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

STATEMENT TO SHAREHOLDERS IN RELATION TO THE PROPOSED RENEWAL OF AUTHORITY FOR SHARE BUY-BACK

Annual Report & CG Report - 2024

CIRCULAR TO SHAREHOLDERS IN RELATION TO THE PROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

General Meetings: Notice of Meeting

Additional Listing Announcement /Subdivision of Shares

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RECURRENT RELATED PARTY TRANSACTIONSPROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

OTHERSPROPOSED RENEWAL OF AUTHORITY OF SHARE BUY BACK

Additional Listing Announcement /Subdivision of Shares

MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)

DISCLOSURE ON QUARTERLY PRODUCTION

PLANTATION
$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD) $UMCCA / 2593 (UNITED MALACCA BERHAD)
Research by TA
Underweight

“Stockpile Dipped Below 2mn Tonnes”

The palm oil stockpile reported by the Malaysia Palm Oil Board (MPOB) fell below the 2mn mark in March 2024. This was the second time it came less than 2mn tonnes since August 2023, marking its lowest level in eight months. The stockpile, amounting to 1.71mn tonnes (-10.7% MoM), fell below the consensus estimate of 1.76mn to 1.79mn tonnes. The drop was mainly due to higher exports (+28.6% MoM) and lower imports (-32.7% MoM). Production increased by 10.6% MoM (+8.1% YoY) to 1.39mn tonnes, slightly surpassing the consensus forecast of 1.36 to 1.38mn tonnes. Finally, the domestic usage decreased by 32.7% MoM to 21.9 thousand tonnes. Overall, we view the MPOB data as bullish for the market.

Analyst(s):
Angeline Chin
angelinechin@ta.com.my

Kim Loong Resources Bhd is projected to achieve a minimum of 5% higher fresh fruit bunch (FFB) production for its financial year 2025 (FY25).

Additional Listing Announcement /Subdivision of Shares

Additional Listing Announcement /Subdivision of Shares

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD)
Research by Apex
Hold – TP of MYR2.05

“Above expectations”

KMLOONG’s FY24 core net profit at RM203.6m 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 RM4,000/mt backed by festive season consumption and heightened biodiesel demand. We maintain our HOLD recommendation with a target price of RM2.05 by pegging PE multiple of 14.2x to FY25f EPS of RM0.14.

Analyst(s):
Steven Chong
stevenchong@apexsecurities.com.my

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD)