Kim Loong Resources Berhad - Off to a Great Start
Fri, 28-Jun-2024 08:01 am
by Steven Chong • Apex Research

Counter

KMLOONG (5027)

Target Price (RM)

2.34

Recommendation

Buy

  • 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.
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Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.186344 4.224837
EUR 4.692802 4.707788
CNY 0.594564 0.595974
HKD 0.537155 0.542118
SGD 3.243708 3.273864