Kim Loong Resources Berhad - Resilience during challenging times
Tue, 02-Jan-2024 08:43 am
by Steven Chong • Apex Research

Counter

KMLOONG (5027)

Target Price (RM)

1.84

Recommendation

Hold

Summary

  • Involved in oil palm cultivation and related businesses. KLR produces FFB through oil palm cultivation in its palm estates.
  • Revenue is expected to decline to RM1.71b (-10.1% yoy) and RM1.67b (-2.5% yoy) in FY24F/FY25F as CPO price is expected to head towards downtrend offsetting any additional growth from CPO production.
  • KLR is valued by pegging its FY25F core EPS of 13.3 sen to PE of 14.2x, leading to a FV of RM1.84 (-8.9% potential downside from current price).
Read more details in:

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 4.452920 4.487673
EUR 4.698373 4.707035
CNY 0.612094 0.612693
HKD 0.572113 0.576600
SGD 3.311112 3.337265