Kuala Lumpur Kepong Berhad - Dragged by downstream segment
Tue, 21-May-2024 09:20 am
by Steven Chong • Apex Research

Counter

KLK (2445)

Target Price (RM)

19.57

Recommendation

Sell

  • KLK’s 2QFY24 core net profit of RM352.1m was below our and consensus expectation, due to lower-than-expected margins achieved in the manufacturing segment.
  • Plantation segment recorded higher profit due to strong volume sales offsetting the impact of lower CPO and PK ASP.
  • Re-iterate our SELL recommendation with a target price of RM19.57 based on 17.4x PER pegged to FY24 EPS.
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