Fast take: KLK rises on earnings beat

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KUALA LUMPUR: Shares in Kuala Lumpur Kepong rose in early commerce Wednesday after it reported better-than-expected fourth quarter outcomes.

The plantation group added 0.99%, or 20 sen to RM20.46. It’s presently the second high gainer on Bursa Malaysia. Yr-to-date, the counter has fallen some 14%.

KLK’s internet revenue surged virtually 200% to RM625.80mil for its fourth quarter of the monetary yr ended Sept 30, 2021 (4Q21) from RM208.82mil a yr in the past.

Its income in 4Q21 grew to RM5.93bil from RM4bil a yr earlier.

For FY21, KLK’s internet revenue surged to RM2.26bil from RM772.60mil in FY20, whereas income grew to RM19.92bil from RM15.60bil.

“KLK’s FY21 internet earnings of RM2.2bil got here in above expectations, making up 139.7% of our expectation and 114.7% of consensus full yr estimates,” MIDF Analysis mentioned.

The analysis home has revised upwards its FY23 earnings forecast to RM1043.7mil attributable to higher efficiency for its upstream phase.

“For FY22F nonetheless, the upward revision in base earnings is greater than offset by the affect of the Cukai Makmur, leading to a decrease internet revenue forecast of RM1146mil,” it mentioned.

“We revised our goal worth to RM28.37 (from RM29.71). That is premised on pegging FY22F EPS of 106.3sen towards ahead PER of 26.7x. Our goal PER is at one commonplace deviation above KLK’s two-year historic common,” MIDF mentioned.

It has maintained its “purchase” suggestion on KLK with a revised goal worth of RM28.37.



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